Summer Moon Coffee logo

Summer Moon Coffee Franchise

Audited Financials
Food and BeverageEst. 2004Driftwood, TX
www.summermoon.com

Risk Score

Pending analysis

Investment Range

$616,150 - $1,041,500

Franchise Fee

$25,000

Min Cash Required

$40,000

Total US Locations

36

Business Summary

Summer Moon Coffee Shop operates retail stores offering specialty coffees, teas, merchandise, baked goods, whole bean coffee, and other related food products, beverages, and desserts under the trade name SUMMER MOON. These shops are typically located in retail strip malls, in-line shopping centers, or non-traditional locations in high-traffic urban and suburban areas.

Corporate History

Summer Moon Franchising LLC was incorporated in Texas in March 2020 and began offering franchises in May 2020. The brand's heritage dates back to November 2004 when Dustin Karnes formed SUMMER MOON Coffee Roasters as a sole proprietorship. In January 2013, the assets of SUMMER MOON Coffee Roasters were merged into Coffee Unplugged, LLC, which then started offering licenses for an earlier version of Summer Moon Coffee Shops in May 2015. While Summer Moon Franchising LLC itself does not own or operate any shops, its affiliates operate 10 company-affiliated Summer Moon Coffee Shops.

Financial Overview

Investment Range

$616,150 - $1,041,500

Franchise Fee (Low)

$25,000

Franchise Fee (High)

$25,000

Minimum Cash Required

$40,000

Royalty %

6%

Equipment Costs (Low)

$302,000

Equipment Costs (High)

$635,000

Working Capital

$45,000

Audited Financials

Yes

Offers Financing

No

Audit Opinion

Unqualified opinion

Financial Health Notes

The franchisor, Summer Moon Franchising LLC, has disclosed a special risk regarding its financial condition. The franchisor states that its financial condition, as shown in its financial statements, raises questions about its financial ability to provide services and support to franchisees.

Financing Details

Summer Moon Franchising LLC does not offer any direct or indirect financing to its franchisees. Summer Moon Franchising LLC also does not guarantee any notes, leases, or other financial obligations for franchisees.

Performance Metrics

Total US Locations

36

Franchised Units

26

Corporate Units

10

Avg Square Footage

2,000

Franchising Since

2020

Agreement Terms

Initial Term

10 years

Renewal Term

5 years

Renewal Conditions

To renew, Summer Moon Coffee Shop franchisees must not be in default of their agreements. They must also provide proper notice, pay a successor fee, upgrade their Summer Moon Coffee Shop to meet current brand standards, sign the then-current form of franchise agreement (which may have different terms), sign a general release of claims, and attend any required training.

Training & Support Program

Franchisor Assistance

Summer Moon Franchising LLC provides extensive support to its franchisees. Before opening, Summer Moon Franchising LLC furnishes standards for leasehold improvements, furniture, fixtures, equipment, and signage, and lists of approved food and beverage products and suppliers. The franchisor or its affiliates are the sole source for certain proprietary items like coffee, Moon Juice, and Nitro, which they sell to franchisees. Summer Moon Franchising LLC offers initial training for up to three people (Controlling Principal, General Manager, and one other approved trainee) for the first coffee shop, covered by the Initial Training and Grand Opening Support Fee. Summer Moon Franchising LLC also loans a Brand Standards Manual and provides on-site pre-opening and opening support from its operations representatives for at least five days. After opening, Summer Moon Franchising LLC continues to provide operational guidance, maintains the Summer Moon Operating System (if applicable), and advises on publicity and promotions. Franchisees have access to Summer Moon Franchising LLC staff for consultation via phone or email during business hours. The franchisor conducts periodic quality, service, and cleanliness reviews and provides updates to the Brand Standards Manual. Franchisees are invited to mandatory conventions and seminars. Summer Moon Franchising LLC also sells or facilitates the sale of approved and proprietary food and beverage products and provides promotional and digital marketing materials.

Initial Training Hours

104

Training Location

Driftwood, TX, and Austin, TX metropolitan area

Ongoing Support

After opening, Summer Moon Franchising LLC provides ongoing support to its franchisees through various channels. Summer Moon Franchising LLC maintains the Summer Moon Operating System (if applicable) and offers advice on planning publicity and promotions, including print and display advertising. Its staff is available for consultation via telephone, fax, email, or other electronic communication during regular business hours. Summer Moon Franchising LLC may also conduct periodic on-site quality, service, and cleanliness reviews and consult with franchisees on brand standards compliance, although it does not provide routine field supervision. Franchisees receive additions and supplements to the Brand Standards Manual and are invited to mandatory conventions and seminars at their own expense. Summer Moon Franchising LLC also sells or facilitates the sale of approved and proprietary food and beverage products and provides promotional and digital marketing materials.

Franchise Requirements

Ideal Candidate Profile

Summer Moon Franchising LLC typically seeks newly formed entities or individuals who wish to own and operate a franchised coffee shop. Ideal candidates usually have some prior experience in the restaurant or food service business sector.

Industry Experience Required

No

Management Experience Required

No

Sales Experience Required

No

Technical Skills Required

No

Operational Details

Location Type

Retail

Owner Participation

Hands-On

Territory Type

Limited

Territory Size Requirements

Summer Moon Coffee Shop territories are defined as a radius of approximately 3 miles around the approved location, measured by metes and bounds. However, these territories exclude any areas where Summer Moon Franchising LLC has existing contractual commitments and may be adjusted to be slightly larger or smaller based on the population surrounding the Summer Moon Coffee Shop.

Staffing Notes

Summer Moon Coffee Shops require a Controlling Principal, who must be approved by Summer Moon Franchising LLC, to supervise and manage all business aspects. For a new Summer Moon Coffee Shop, franchisees can also have a full-time General Manager; the Controlling Principal and General Manager may be the same person. The Controlling Principal, General Manager (if applicable), and one other approved person (the Training Team) must complete mandatory initial training. If a Controlling Principal or General Manager leaves, a qualified replacement must be appointed within 30 days. Summer Moon Coffee Shop franchisees are fully responsible for all employment matters, including hiring, firing, wages, and working conditions, as Summer Moon Franchising LLC does not act as a joint employer. All employees must receive training, supervision, adhere to grooming and dress codes, and wear logoed items. Managerial staff, including the Controlling Principal and General Manager, must sign confidentiality and non-compete agreements. Developers expanding to three or more Summer Moon Coffee Shops may be required to employ a multi-unit supervisor.