There is no doubt that America has a massive demand for coffee and coffee-related products. That’s where coffee shop franchises, like Starbucks, come into play.
In fact, according to Statista, the coffee market in the United States is expected to grow by 6.34% from 2022 to 2025.
With that rise in demand for coffee, it’s not surprising that there has also been a rise of interest in franchising coffee shops. And for good reason!
By Jackalyn Beck.
* The information here may have changed since first published.
We recommend that you always verify fees, investment amounts, and offers with the business opportunity directly prior to making a decision to invest.
According to smallbusiness.chron.com, Owners of small to medium-sized coffee shops can make an estimated average annual income from $60,000 to $160,000.
Of course, that is an average and will vary based on how long based on details like how you have been in business and your area.
So, whether you are looking into opening a franchised coffee shop in the United States or are just wanting to learn about this booming industry, this list is for you!
Large And Best Known Coffee Franchises In The United States Of America
There are many massive coffee franchises in the states. Quite a few have probably already popped into your head.
Here’s a quick list of some of the most notable ones:
- Starbucks
- Dunkin’ (previously called Dunkin’ Doughnuts)
- Caribou Coffee
- Peet’s Coffee
- Sheet’s
While you can definitely look into franchising with a large company, remember that you will also pay for that name recognition in one way or another.
So, for this article, I’ve focused on companies that are less widespread.
Let’s take a look at 10 other coffee shop franchises in the United States.
Scooters Coffee
Scooter’s Coffee is a drive-thru based coffee shop that has grown significantly in the past few years.
According to their website, they had a “24.32% year-over-year same store sales growth (2020 – 2021).”
In fact, I live in a fairly rural area and we just got one of these in my town.
What I like the most about this franchise is how convenient it is since the franchise is based on their drive-thru.
However, the store in my area still offers a nice covered seating area where people can enjoy their coffee.
There is actually a fair bit of information on YouTube about franchising with Scooters, including this video from Franchise Direct.
They also provide a lot of information on their website and seem to be very upfront about their franchising fees.
Tim Hortons
Tim Hortons is huge in Canada but there is plenty of opportunity to franchise in the U.S. market.
As of December 2022 there are actually 623 Tim Horton locations in the United States but those are mainly in northern states like Maine and Ohio. They have also set priority states to franchise in that include Texas and California.
Many other southern states, like Oklahoma (my home state), and Georgia are completely new markets.
So there is plenty of opportunity for growth with Tim Hortons!
They clearly lay out some very specific requirements for franchising with them.
The things mentioned directly on their franchising website include that you must have a minimum of $500,000 in liquid assets and a net worth of at least a $1,500,000 net worth.
Dutch Bros
Dutch Bros is taking America by storm right now! One of the towns near me got a Dutch Bros and for the first month the line was so long it disrupted traffic.
I personally don’t like much of their coffee since it is a bit sugary for my taste, but I have some relatives that are massive fans (and would be appalled that I don’t like this franchise).
Many people are raving fans for this drive-thru coffee shop so it is no wonder that it has grown so much in the past few years.
They don’t have many up-front details about franchising and you have to contact them directly for more information.
According to TopFranchise.com there are 292 existing locations in 2022 and starting investments to open one are at least $150,000.
PJ’s Coffee
PJ’s Coffee is a franchise that began in New Orleans and is quickly expanding.
While their franchising website gives a wide range of possible costs. At the low level, the initial investment is just $206,875 but it can be up to $1,024,000.
They have only 162 locations in just 14 states, so there are plenty of open territories. They also have a public list of the states they are actively targeting.
If you are a veteran you might give PJ’s extra consideration since they are doing a 2023 Veterans Franchise Giveaway.
Dunn Brothers Coffee
Dunn Brothers Coffee is headquartered in Roseville, Minnesota and, as of 2022, has 57 locations.
Small batch, on-location roasting is key to their business model. So, if you are interested in specialty coffee but want to open a franchised coffee shop, this might be a good fit for you.
