The Coffee Bean & Tea Leaf Franchise Review & Verdict (2026)

Product details

Contents

Key facts


The Verdict

Quick Verdict · who it fits

The Coffee Bean & Tea Leaf fits first-time franchise buyers looking for an emerging food & beverage concept.

✓ Strengths

⚠ Risks to review

Key FDD Facts

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

Initial investment (Item 7)

$539K - $1.5M

Franchise fee (Item 5)

$25K

Royalty (Item 6)

5.5% + 2% ad

Item 19 median rev

$860k Traditional Franchised Cafés, excluding Drive Thru Cafés, Spe…

System size (Item 20)

22

Net worth required

$75K

Agreement term

10 yrs

Years in business

7+ yrs

Training (Item 11)

5 days

Company-owned units

107

Item 3 litigation

4 suits

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

Buyer qualifications

•No exclusive territory✓Semi-absentee eligible✓No bankruptcy disclosed•4 Item 3 cases

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.

Item 19 revenue distribution

Where units actually land — not just the headline average.

P25

$471k

Median

$860k

P75

$1.27M

▪ n = 11 units · Traditional Franchised Cafés, excluding Drive Thru Cafés, Special Distribution Cafés and Kiosks · fiscal year 2025 · Source: 2026 FDD Item 19

What you'd pay the franchisor

Drag to your projected annual sales. Royalty 5.5% + ad fund 2% on gross sales.

PROJECTED ANNUAL SALES$860,000

$100k$2M

Royalty (5.5%)

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

120 domestic outlets

Total units open

98 company-owned, 22 franchised

0 new franchised units; 5 company-owned closures

Units opened last year

2 franchised units ceased operations; 5 company-owned closed

Units closed last year

-8 units (net decline from 12

Net unit growth

AI Due Diligence Findings PREMIUM

What our analysis flagged across the 2026 filing.

4

Risks to review

3

Strengths identified

5

Questions to ask

Industry Benchmarks

How The Coffee Bean & Tea Leaf ranks against 751 Food & Beverage peers we've analyzed.

Initial investment

71st pct · of 751 peers

Franchise fee

12th pct · of 751 peers

System size

46th pct · of 751 peers

Food & Beverage industry averages

Avg investment

$589K - $1.4M

Avg franchise fee

$37K

Avg system size

261

Franchises analyzed

751

How The Coffee Bean & Tea Leaf stacks up

Closest concepts by category and investment.

Brand Item 19 Fee Investment Royalty Units
The Coffee Bean & Tea Leaf Disclosed $25K $539K - $1.5M 5.5% 22
Modern Market Franchising, Llc (modern Market Eatery)Similar price Disclosed $929K - $1.5M 5% 3
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 The Coffee Bean & Tea Leaf franchise cost?

The Coffee Bean & Tea Leaf requires a $25,000 initial franchise fee and a total initial investment range of $539,000–$1,468,000, per the most recent FDD on file.

Who owns The Coffee Bean & Tea Leaf?

The Coffee Bean & Tea Leaf is franchised by Super Magnificent Coffee Company Ireland Limited, 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 The Coffee Bean & Tea Leaf disclose financial performance (Item 19)?

Yes. The Coffee Bean & Tea Leaf discloses Item 19 financial performance representations with reported revenue around $860,002. See the financials sub-page for the full distribution.

What ongoing fees does The Coffee Bean & Tea Leaf charge?

Franchisees pay a royalty of 5.5% and an advertising fund contribution of 2% on gross sales as defined in Item 6 of the FDD.

What financial qualifications does The Coffee Bean & Tea Leaf require?

Per the FDD, The Coffee Bean & Tea Leaf typically expects $75,000 net worth. Actual approval thresholds may vary by territory and program.

How many The Coffee Bean & Tea Leaf locations are there?

As of their 2026 FDD, The Coffee Bean & Tea Leaf has 22 total locations. This information comes from Item 20 of the FDD.

Does The Coffee Bean & Tea Leaf offer franchisee training and support?

Yes. The Coffee Bean & Tea Leaf's most recent FDD documents approximately 5 days of initial training, typically split between classroom and on-site components. See Item 11 of the FDD for the full training and support schedule.

Does The Coffee Bean & Tea Leaf grant exclusive territory?

No. The Coffee Bean & Tea Leaf 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, The Coffee Bean & Tea Leaf discloses an initial agreement term of 10 years, a renewal fee of $12,500. Review Items 10 and 17 for the full renewal and termination provisions.

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