Scooter's Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$692,150 - $1,523,400
Total US Locations
849
Business Summary
Scooter's Coffee offers franchises for the establishment and operation of quick-service coffee stores. These locations, operating under the 'SCOOTER'S COFFEE' service mark, sell espresso drinks, smoothies, baked goods, and various other food and beverage items. Scooter's Coffee offers different store models including drive-thru kiosks, end-cap spaces in strip centers with indoor ordering and a drive-thru, and other types such as free-standing buildings or locations within institutional settings.
Corporate History
Scooter's Coffee was initially created as a store in 1998 by Don and Linda Eckles. The company, Scooter's Coffee, LLC, was organized as a Nebraska limited liability company in 2010 and started offering franchises under the 'SCOOTER'S COFFEE' mark in October 2010. Prior to this, the parent company, Boundless Enterprises, LLC, formed in 2006, operated Scooter's Coffee stores as a franchisee from 2006 to 2010. Scooter's Coffee also offered area representative franchises from 2012 to 2023.
Financial Overview
Investment Range
$692,150 - $1,523,400
Franchise Fee (High)
$40,000
Royalty %
6%
Marketing %
2%
Equipment Costs (Low)
$486,050
Equipment Costs (High)
$1,169,550
Working Capital
$51,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
Scooter's Coffee reported negative working capital of approximately $17.8 million as of December 31, 2024. The company is a joint borrower and guarantor for significant debt obligations of its parent company, Boundless Enterprises, LLC, which totaled over $87 million as of December 31, 2024. Additionally, Scooter's Coffee guarantees up to $10 million of franchisee indebtedness, with an exposure of about $8.45 million as of the same date. The parent company refinanced its debt in February 2025, converting it into a $75 million term loan and a $25 million revolving line of credit. Despite these liabilities, the auditors issued an unqualified opinion on the financial statements, indicating fair presentation in accordance with U.S. GAAP.
Financing Details
Scooter's Coffee does not offer any direct or indirect financing to its franchisees. Scooter's Coffee also does not guarantee any franchisee notes, leases, or other obligations.
Performance Metrics
Total US Locations
849
Franchised Units
825
Corporate Units
24
Avg Square Footage
888
Franchising Since
2002
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Scooter's Coffee has no litigation required to be disclosed in Item 3 of its FDD. This means Scooter's Coffee has no reportable litigation history.
Bankruptcy History
Scooter's Coffee has no bankruptcy history required to be disclosed in Item 4 of its FDD.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Scooter's Coffee franchisees must provide advance notice and be in compliance with their current Franchise Agreement. They are required to sign the then-current form of franchise agreement, which may contain materially different terms. Franchisees must also provide evidence of property control for the duration of the new agreement, sign a general release of claims, pay a renewal fee of $10,000 or 25% of the then-current initial franchise fee (whichever is greater), and renovate their Store if applicable to meet current standards.
Training & Support Program
Franchisor Assistance
Scooter's Coffee provides a range of assistance to its franchisees. Before opening, Scooter's Coffee offers immersion and operations training, site selection criteria and may provide site selection assistance, and standards and specifications for store design, layout, equipment, inventory, and menu items. Franchisees also receive electronic access to the Operations Manual, 7 days of on-site opening assistance, and help with grand opening campaign planning. Ongoing support includes access to advertising and promotional materials, general ongoing support and training programs as deemed appropriate, updates to the Operations Manual and System, and management of the National Marketing and Advertising Fund. Scooter's Coffee may also periodically set minimum and maximum prices for menu items.
Initial Training Hours
180
Training Location
Omaha, NE; Dallas, TX; and designated training stores across the U.S.
Ongoing Support
Scooter's Coffee provides ongoing support that includes access to advertising and promotional materials, general assistance as deemed appropriate, and ongoing training programs. The franchisor also manages the National Marketing and Advertising Fund, provides updates to the Operations Manual and System, and may set minimum and maximum prices for menu items. Additionally, a Principal Owner or Designated Manager is required to attend between one and four national, regional, or local meetings or conferences per year, including an annual franchisee conference for which a registration fee applies.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Non-Exclusive
Territory Size Requirements
Scooter's Coffee does not grant exclusive territories to its franchisees. For individual store franchisees, Scooter's Coffee designates a "Non-Exclusive Search Area" within which the franchisee must find and get approval for their specific store location. This search area limits where the franchisee can open their store but does not provide any territorial rights. For multi-unit developers, Scooter's Coffee grants the right to develop a minimum number of stores within a "Development Area." This Development Area is typically defined by political boundaries such as street boundaries, city, county, or state limits, or other reasonable boundaries. The size of this Development Area is customized based on demographics, population density, income, local competition, and whether the area is urban, suburban, or rural. Even with a Development Area, multi-unit franchisees do not receive exclusive territorial rights. Scooter's Coffee retains the right to operate or franchise other Scooter's Coffee stores and distribute products through other channels, including online, both inside and outside any designated Development Area or Non-Exclusive Search Area.
Staffing Notes
Scooter's Coffee requires franchisees to appoint a Designated Manager who, along with a Principal Owner, must successfully complete mandatory initial training programs. A Principal Owner is not required to be the on-premises manager, but an associated shift supervisor must be available at the Franchised Location during all operating hours. Franchisees must notify Scooter's Coffee of any change in Designated Manager or shift supervisors within 10 days, and new managers must complete initial training within 15 days of assuming the role. For multi-unit owners, Scooter's Coffee may require the employment of Multi-Unit Leaders who must also attend specific training.