World Traveler Coffee Franchise
Audited FinancialsRisk Score
Pending analysis
Investment Range
$429,000 - $587,000
Franchise Fee
$25,000
Min Cash Required
$40,000
Total US Locations
6
Business Summary
World Traveler Coffee Brands LLC offers franchises for fast-casual coffeehouses known as World Traveler Coffee Roasters Cafes. These cafes serve a wide variety of freshly roasted coffees and teas sourced globally, alongside specialty coffee beverages, pastry items, and coffee-related merchandise for both on-premises and off-premises consumption.
Corporate History
World Traveler Coffee Brands LLC was organized in California on April 17, 2023, and serves as the franchisor for World Traveler Coffee Roasters Cafes. Its affiliate, World Traveler Coffee Roasters, LLC, was organized earlier on May 15, 2020, and operates several company-owned cafes. World Traveler Coffee Brands LLC began offering its franchises for sale on July 26, 2023. Neither the franchisor nor its operating affiliate conducts any other business activities.
Financial Overview
Investment Range
$429,000 - $587,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$35,000
Minimum Cash Required
$40,000
Royalty %
5%
Marketing %
2%
Equipment Costs (Low)
$277,000
Equipment Costs (High)
$362,000
Working Capital
$50,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
World Traveler Coffee Brands LLC's financial statements for the period ending December 31, 2023, show no revenue or expenses, with a member contribution of $100,400. This indicates that World Traveler Coffee Brands LLC is a newly established franchisor and has not yet generated income or incurred operational expenses from its franchising activities as of that date. The auditors have expressed an unqualified opinion, meaning the financial statements are presented fairly, and no substantial doubt about the company's ability to continue as a going concern was noted.
Financing Details
World Traveler Coffee Brands LLC does not offer any direct or indirect financing options to its franchisees, nor does it guarantee any franchisee's notes, leases, or other obligations.
Performance Metrics
Total US Locations
6
Franchised Units
0
Corporate Units
6
Avg Square Footage
1,350
Franchising Since
2023
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
World Traveler Coffee Brands LLC has no litigation history to report as of the FDD issuance date of March 19, 2024.
Bankruptcy History
World Traveler Coffee Brands LLC has no bankruptcy history to report as of the FDD issuance date of March 19, 2024.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew, World Traveler Coffee Brands LLC franchisees must have consistently complied with their franchise agreement, committed no more than three material defaults over any 18-month period, and agree to renovate or modernize their cafe to meet current brand standards. They must also satisfy any current training requirements, pay a renewal fee, and sign a general release. Franchisees will enter into a new franchise agreement, which may contain terms and conditions materially different from their original agreement.
Training & Support Program
Franchisor Assistance
Before opening, World Traveler Coffee Brands LLC assists franchisees with site selection and design by reviewing proposed locations and providing standard architectural plans. Franchisees and up to two additional managerial personnel will receive approximately three weeks of initial training at the corporate office or a company-owned cafe in Roseville, CA, or virtually. A two-person team also provides on-site opening assistance for one week before and one week after the first cafe's opening. Franchisees are given access to operational manuals and a list of approved suppliers. After opening, World Traveler Coffee Brands LLC may offer consultation on administrative and operational issues, provide additional training programs for new staff (for a fee), and conduct inspections. Franchisees must participate in all designated promotional campaigns and may be required to attend an annual conference for a fee.
Initial Training Hours
168
Training Location
Corporate office or company-owned cafe in Roseville, CA, or via a virtual communication platform, or franchisee's location
Ongoing Support
After opening, World Traveler Coffee Brands LLC offers ongoing support through regular consultation and advice on administrative and operating issues. Franchisees can request additional training programs for new or replacement managerial personnel, for which a fee applies. The franchisor may also require franchisees and their managers to attend additional remedial training programs, also for a fee. Regular inspections of the cafe's operations, food, and facilities will be conducted. Franchisees continue to have access to updated operational manuals and may be required to attend an annual franchisee conference, for which a fee is charged.
Franchise Requirements
Ideal Candidate Profile
World Traveler Coffee Brands LLC seeks franchisees who will designate a Principal Owner. This Principal Owner must be acceptable to World Traveler Coffee Brands LLC, own at least 50% of the franchise, and dedicate their full time to the day-to-day operations of the World Traveler Coffee Roasters Cafe. Franchisees can designate a Cafe Manager to supervise operations, but the Principal Owner remains ultimately responsible. Additionally, all owners and their spouses must sign personal guarantees.
Industry Experience Required
No
Management Experience Required
No
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
retail
Owner Participation
Full-Time
Territory Type
Protected
Territory Size Requirements
World Traveler Coffee Brands LLC grants franchisees a Protected Area defined as a 0.5 to 3-mile radius around their World Traveler Coffee Roasters Cafe. The specific size is determined by factors such as demographics, population, income levels, nearby retail, road visibility, traffic, and proximity to other World Traveler Coffee Roasters Cafes or competitors.
Staffing Notes
World Traveler Coffee Brands LLC requires that each World Traveler Coffee Roasters Cafe be directly supervised by the Principal Owner or a Cafe Manager, or other trained supervisorial or managerial personnel. Franchisees are responsible for providing initial, additional, and remedial training programs for all their employees. All employees who will access confidential information must sign non-disclosure agreements, and all employees must wear designated uniforms. Franchisees have sole responsibility for all employment decisions, including hiring, firing, wages, and benefits, for their staff.