CARIBOU COFFEE
Caribou Coffee Development Company, Inc. franchises retail coffeehouses (Chalets, Cabins, and Kiosks) that serve coffee, coffee-based beverages, teas, baked goods, and retail items for on-premises and carry-out consumption in modern environments. The business model involves granting franchises for standalone, drive-thru, and non-traditional locations like malls, airports, and campuses, with franchisees adhering to standardized operations, recipes, and branding. It targets coffee lovers, quick-service customers, and consumers in high-traffic areas seeking premium beverages and snacks.
Disclaimer: This information was extracted using AI from public Franchise Disclosure Documents and should be independently verified. This is not financial or legal advice. Always review official FDD filings before making investment decisions.
Overview
Financial Requirements
5% royalty (Cabin/Chalet) + up to 3% marketing contribution (currently 2% Brand Fund + 1% local) + $500-$1,000/mo technology fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Gross sales data based on 131 non-traditional franchised Kiosk locations and 7 traditional franchised locations, all active for the full 2024 fiscal year. Profitability metrics (EBITDA, best guess profit range) are derived from 110 company-owned Drive-Thru Chalet and 59 company-owned Cabin Coffeehouses for the full 2024 fiscal year, with franchisee-related cost rates applied to estimate franchisee profit ranges.
* Weighted average gross revenue for non-traditional franchised Kiosk locations (Table 1, Page 2): (68 units × $267,063 + 38 units × $561,546 + 6 units × $1,836,096 + 19 units × $486,137) / 131 total units = $456,123.75. Weighted average median gross revenue for non-traditional franchised Kiosk locations (Table 1, Page 2): (68 units × $265,142 + 38 units × $465,259 + 6 units × $1,881,009 + 19 units × $367,395) / 131 total units = $412,030.97. Average EBITDA (Cash Flow) and EBITDA margin are derived from company-owned data (Table 4, Page 6) due to the lack of explicit franchised profit data. Weighted average AUV for 110 company-owned Drive-Thru Chalet ($1,104,835) and 59 company-owned Cabin ($821,192) stores = $1,005,811.70. Weighted average Cash Flow % (EBITDA margin) for these stores: (110 units × 20.2% + 59 units × 11.7%) / 169 total units = 17.23%. Weighted average EBITDA: $1,005,811.70 × 0.1723 = $178,805.46. Best guess profit low/high are based on the 'Franchisee Adjusted Cash Flow %' provided for company-owned units in Table 4 (Page 6), applied to the weighted average AUV of company-owned stores. Weighted average low margin for franchisees: (110 units × 6% + 59 units × -2%) / 169 total units = 3.21%. Weighted average high margin for franchisees: (110 units × 9% + 59 units × 1%) / 169 total units = 6.21%. Best guess profit low: $1,005,811.70 × 0.0321 = $32,257.39. Best guess profit high: $1,005,811.70 × 0.0621 = $62,431.74.
Extracted Item 19 Section
How CARIBOU COFFEE Compares to Other Coffee & Bakery Franchises
Key Insights
- Top 10 largest franchise system in Coffee & Bakery
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
CARIBOU COFFEE Current | $606K - $937K | $30K | 5.0% | 152 |
| PANERA BREAD BAKERY-CAFÉ | $633K - $4.9M | $35K | 5.0% | 1,112 |
| SCOOTER'S COFFEE | $955K - $1.5M | $40K | 6.0% | 825 |
| NOTHING BUNDT CAKES | $667K - $1.0M | $45K | 6.0% | 643 |
| GREAT AMERICAN COOKIES | $341K - $463K | $25K | 6.0% | 395 |
| 7 BREW | $894K - $2.2M | $35K | 4.5% | 297 |
Coffee & Bakery Average 37 franchises | $498K - $1.1M | $40K | 5.5% | - |
* Comparison based on latest FDD filings. Investment ranges from Item 7, fees from Item 5. Showing top 5 of 37 Coffee & Bakery franchises by location count.
Locations & Growth
Outlet Growth Over Time
Total outlets at end of each year
Geographic Distribution (2024)
Outlets by state across the United States
+5 more states
Franchisee Contacts
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Due Diligence
Litigation (Item 3)
No litigation involving franchisees reported in the FDD.
Bankruptcy (Item 4)
No bankruptcy history reported in the FDD.
System Health (Item 20)
Franchise system changes reported in the most recent fiscal year
Frequently Asked Questions
How much does it cost to open a CARIBOU COFFEE franchise?
The total initial investment to open a CARIBOU COFFEE franchise ranges from $606,100 to $937,000. This includes a franchise fee of $30,000. Ongoing royalty fees are 5.0% of gross sales.
How much revenue does a CARIBOU COFFEE franchise make?
According to the 2025 FDD, the average gross revenue for a CARIBOU COFFEE franchise is $456,123.75. The median revenue is $412,030.97.
How much profit can you make with a CARIBOU COFFEE franchise?
Based on the financial performance data in the FDD, estimated profit for a CARIBOU COFFEE franchise ranges from $32,257.39 to $62,431.74 per year. Actual results vary based on location, management, and market conditions.
How many CARIBOU COFFEE franchise locations are there?
As of the 2025 FDD, CARIBOU COFFEE has 152 franchise locations. The company has been franchising since 2006.
Is CARIBOU COFFEE a good franchise to buy?
CARIBOU COFFEE shows several positive indicators: established brand with 152+ locations, transparent financial performance data (Item 19). However, franchise success depends on many factors including location, local market conditions, and owner involvement. We recommend speaking with existing franchisees and consulting with a franchise attorney before making a decision.
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