Caribou Coffee Franchise Review 2026: Ratings & Verdict

Product details

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

Caribou Coffee fits first-time franchise buyers looking for a mid-scale food & beverage concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

The numbers a buyer needs first — straight from the filing.

Initial investment (Item 7)

$281K - $1.5M

Franchise fee (Item 5)

$30K

Royalty (Item 6)

4–6% + 2% ad

Item 19 median rev

$1.09M franchised units (Kiosks and traditional franchises)

System size (Item 20)

144 +2

Agreement term

10 yrs

Years in business

89+ yrs

Company-owned units

350

Item 3 litigation

None disclosed

Model Caribou Coffee's costs in the investment calculator → Prefilled from this filing — startup cost, cash flow and break-even.

Buyer qualifications

•No exclusive territory•Owner-operator required✓No bankruptcy disclosed✓No Item 3 litigation

Data extracted from the 2026 FDD filed with state regulators. Fees and terms may have changed since filing — request the current FDD from the franchisor before deciding. Not legal, financial, or investment advice. Full disclaimer.

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 4–6% + ad fund 2% on gross sales.

PROJECTED ANNUAL SALES$1,090,000

$100k$2M

Royalty (4–6%)

Ad fund (2%)

Total / year

▪ Of-sales fees only · excludes rent, labor, COGS, and one-time costs · for illustration

Executive Summary

Free AI summary — the first read on the filing.

Key Numbers

494

Total units open

26

Units opened last year

2 franchised, 24 affiliate-owned

9

Units closed last year

0 franchised, 9 affiliate-owned

7 units

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

5

Risks to review

4

Strengths identified

5

Questions to ask

Industry Benchmarks

How Caribou Coffee ranks against 749 Food & Beverage peers we've analyzed.

Initial investment

39th pct · of 749 peers

Franchise fee

20th pct · of 749 peers

System size

79th pct · of 749 peers

Food & Beverage industry averages

Avg investment

$589K - $1.4M

Avg franchise fee

$37K

Avg system size

261

Franchises analyzed

749

How Caribou Coffee stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
Caribou Coffee Disclosed $30K $281K - $1.5M 4–6% 144
Angry ChickzSimilar price Disclosed $50K $611K - $1.5M 6% 2
Doctor's AssociatesBiggest system None $15K $227K - $630K 8% 18,773
Vintage Hospitality GroupTop-rated in category Disclosed $50K $3.5M - $6.4M 5.5% 33

Compare side-by-side ↗

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Frequently Asked Questions

How much does a Caribou Coffee franchise cost?

Caribou Coffee requires a $30,000 initial franchise fee and a total initial investment range of $281,100–$1,515,000, per the most recent FDD on file.

Who owns Caribou Coffee?

Caribou Coffee is franchised by Caribou Coffee Development Company, Inc., the franchisor entity of record on its Franchise Disclosure Document. Item 1 of the FDD discloses the franchisor's corporate history, parents, and predecessors.

Does Caribou Coffee disclose financial performance (Item 19)?

Yes. Caribou Coffee discloses Item 19 financial performance representations with reported revenue around $1,086,055. See the financials sub-page for the full distribution.

What ongoing fees does Caribou Coffee charge?

Franchisees pay a royalty of 4.0% to 6.0% and an advertising fund contribution of 2% of Gross Sales on gross sales as defined in Item 6 of the FDD.

How many Caribou Coffee locations are there?

As of their 2026 FDD, Caribou Coffee has 144 total locations, with 2 new locations opened in the most recent reporting year. This information comes from Item 20 of the FDD.

Does Caribou Coffee grant exclusive territory?

No. Caribou Coffee does not grant exclusive territory rights under Item 12. The franchisor retains the right to operate or grant additional units inside or adjacent to your trade area.

What are the renewal and exit terms?

Per the FDD, Caribou Coffee discloses an initial agreement term of 10 years. Review Items 10 and 17 for the full renewal and termination provisions.

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