Join Our The Coffee Bean & Tea Leaf Franchise

OUR BRAND HERITAGE

Born and brewed in Southern California since 1963The Coffee Bean & Tea Leaf® is the oldest and largest privately-held specialty coffee and tea retailer in the United States. Fifty years on, our values haven’t changed. “Find Your Flavor” isn’t just a slogan; it’s a commitment to our customers and the foundation upon which we operate. Our handcrafted beverages are made to order and customized to the guest’s preference. Our Team Members know to listen and respond to each guest with a personalized beverage. The Coffee Bean & Tea Leaf® offers one of the most extensive selections of coffee and tea from around the world.

The franchisor is International Coffee & Tea, LLC. Franchisees will develop one or more “The Coffee Bean & Tea Leaf” stores or kiosks featuring premium coffee beverages, espresso drinks, premium teas, roasted coffee beans and blends, prepackaged coffees, prepackaged teas, baked goods, snacks and other food items and products, which may include but are not limited to coffee making equipment, cups, hats, t-shirts, miscellaneous branded items and other novelty items.

Training Overview: The franchisor will provide franchisees with a 15 day (as determined by the franchisor in its reasonable business judgment) initial training program for the Certified Training Manager, first General Manager, and, if franchisees have signed an Area Development Agreement, their Director of Operations. The Initial Training is held at the franchisor’s corporate headquarters in Southern California, at a Company-owned or affiliate-owned store in Southern California, or at some other location the franchisor may designate. In addition, the franchisor will provide a five-day training program for an owner and one other person designated by the franchisee and accepted by the franchisor. In addition, if franchisees are signing a Franchise Agreement for their first Store, the franchisor will send two members of its training or operations staff to the franchisee’s store for a period of 14 days beginning at or before the scheduled opening date of the store. The franchisor, in its discretion, may provide on an optional or mandatory basis, supplemental or additional training programs as it deems necessary or appropriate for the proper operation of the store(s), and in the case of mandatory training the franchisor may require franchisees, their Certified Training Manager and/or General Managers to attend.

Territory Granted: Franchisees may operate their store at a specific location which the franchisor accepts, as described in the Franchise Agreement. Franchisees will not receive an exclusive territory. However, during the term of the Franchise Agreement, the franchisor will not open or operate, or license others to own or operate, a “The Coffee Bean & Tea Leaf” store at any venue within a 0.25 mile radius of the franchisee’s store, except at Special Distribution Sites and except as permitted by the franchisor’s Reserved Rights.

Obligations and Restrictions: Although franchisees do not have to personally supervise the franchised business, the franchisor recommends that they personally supervise the operation of their store(s). Franchisees must employ and continue to employ throughout the term of the agreements at least one Director of Operations, one Certified Training Manager and, for each Store, one General Manager all of whom have successfully completed the training program, and in the case of the General Manager and Certified Training Manager, must be approved by the franchisor. Each of the above persons may have to agree to maintain the confidentiality of the trade secrets and may have to agree to the non-competition covenants. One person who has attended and completed Initial Training to the franchisor’s satisfaction, or who has been trained by a trainer certified by the franchisor, must be working at the store at all times while the store is open to the public. Franchisees must offer and sell all, and only, those goods and services that the franchisor has approved. No vending, gaming, pay telephone, automatic teller machine, internet kiosk or any other mechanical or electrical devices are permitted in the store without the franchisor’s prior written consent.

Term of Agreement and Renewal: The length of the initial franchise term is 10 years. Two five-year renewal terms are available, if requirements are met.

Financial Assistance: Neither the franchisor nor its affiliates offer direct or indirect financing. Neither the franchisor nor its affiliates guarantee a franchisee’s lease or any other obligation the franchisee may incur.

