Peet's Coffee
Peet’s Coffee franchises operate retail coffee shops offering specialty coffee and espresso drinks, tea and other beverages, coffee beans, food items, and related products and merchandise under the Peet’s Coffee brand, following specified business formats, methods, and standards. The franchisor offers Franchise Agreements primarily through Area Development Agreements, allowing developers to secure territorial rights to open multiple traditional Peet’s Stores with drive-thrus according to a development schedule. They target consumers seeking premium coffeehouse experiences, including coffee enthusiasts and daily beverage buyers.
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
6% royalty + 0% brand fund (not currently assessed) + $500/mo technology fee
Franchise Stats
Financial Performance
Item 19 Financial Performance
Data Based On: Data is based on 199 affiliate-owned reporting locations for the calendar year ended December 31, 2024, divided into performance thirds.
* The systemwide average gross revenue of $1,414,992 and median gross revenue of $1,367,052 were taken directly from the 'Gross Sales Systemwide and by Performance Thirds' table. The revenue_top_quartile was derived from the '1st Third' average gross sales of $1,850,010, and the revenue_bottom_quartile was derived from the '3rd Third' average gross sales of $1,024,672 from the same table. The consistency of the systemwide average was cross-verified by calculating weighted averages from the 'Gross Sales by Drive-Thru Model' table (weighted average = $1,414,992.42) and the 'Gross Sales by Region' table (weighted average = $1,414,991.98), both aligning closely with the stated systemwide average. No information on net income, net profit, EBITDA, or expenses was provided to estimate profit ranges.
Extracted Item 19 Section
How Peet's Coffee Compares to Other Coffee & Bakery Franchises
Key Insights
- Higher investment than 95% of Coffee & Bakery franchises
| Franchise | Investment Range | Franchise Fee | Royalty | Locations |
|---|---|---|---|---|
Peet's Coffee Current | $1.0M - $1.7M | $35K | 6.0% | 0 |
| 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.
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 Peet's Coffee franchise?
The total initial investment to open a Peet's Coffee franchise ranges from $1,035,000 to $1,697,000. This includes a franchise fee of $35,000. Ongoing royalty fees are 6.0% of gross sales.
How much revenue does a Peet's Coffee franchise make?
According to the 2025 FDD, the average gross revenue for a Peet's Coffee franchise is $1,414,992. The median revenue is $1,367,052.
Is Peet's Coffee a good franchise to buy?
Peet's Coffee shows several positive indicators: 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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