Travelin' Tom's Coffee Franchise

Financing Details

Travelin' Tom's Coffee does not offer direct financing to its franchisees. However, it facilitates financing for the purchase of the Beverage Entertainment Vehicle (BEV) and initial inventory through three third-party lenders: Eagle Financial Services, Inc., Auxilior Capital Partners, and Osgood Bank. For Auxilior Capital Partners, the franchisor may receive trade show sales and marketing support, as well as sponsorship fees for conventions, which can range from 0% to 1.5% of the principal amount for new loans and refinances. No consideration is received for franchisees using Osgood Bank or Eagle Financial Services, Inc. for financing. Loan terms, interest rates, and amounts financed are subject to change by these lenders. For example, Auxilior may finance the full purchase price of the BEV and initial inventory (minus a $20,000 down payment), with terms from 36 to 66 months and APRs ranging from 8.99% to 11.99%. Osgood Bank may finance the BEV and initial inventory over 60 to 72 months, with fixed APRs typically between 8.5% and 9.75% based on credit score. Eagle Financial Services, Inc. may offer 36-month loans at 10.99% for the BEV and initial inventory.

Litigation Summary

Travelin' Tom's Coffee has no litigation to report. Item 3 of the FDD states that no litigation is required to be disclosed.

Renewal Conditions

To renew their Travelin' Tom's Coffee franchise, franchisees must provide written notice between six and twelve months before the current agreement expires. They must be in good standing, meaning they are not in default of their franchise agreement or any other agreements with the franchisor or its affiliates, and have not received more than three default notices in the previous term. Franchisees will need to ensure their Beverage Entertainment Vehicle (BEV) and any Additional Equipment comply with current system standards, potentially requiring replacement, remodeling, repair, or upgrades at their own cost. They must also sign the franchisor's then-current successor franchise agreement and all related documents, which may have different terms, including higher royalties, and sign a general release of claims. A non-refundable renewal fee of $7,500 is also required.

Staffing Notes

Travelin' Tom's Coffee franchisees must designate one owner, who has at least a 51% ownership interest and voting power, as the Managing Owner. This individual is required to directly supervise and actively participate in the day-to-day operation of the Travelin' Tom's Business for at least the first 60 days. After this initial period, a franchisee may appoint a Designated Manager, subject to franchisor approval, to run daily operations. This Designated Manager does not need an ownership interest but must successfully complete the franchisor's Tom's Coffee Academy training program. If a Designated Manager is replaced, the new manager must also complete the training at the franchisee's expense. The franchisor does not control the day-to-day activities of the franchisee's employees or independent contractors. Franchisees are responsible for determining appropriate staffing levels, hiring, training, and supervising employees, paying all wages, benefits, and taxes. Employees must wear franchisor-approved uniforms (at the franchisee's or employee's cost). All employees and independent contractors who may access confidential information must sign a Confidentiality Agreement, and Designated Managers or non-equity officers must sign a System Protection Agreement. Franchisees must use their legal business entity name, not the franchisor's marks, on all employment-related documents.