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RETAIL FORMATS

Traditional: Traditional street side locations and shopping malls represent the majority of The Coffee Bean & Tea Leaf cafes worldwide. Our retail design offers a modern, contemporary look coupled with a highly efficient back-of-house configuration. We have proven to be successful in locations big and small around the world.
Airports: The Coffee Bean & Tea Leaf has over 40 airport locations around the world. We offer the traveler a premium specialty coffee and tea experience wherever they may be, and successfully operate both in-line and free-standing cafes in the airport and travel channels.
University Campuses: We have a growing number of locations on University Campuses. The Coffee Bean & Tea Leaf provides an environment for students and staff to work and socialize while enjoying our beverage and food offering.
Military Bases: On Military Bases, We are proud to serve members of the United States military and their families.
Store in Store: The Coffee Bean & Tea Leaf offers grocery shoppers Store in Store cafes and kiosks that provide our world class beverages as well as retail products available on grocery store shelves across the United States. For inquiries regarding wholesale distribution, please visit the For Business section of our website.
Hotels & Casinos: The Coffee Bean & Tea Leaf is also featured in some of the leading Hotel and Casino properties worldwide. Our scalable retail footprint allows us to deliver a premium Beverage and Food option for fine Hotel and Casino properties.

Investment Tables

Estimated Initial Investment
Name of Fee Low High
Initial Franchise Fee $15,000 $25,000
Lease for Store $2,000 $12,000
Design & Plans $20,000 $40,000
Leasehold Improvements $7,000 $150,000
Signage $2,000 $20,000
Furniture, Fixtures and Equipment $75,000 $175,000
Point-of-Sale (POS) System $15,000 $35,000
Initial Inventory $2,500 $32,000
Grand Opening Promotion $0 $10,000
Permits and Security Deposits $750 $6,500
Insurance $1,000 $10,000
Professional Fees $1,000 $15,000
Training Expenses $12,000 $25,000
Additional Funds – three month period $30,000 $60,000
ESTIMATED TOTAL* $183,250 $615,500

*The estimated initial investment range covers from a kiosk up to a store. See FDD for more details.

Other Fees
Type of Fee Amount
Royalty Fee 5.5% of Gross Revenues, or the monthly Guaranteed Minimum Royalty (1/12th of $25,000 for a full service store, or $12,500 for a Kiosk)
Central Marketing Fee 2% of Gross Revenues
Art Work and Promotional Materials Fee 0.5% of Gross Revenues
Initial On-Site Assistance Then-current reasonable training fee (currently $150-$450 per day) plus our out-of-pocket expenses including travel, meals and lodging, but excluding salary (currently, up to $2,000).
Additional On-Site Assistance The franchisor’s out-of-pocket expenses (including travel, meals and lodging) to send 1 or more members of its staff to the Development Area. Franchisees must also reimburse the franchisor for its direct and indirect salary and related payroll costs for its representatives.
Optional Training Courses The franchisor’s then-current reasonably training fee plus expenses
Manual Replacement Charge Franchisees must pay our then-current charge for replacement of the Manuals if franchisees require a hardcopy replacement.
Franchise Transfer Fee Reimburse the franchisor’s direct and indirect costs and expenses, including attorneys’ fees in connection with reviewing, granting and documenting the franchisor’s consent, but not less than $2,500.
Audit Cost of audit plus attorneys and accountants fees and costs (including travel, room and board).
Insurance Amount of unpaid premiums
Approval of Suppliers Franchisees must pay the franchisor’s costs to review a new supplier, including inspection of the supplier’s facilities, equipment, product testing, etc. The costs are difficult to predict and depend on the supplier and the item(s) proposed to be supplied.
Developer Page Fee The then-current fee
Review of Revised Entity Information The franchisor’s direct and indirect costs, including attorneys’ fees, to review revised entity information
Interest and Late Charge for Late Payments $100 charge for each late payment plus 1.5% per month interest or the maximum amount permitted by law for each month the payment is delinquent
Reimbursement of the Franchisor’s Attorneys’ Fees and Expenses As incurred
Indemnification Varies

The above information has been compiled from the FDD of The Coffee Bean & Tea Leaf. Year of FDD: 2018.

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