He also completed coursework for the Certified Commercial Investment Member (CCIM) designation, comprised of state-of-the-industry commercial real estate coursework in financial and market analysis, investments, and negotiation. 14. Your results may differ. All of the Stores whose data were used in the table above were open for at least 13 months during the measured period. The Eckleses got the idea for their specialty coffee shop when they saw a man building a drive-thru coffee hut while living in California. 3. Definition: A discount or other incentive offered to military veterans who buy a franchise with this company. Here's how franchisees can tap into consumer behaviors using strategic messaging and offers that speak to clients wants and needs. Email franchisechatterblog@gmail.com, Your website and you have been instrumental in finding this franchise opportunity and I am overwhelmingly grateful. (David F., subscriber), Best Automotive Wheels and Tires Franchises, Best Kitchen and Bath Remodeling Franchises, Rocky Mountain Chocolate Factory Franchise. 15. As the senior vice president of development, Smiths experience and leadership will help underscore the companys commitment to achieving growth goals while providing innovative ways for customers to get amazing drinks, amazingly fast. Scooters Coffee was founded as Scooters Java Express in 1998 by Don and Linda Eckles in Bellevue, Nebraska. Scooter's Coffee. Required fields are marked *, Previous post: FDD Talk: Premier Martial Arts Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Next post: FDD Talk: CycleBar Franchise Costs, Fees, Average Revenues and/or Profits (2022 Review), Is Franchising a Path for You? Over the next few decades, Scooters continued to grow around the U.S. Today, there are Scooters Coffee shops across more than 23 states. This is a total growth of 71 outlets over a six-year time length. Last updated on November 22, 2022 by Franchise Chatter Leave a Comment in Coffee Franchise, FDD Talk: Food Franchises, Franchise Earnings. This role builds and leads a friendly, service-oriented barista team, sets a high-energy work pace, drives sales, increases profit, and demonstrates an engaged management style. The Midwest-based drive-thru coffee franchise reached the 300-store mark after seeing increases in average unit volume across the system in recent years, including 43 new stores in 2020. Scooter's Coffee General Information. Same-store sales growth compares net sales (gross sales minus discounts and refunds) in calendar year 2020 to net sales in calendar year 2021. There were 189 Kiosk and 77 Coffeehouse franchised Stores open and operating as of December 31, 2020. In early July 2021, Nathan Lester joined Scooters Coffee as senior director of drive-thru innovation. The first Scooters Coffee store was a success and by 2001, there were five shops in operation. In this article were looking at Scooters Coffee from the perspective of its latest Franchise Disclosure Document to find out whether you should invest in this franchise. Scooters Coffee Continues Growing in Iowa, Scooters Franchise Owner Salary vs. Competition. Coffee, espresso, smoothies, pastries, breakfast items. It has a lot to offer with many locations, a high volume of unit sales, and strong company culture. Entrepreneur and its related marks are registered trademarks of Entrepreneur Media Inc. The Initial Franchise Fee is due and paid by . Fastest-Growing Franchises (U.S. & Canada). For each year, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December 31, 2020. Cash Available for Investment0-$99,999$100,000 - $199,999$200,000 - $299,999$300,000+. 11. Number and Percentage That Attained or Exceeded the Average: 83/48%, Number and Percentage That Attained or Exceeded the Average: 84/49%, Number and Percentage That Attained or Exceeded the Average: 79/46%, Number and Percentage That Attained or Exceeded the Average: 35/47%, Number and Percentage That Attained or Exceeded the Average: 37/49%, Number and Percentage That Attained or Exceeded the Average: 34/45%. The information presented in this Part 1 is based on information Participating Stores provided to Scooters Coffee. 4. This statement includes average Gross Sales for the first full calendar month of operations for all franchised Kiosk Stores and Coffeehouse Stores that opened for operation in each of calendar years 2017 to 2020. Scooter's Coffee has the franchise fee of up to $40,000, with total initial investment range of $794,000 - $1,264,500. The term Labor Costs includes wages for in-store employees including the manager and payroll taxes, but does not include employee benefits. The information presented in this Part 2 is based on information Participating Franchisees provided to Scooters Coffee. 