Risk Score
Pending analysis
Investment Range
$581,500 - $2,093,000
Franchise Fee
$25,000
Total US Locations
100
Business Summary
Ziggi's Coffee Franchise, LLC offers franchises for retail coffee shops that sell gourmet specialty coffee, espresso, tea, fruit smoothies, dirty soda drinks, energy drinks, fresh sandwiches and wraps, and other food and drink items, along with packaged coffee and coffee-related merchandise. The coffee shops focus on utilizing socially responsible local sources for fresh ingredients and offer a broad array of flavor options compared to many competitors. There are two primary models available: a drive-thru-only format and a larger café with a drive-thru, which can be freestanding or an endcap location.
Corporate History
Ziggi's Coffee Franchise, LLC was established on April 12, 2016, as a Colorado limited liability company, and began offering and selling franchises under the 'Ziggi's Coffee' name in May 2016. The company's business methods and brand marks were acquired from BEC Longmont, Inc., an affiliate that had been operating coffee retail businesses since August 2004. This foundation allowed Ziggi's Coffee to develop its distinctive business format. The company builds on its principals' combined experience of over 52 years in the coffee retail and wholesale industry.
Financial Overview
Investment Range
$581,500 - $2,093,000
Franchise Fee (Low)
$25,000
Franchise Fee (High)
$40,000
Royalty %
6%
Marketing %
1%
Equipment Costs (Low)
$432,500
Equipment Costs (High)
$1,597,000
Working Capital
$40,000
Audited Financials
Yes
Offers Financing
No
Audit Opinion
Unqualified opinion
Financial Health Notes
The financial condition of Ziggi's Coffee Franchise, LLC, as shown in its financial statements, raises questions about the franchisor's ability to provide services and support to its franchisees. This concern is highlighted in the FDD's special risks section.
Financing Details
Ziggi's Coffee Franchise, LLC does not offer any direct or indirect financing options to its franchisees. Additionally, the franchisor does not guarantee any notes, leases, or other financial obligations for the franchisee. Franchisees are expected to secure their own funding for the initial investment and ongoing operations.
Performance Metrics
Total US Locations
100
Franchised Units
93
Corporate Units
7
Avg Square Footage
1,216
Franchising Since
2016
Legal & Compliance Analysis
Recent Litigation
No
Bankruptcy
No
Litigation Summary
Ziggi's Coffee Franchise, LLC has no litigation to report in Item 3 of its Franchise Disclosure Document. This means that, to the franchisor's knowledge, there have been no administrative, criminal, or civil actions that are required to be disclosed regarding the franchisor, its predecessors, affiliates, or key management personnel.
Bankruptcy History
Ziggi's Coffee Franchise, LLC has no bankruptcy history to report for itself or its key personnel. Item 4 of its Franchise Disclosure Document states that no bankruptcy information is required to be disclosed.
Agreement Terms
Initial Term
10 years
Renewal Term
10 years
Renewal Conditions
To renew their franchise agreement, Ziggi's Coffee franchisees must provide written notice at least 180 days before the agreement expires. They need to be in compliance with all terms of the Franchise Agreement, pay a successor franchise fee, and sign the franchisor's then-current Franchise Agreement, which may have different terms. Franchisees may also need to renovate their coffee shop if required by Ziggi's Coffee.
Training & Support Program
Franchisor Assistance
Ziggi's Coffee Franchise, LLC provides extensive assistance to its franchisees. Before opening, Ziggi's Coffee helps with site selection criteria, reviews and approves leases, advises on build-out designs, equipment specifications, and menu items, and provides an initial training program. Franchisees also receive an Operations Manual and on-site pre-opening training for their first shop. After opening, Ziggi's Coffee provides continued on-site training for the first 12 days for a franchisee's first shop, telephone or email consultation on operations, and access to advertising and promotional materials. Ziggi's Coffee also offers ongoing updates on menu items, industry information, and may provide training for replacement managers, potentially for a fee.
Initial Training Hours
67
Training Location
Franchisor's training facility in Mead, CO, at an operating Ziggi's Coffee Shop, and online
Ongoing Support
After a Ziggi's Coffee Shop opens, for a franchisee's first location, Ziggi's Coffee provides approximately 450 man-hours of continued on-site training during the first 12 days following the opening. Upon reasonable request, Ziggi's Coffee also offers telephone or email consultations regarding operations, management, product quality control, and customer relations. Franchisees gain access to advertising and promotional materials and receive ongoing updates on menu items, industry information, and may provide training for replacement or additional managers, potentially for a fee.
Franchise Requirements
Industry Experience Required
No
Management Experience Required
Yes
Sales Experience Required
No
Technical Skills Required
No
Operational Details
Location Type
Retail
Owner Participation
Absentee Allowed
Territory Type
Limited
Territory Size Requirements
Ziggi's Coffee does not grant franchisees a traditional geographic area around their shop location. However, if a location is not chosen at signing, Ziggi's Coffee will designate a 'Target Area' by zip codes, street boundaries, city, county, or state, where the franchisee should seek a location. Additionally, franchisees have a right of first refusal for new Ziggi's Coffee Shops opening within a one-mile radius of their approved shop location.
Staffing Notes
Ziggi's Coffee Franchise, LLC requires franchisees to recruit, hire, fire, and supervise their own employees, including a Designated Manager who must manage the coffee shop full-time. Franchisees are solely responsible for setting compensation, work schedules, and conditions for their staff. While Ziggi's Coffee provides some training programs, it emphasizes that these are for brand protection and not to control daily operations. For a franchisee's first location, Ziggi's Coffee offers pre-opening and initial on-site support, including approximately 450 man-hours of continued on-site training from their management team in the first 12 days after opening.