Break Coffee Co is a small commercial coffee service franchise with only 8 franchised units and 2 company-owned locations. The franchise targets offices and commercial centers with 20+ employees. The system has a high royalty rate of 12% with minimum monthly requirements and a 2% brand fund contribution. Initial investment ranges from $102,525-$146,000, including a $59,500 franchise fee and required purchase of 6 coffee machines ($25,000-$30,000). The franchise provides Item 19 financial performance data showing average gross sales of $151,804 with significant variation (ranging from $10,695 to $289,045). Territory protection is exclusive based on approximately 2,000 businesses with 20+ employees. The franchise agreement has a 10-year initial term with one 10-year renewal option. Key concerns include the very small system size, high fees relative to disclosed performance, and strong franchisor-favorable contract terms including spouse guarantees and extensive post-termination restrictions.
Generated from 2025 Franchise Disclosure Document
AI-generated from FDD analysis — use as a checklist with your attorney
Total startup costs, working capital, and financial requirements
Training, marketing support, technology, and operational assistance
Royalty, marketing, technology, and other ongoing fees
Revenue data, P&L estimates, and financial projections
Lawsuits, disputes, and legal risk assessment
Territory rights, term length, non-compete, and transfer rules
82 legal provisions scored on a franchisee-friendliness scale
Unit growth trends, exit rates, and system trajectory
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