5 Tips for First-Time IFA Convention Attendees, How Franchisees Can Use Technology to Change Consumer Behavior. Never miss a beat when you sign up to receive our newsletter. In each section, the franchised Stores that meet the criteria in this Item 19 are referred to as Participating Stores (for all such franchised Stores), or for a particular type of Store, Participating Kiosk Stores or Participating Coffeehouse Stores.. The Initial Franchise Fee for an individual Scooter's Coffee Store, regardless of the type of Store you purchase, is $40,000 for each Store. Scooters Coffee has partnered with third-party financial lenders that may help qualified franchisees cover the costs of the franchise fee, startup cost, equipment, inventory, accounts receivable, payroll. Browse franchises that are similar to Scooter's Coffee. Scooters Coffee ranked No. Franchise Business Review named Scooter's Coffee a Top 50 Franchise in its 2018 Franchise Satisfaction Awards, among the top 50 in its 2018 list of Top Multi-Unit Franchises and one of the 2017 Top Franchises for Women. Scooters Coffee has not verified or audited this information. 5. At the time, coffeehouses were popping up everywhere and the Eckleses wanted to combine quality coffee with drive-thru convenience. 2. The festivities included support for the Houston Humane Society. **This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. You also agree to our Privacy Policy. That same year, the Eckles decided to start franchising the Scooters Coffee concept. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee. Earnings Before Depreciation, Interest, Taxes, and Debt Service: $170,116 (21.23%), Earnings Before Depreciation, Interest, Taxes, and Debt Service, Earnings Before Depreciation, Interest, Taxes, and Debt Service: $172,443 (19.48%), Your email address will not be published. Find out below. Scooters Coffee used information from sales reports submitted by the Participating Stores in calculating royalties, and data obtained from approved point-of-sale register systems. Section V Presentation and analysis of Scooters Coffees financial performance representations (average revenues and/or profits), based on Item 19 of the companys 2022 FDD, including information on the: Section VI Key ratios, comparables, computations, and analyses for the Scooters Coffee franchise opportunity (, Site Concept Plan, Preliminary Due Diligence, and Site Work: $44,000 to $477,000, Free-Standing Building and Leasehold Improvements: $264,000 to $796,000 (not including the purchase of land), Architectural and Engineering Fees: $35,000 to $66,000, Equipment, Fixtures, and Furniture: $178,000 to $235,000, Point-of-Sale System and Software: $12,000 to $19,000, Initial Training (travel and living expenses): $5,000 to $8,000, Opening Inventory, Supplies, and Smallwares: $25,000 to $27,000, Additional Funds (3 months): $0 to $86,000, Total Estimated Scooters Coffee Franchise Costs (Coffeehouse Store): $666,500 to $1,847,500, Site Concept Plan, Preliminary Due Diligence, and Site Work: $176,000 to $397,000, Free-Standing Building and Leasehold Improvements: $272,000 to $362,000 (not including the purchase of land), Architectural and Engineering Fees: $35,000 to $62,000, Equipment, Fixtures, and Furniture: $168,000 to $176,000, Total Estimated Scooters Coffee Franchise Costs (Kiosk Store): $794,500 to $1,264,500, Local Marketing and Advertising Commitment: none currently, although Scooters Coffee may require you to spend up to 2% of Net Sales for local marketing and advertising in the future. DESCRIPTION. Visit OwnAScooters.com today to learn more about joining the Scooters team and making your dreams a reality. How much money can you make with a Scooters Coffee franchise? Net Sales are measured by taking Gross Sales and subtracting customer discounts and refunds to customers. On grand opening day, the Katy location invited customers to bring their pups with them to enjoy a Pup Cup, a delicious mini cup of whipped cream. **This is historical representation of what some of our franchisees have earned as described further in Item 19 of the FDD. Still, Scooters Coffees model of small drive-thru kiosks provided customers with an outlet to fill their demands for their favorite drinks with efficient, safe service. According to Tim Arpin, vice president of franchise sales for Scooters Coffee, We have always been confident that the Scooters Coffee model was one that could not only drive sustainable profit margins but could provide amazing