The Rush Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$72,300 - $240,900
Franchise Fee
$17,000
Min Cash Required
$5,000
Total US Locations
5
Business Summary
The Rush Coffee operates a full-service mobile coffee truck business, offering a variety of made-to-order, hand-crafted coffee and espresso drinks, specialty smoothies, Italian sodas, teas, shaved ice, and other beverages. The Rush Coffee also sells baked goods and desserts. These mobile units cater to community events, corporate gatherings, private catering, street fairs, farmers markets, and schools, providing refreshments for employee appreciation events, parties, and weddings.
Corporate History
The Rush Coffee Franchise Group LLC was formed as a California Limited Liability Company on June 15, 2021, and began offering franchises on July 29, 2021. The operating business, The Rush Coffee, LLC, an affiliate, was formed on January 3, 2017, and started operating its first mobile coffee truck in March 2017. The affiliate currently owns and operates two The Rush Coffee businesses of the type that are franchised.
Financial Overview
Investment Range
$72,300 - $240,900
Franchise Fee (Low)
$17,000
Franchise Fee (High)
$22,000
Minimum Cash Required
$5,000
Royalty %
5%
Equipment Costs (Low)
$40,375
Equipment Costs (High)
$191,250
Working Capital
$10,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The Rush Coffee Franchise Group LLC's auditors have issued an unqualified opinion on its financial statements, indicating that they present fairly in all material respects. However, the FDD highlights a special risk, stating that The Rush Coffee is undercapitalized and may not be able to meet pre-opening obligations to all franchisees.
Financing Details
The Rush Coffee does not offer any direct or indirect financing to its franchisees, nor does it guarantee any notes, leases, or other financial obligations. Franchisees are responsible for securing their own funding.
Performance Metrics
Total US Locations
5
Franchised Units
3
Corporate Units
2
Franchising Since
2021
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
The Rush Coffee has no litigation history to report. No administrative, criminal, or civil actions are currently pending or have been concluded against The Rush Coffee, its predecessors, or its executives.
Bankruptcy History
The Rush Coffee has no bankruptcy history to disclose. Neither The Rush Coffee, its predecessors, nor its executives have been involved in any bankruptcy proceedings.
Agreement Terms
Initial Term
5 years
Renewal Term
5 years
Renewal Conditions
To renew their franchise agreement, The Rush Coffee franchisees must ensure that The Rush Coffee is still offering franchises at the time of renewal and provide written notice of their intent to renew between six months and one year before the current term ends. They must be in good standing, meaning they have not defaulted on their agreement or any other agreements with The Rush Coffee or its affiliates during the preceding term. Franchisees must also refurbish their mobile coffee truck and any other aspects of their business to meet The Rush Coffee's then-current brand standards, color schemes, and system requirements. They are required to sign The Rush Coffee's current franchise agreement, which may have different terms, pay a renewal fee equal to 50% of the then-current initial franchise fee, and comply with all current qualification and training requirements. Additionally, franchisees must sign a general release of any claims against The Rush Coffee and its representatives.
Training & Support Program
Franchisor Assistance
The Rush Coffee provides franchisees with pre-opening assistance, including approving their mobile coffee truck vehicle and providing branding specifications for it. The Rush Coffee supplies standards and lists of approved suppliers for all necessary equipment, fixtures, inventory, and products, and offers a listing of all authorized products and services. Before opening, The Rush Coffee provides final written approval and two days of free onsite assistance for the grand opening. It also approves the franchisee's Designated Manager and provides an initial tuition-free training program covering orientation to the System Standards, customer service, operational management, financial management, computer software use, advertising/marketing, and reporting procedures. After the business opens, The Rush Coffee maintains and updates System Standards and the list of authorized products and services. It provides initial training for replacement staff and managers (for a fee) and may offer additional ongoing training programs. The Rush Coffee may investigate and help resolve disputes between franchisees and offers continuing advice and assistance in operating the business. It also provides updates to the Operating Manual, reviews franchisee advertising materials, and may set product pricing to promote system uniformity. Additionally, The Rush Coffee approves any replacement Designated Manager and will maintain and administer a national Marketing Fund if one is established in the future.
Initial Training Hours
80
Training Location
Corporate headquarters in San Marcos, California
Ongoing Support
After opening, The Rush Coffee provides ongoing support to its franchisees by maintaining and updating System Standards and the list of authorized products and services. It offers initial training for replacement staff and managers, although this comes with an additional tuition fee. The Rush Coffee may also provide additional and ongoing training programs for staff and managers as reasonably required. It can investigate and work to resolve disputes between franchisees if they are unable to do so themselves. The franchisor offers continuing advice and assistance in operating the franchised business and provides updates and changes to the Operating Manual. The Rush Coffee may review franchisee advertising materials before implementation and sets pricing for products to promote system uniformity and consistency. It also approves any replacement Designated Manager and, when established, will administer a national Marketing Fund.
Franchise Requirements
Ideal Candidate Profile
The Rush Coffee seeks individuals who meet its educational, managerial, and business standards. Ideal candidates should possess a good moral character, strong business reputation, and credit rating, along with the aptitude and ability to successfully conduct The Rush Coffee franchised business. While not required, The Rush Coffee strongly recommends that franchisees personally participate in the direct day-to-day operations. The Rush Coffee also offers a discount on the initial franchise fee to qualifying U.S. military veterans.
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Mobile
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
The Rush Coffee defines its protected franchise territories as either a specific 30-mile geographic radius or an area containing a population of 250,000 persons, whichever is smaller. While the territory is considered protected for the specific mobile coffee truck concept, The Rush Coffee explicitly states that franchisees do not receive an exclusive territory and may face competition from other concepts, alternate distribution channels (like internet sales), or 'Special Accounts' (customers whose facilities are not confined to a single territory) operated or licensed by The Rush Coffee within the same area.
Staffing Notes
The Rush Coffee requires each franchised business to maintain a designated full-time manager who has successfully completed the initial training program and devotes their full time and energy to operating the business. This Designated Manager can be the franchisee themselves, or if the franchisee hires someone else for this role, that individual must be approved by The Rush Coffee and sign confidentiality, non-solicitation, and non-competition agreements. The franchisor strongly recommends that franchisees personally participate in the direct operations, even though it is not a strict requirement. The Operating Manual contains further details on staffing requirements, including hiring procedures, employee policies, and day-to-day employee management.