In fact, roasting is mentioned as part of the training for franchisees.
The Dunn Brothers Coffee website even mentions that their coffee is “never more than 5 days old.”
For a large coffee chain that is pretty impressive!
Dunn Brothers Coffee requires franchise owners to have $100,000 in liquid assets and at least a $500,000 net worth. They also estimate that the cost of ownership is from $501,620 to $739,232, including things like licensing and start-up fees.
The Human Bean
The Human Bean is another drive-thru based coffee shop. The Human Bean opened its first store in Oregon back in 1998 and has seen quite a bit of growth in recent years.
I’m a sucker for puns so I love the name of this franchise!
One of their biggest selling points for potential franchisees is that they apparently don’t charge royalty fees. Instead, their site mentions that they earn revenue from bulk coffee sales.
Their initial startup costs are also reportedly low at $30,000 for the franchise fee. However, the full startup costs are from $346,825 to $835,225.
Ziggi’s Coffee
Based out of Colorado, Ziggi’s Coffee now has over 58 locations in 12 states.
Naturally, their shops are mainly around Colorado but they also have locations in other northern states, like Illinois.
While they don’t have a ton of locations in the south U.S. they do have one store in Texas.
Like other shops Ziggi’s has a drive-thru based option but, depending on the market, you can also open a shop with a drive through and cafe area.
For them to consider you as a franchisee, you will need to have at least $150,000 in liquid assets.
Ziggi’s site says that the total investment for a new franchise ranges from $199,700 to $910,500.
Ellianos Coffee
Ellianos Coffee is another drive-thru based coffee franchise.
The business was founded in 2002 and they currently have 19 stores in just three states.
Their headquarters is in Lake City, Florida and they have locations all around the southeastern United States. They are actively looking to expand into new markets in states like Texas and Kentucky.
Needless to say, there is plenty of room for growth with Ellianos Coffee!
The total investment to open a Ellianos Coffee location ranges from $397,500 to $690,000. You are also required to have at least $150,000 in liquid capital.
Xpresso Delight
While not a true franchise location per say, Xpresso Delight is a “coffee-as-a-service” opportunity that shouldn’t be overlooked.
Because of its unique nature, this franchise is another one with a low barrier of entry. As of December 2022, Xpresso Delight has a franchising fee of just $37,500 but it also has a few other royalties and fees that need to be taken into account.
Remember to take into account that you will have to be more directly involved in sales if you decide to do business with this coffee company.
Now let’s take a look at some franchises you are probably very familiar with and some other unique options for people interested in franchising.
Cafe2U
Cafe2U calls itself “the supreme bean machine.” This business is unique because it is a coffee truck (or van) rather than a set location.
This company is actually headquartered in Australia. However, in 2010 they began franchising in the United States.
Their initial U.S. launch was in San Diego but they don’t currently seem to have any vans currently operating.
This unique franchise opportunity is worth looking into but it is uncertain if they are open to testing the American market again.
Still, if you are passionate it is worth reaching out to them.
I was surprised (and honestly a bit disappointed) to find out that Daylight Donuts is one of the largest coffee franchises in my home state of Oklahoma.
So if you want to open a franchise business in the United States that is related to coffee, it doesn’t necessarily have to be focused on coffee.
Large businesses, like Panera Bread and Krispy Kreme, have increasingly been running coffee-related promotions.
While the coffee at those businesses generally isn’t third wave or particularly high quality, it is still an option for people who want to open a coffee-related business.
Check With Local Coffee Shops
If you want to get into franchising but are more interested in something local or third wave, check with local coffee shops.
Many small stores might be looking to open a new location or are willing to do some form of partnership. That, too, can be an excellent way to promote local coffee culture.
While this experience will definitely be different from a traditional franchise agreement, it is still worth looking into.
Photos by 12019, DenisZagorodniuc, Brett Sayles and Polina Kholodova