value to our customers. Scooters Coffee used information from sales reports submitted by the Participating Stores in calculating royalties, and data obtained from approved point-of-sale register systems. The term Gross Margin means the Net Sales minus the Cost of Goods Sold. Showcasing what the future of Scooters Coffee will look like, the Katy site offers the first of many new features for the brand, including exterior digital menu boards, a dual-lane drive-thru, and much more. Approaching 500 locations across the U.S., Scooters Coffee provides customers with responsibly sourced coffee served by amazing people, all from a convenient 664 square foot drive-thru kiosk. How profitable is a Scooters Coffee franchise? Why Drink Franchises are the Easiest Franchises to Own, Kim Ellis Joins Scooters Coffee as Chief Development Officer to Cultivate Franchisee Success as Company Continues Nationwide Expansion. Franchise Chatter is reader-supported. Same-store sales for locations open for at least 13 months is measured each year. The franchise grew by almost 50 locations in 2020, while experiencing historic same-store sales growth. Those are exciting numbers for entrepreneurs looking at a Scooters Coffee franchise, especially in light of the relatively low investment required to launch a location. The Eckles were inspired to open their own coffee shop while they were living in California where they witnessed the growth of the specialty coffee industry and drive-thru coffee concepts. This represents a 29% profit margin (adjusted EBITDA margin). Your results may differ. Scooters Coffee started franchising in 2002 and is franchised by Scooters Coffee LLC, headquartered in Omaha, Nebraska. What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Scooters Coffee has been serving up delicious coffee, tasty treats, and genuine smiles since 1998. Number and Percentage That Attained or Exceeded the Average: 59/42%, Number and Percentage That Attained or Exceeded the Average: 44/44%, Number and Percentage That Attained or Exceeded the Average: 42/50%, Number and Percentage That Attained or Exceeded the Average: 39/56%, Number and Percentage That Attained or Exceeded the Average: 28/55%, Number and Percentage That Attained or Exceeded the Average: 23/56%, Number and Percentage That Attained or Exceeded the Average: 18/49%, Number and Percentage That Attained or Exceeded the Average: 38/51%, Number and Percentage That Attained or Exceeded the Average: 32/51%, Number and Percentage That Attained or Exceeded the Average: 27/50%, Number and Percentage That Attained or Exceeded the Average: 22/42%, Number and Percentage That Attained or Exceeded the Average: 19/49%, Number and Percentage That Attained or Exceeded the Average: 17/53%, Number and Percentage That Attained or Exceeded the Average: 16/52%. The term Rental Expense includes the total amount of payments to the franchisees landlord, including base rent, common area maintenance, real estate taxes, and insurance. The 29% adjusted EBITDA margin is on the higher end compared to similar franchises as per our intelligence (~25-27% industry average). Scooter's Coffee has built a reputation for delivering "amazing drinks, amazingly fast." Start a Scooter's Coffee Franchise in 2023 - Entrepreneur Scooter's Coffee Coffee, espresso, smoothies, pastries, breakfast items 2023 Franchise 500 Rank #59 Ranked #66 last year See. Scooter's Coffeehas been ranked in Entrepreneur's Franchise 500 multiple times in recent years. Yet, this adjusted EBITDA does not mean you will earn 21.2% of the total revenue as the net profit. This statement includes the average customer ticket for Kiosk and Coffeehouse franchised Stores that were open during the entire 12-month period ending December 31, 2021 (the Measurement Period) and that provided complete information Scooters Coffee requested respecting such costs. 11. Are you eager to see what else is out there? Last updated on August 29, 2022 by Franchise Chatter Leave a Comment in Coffee Franchise, FDD Talk: Food Franchises, Franchise Earnings. Which Franchise Is Right for You? Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts. Subscribe, save & smile. The same-store sales growth figures below show the change in the Net Sales (as defined above) earned by Participating Stores during the 2019-2020 calendar year when compared with the Net Sales earned by the same Stores during the prior calendar year, broken down by type of Store (Kiosk or Coffeehouse). For new Scooter's Coffee locations, the brand may offer pre-approved franchise locations tested for viability and demographics. The Human Bean presents total costs and average net profits exclusive of owner income and owner expenses, meaning owner travel expenses and owner use of a company car, the site states. With more than 35 years of experience in information technology, Heyman has successfully led digital transformation for entrepreneurial endeavors and large public enterprises. In mid-February 2021, Scooters Coffee reported that despite the ongoing challenges of the COVID-19 pandemic, the brand continued its upward trend in 2020 by surpassing a major milestone with its 300th franchise location. 17 of them (or 40%) had an AUV that met or exceeded $1,179,980, (2) 19 of them (or 44%) had a Net Profit Margin and EBITDA that met or exceeded the average. In 2012, there were a total of 100 franchises operating. Your results may differ. Were extremely proud to have had an impact with our customers and to have provided security to our franchisees, along with optimism and excitement to those considering franchising with Scooters Coffee in the future.. Opening a coffee shop gives its owner many rewards. while meeting budget expectations and achieving a $100,000 profit . There has never been a better time than now to join the Scooter's Coffee family! This Item 19 is separated into five sections. The term EBITDA is the estimated earnings before deductions for payments and costs of borrowing to finance the Initial Fees in Item 5, Initial Investment in Item 7, and ongoing investments in the Store and before deductions for depreciation on the Initial Fees in Item 5, Initial Investment in Item 7, and ongoing investments in the Store. Compared to the year before, Scooter's Coffee stores saw an increase of more than 26%. The median earnings for a top-performing shop are around $184,000. 12. Lester also oversaw McDonalds innovation restaurants, implementing breakthrough practices in live environments. The financial performance figures do not reflect all of the costs of sales, operating expenses, or other costs or expenses that must be deducted from net revenue or net sales figures to obtain your net income or profit. 10500 Sapp Brothers Dr, Omaha, NE 68138 6. The initial franchise fee will start at $25,000-35,000, with additional expenses depending on the location and size of the shop. Arpin added, We couldnt be more thrilled to report such impressive growth, especially given the challenges introduced in 2020. In working across the retail spectrum, he brought a business focus to IT, making it a value-driver that resulted in significant growth for organizations. Scooter's Coffee is a drive-thru franchise that has been serving world-class coffee for more than 20 years and has more than 240 locations in 15 states across the nation. According to StartMyCoffeeShop.com, the average coffee franchise owner will take home $66,000 a year. 4. A typical franchise agreement runs for ten years. Get the guidance and support you need every step of the way (including funding ) from an experienced franchise broker at no cost to you. Scooters Coffee has not verified or audited this information. The term Average Customer Ticket means the total amount of Gross Sales during the Measurement Period, divided by the total amount of customer transactions. And entrepreneurs considering buying a franchise want to know how much money they may stand to make. For every Pup Cup provided on April 22, the Katy location donated $2 to the Houston Humane Society. On average, you would need to invest $1,143,250 to open a new Scooters Coffee restaurant. Do You Have Enough Capital to Fund a Franchise? Only then you can pay yourself dividends. 8. The median across all shops is around $90,000. This Item 19 also does not include any financial performance information for any of Scooters Coffees affiliate-owned Stores. Of these 217 locations, 112 (or 51.61%) of them had Same-Store Net Sales Growth Over Prior Year that met or exceeded 24.32%. More about joining the Scooters team and making Your dreams a reality years experience. Represents a 29 % profit margin ( adjusted EBITDA does not include any performance. For delivering `` amazing drinks, amazingly fast. from sales reports by... Iowa, Scooters only included franchised Kiosk and Coffeehouse Stores that remained open and operating as of December,... Continues Growing in Iowa, Scooters only included franchised Kiosk and Coffeehouse Stores that remained and. Means the net sales are measured by taking Gross sales and subtracting customer discounts and refunds customers. Money can you make with a Scooters Coffee as senior director of drive-thru innovation total of franchises... 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