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The Actual Gloria Jean’s Gourmet Coffees Franchise
Coffee shops are a great investment as many enjoy a cup of joe. But with many brands out there, it can be challenging to stand out from your competitors. Plus, it might be more expensive to start your own coffee shop business. It’s a good thing that franchises like Gloria Jean’s Gourmet Coffees can become your next franchise opportunity. Then, what makes the coffee shop franchise different from others?
Gloria Jean’s Gourmet Coffees Franchise Overview
Gloria Jean Kvetko, the one who started it all, opened her first-ever location in Chicago in 1979. Since then, many have enjoyed the taste of her coffee. Even if the United States witnessed the coffee shop’s humble beginnings, Australia has also taken notice of it. In fact, Retail Food Group, an Australian company, owns Gloria Jean’s. The coffee shop opened its first Australian store in 1996.
Here’s what’s on the menu on any Gloria Jean’s location:
- Specialty Hot Drinks (e.g., Café au Lait, Latte, Café Mocha)
- Favorite Over Ice Classics (e.g., Iced Coffee, Iced Mocha, Iced Cappuccino)
- Refreshing Fruit Chillers and Smoothies (e.g., Strawberry Chiller, Raspberry Chiller, Mango)
- Espresso Chillers (e.g., Mocha Voltage, Ultimate Chocolate, Ultimate Cookie Espresso)
- Specialty Bits and Pieces Chillers (e.g., Cookies and Cream, Coco Loco, White Caramel Cookie)
Gloria Jean’s has locations in North America, South America, Asia Pacific, Europe, and Africa.
Training Information
The franchisor will hold an initial training period for the franchisees and a manager. However, if it’s an entity or a corporation, a managing owner (at least 10% interest) must undergo training. The location of the training could be held at a franchise store or a support center. Initial training includes the “Franchise Induction Program.” It lasts ten days and can be extended depending on the franchisee.
Besides that, there’s also the structured training program that takes at least a week to accomplish. There’s also field training, which depends on the franchisee’s knowledge of the classroom training.
Aside from the pre-opening training period, franchisees should also attend any conferences or other training programs required by the franchisor.
Territory
A franchisee should only operate its store in the location the franchisor approved. There’s no exclusive territory, and franchisees should expect competition from other franchisees and other brands. If the store is in the street or not located in a mall, the franchisor will grant a protected territory to the franchisee. With this in mind, no other franchisees can operate a store nearby, and the franchisee will not open another franchise in the area.
Obligations and Term Agreements
The franchisor requires franchisees or the managing owner to operate the store directly. Franchisees should have completed the required training program, regardless if they have managers to run the store or not. Managing owners should also know their obligations as written on the Franchise Agreement. If there’s a guarantor, their spouse should sign a Spouse’s Acknowledgment portion. However, if the spouse is also an owner, they must sign as a full guarantor instead.
The franchisor also expects franchisees to sell only allowed or permitted products.
Gloria Jean’s Gourmet Coffees Franchise Cost
Gloria Jean’s Gourmet Coffees estimates that the initial franchise cost is at $178,900 to $494,000. It includes other fees such as royalty fees, marketing, and renewal fees. Unfortunately, the franchisor will not offer any financing options or guarantee any loans or other obligations.
Learn more about the franchise cost breakdown below.
Your Investment
| Name of Fee | Low | High |
|---|---|---|
| Initial Franchise Fee | $7,500 | $15,000 |
| Real Estate (Rent and Security Deposit) | $6,000 | $15,000 |
| Leasehold Improvements | $60,000 | $215,000 |
| Equipment, Furniture and Fixtures | $61,000 | $143,000 |
| Signage | $5,000 | $20,000 |
| Professional Design Fees | $5,000 | $10,000 |
| Point of Sale System | $4,000 | $8,000 |
| Initial Coffee Inventory | $2,400 | $6,000 |
| Other Initial Inventory and Supplies | $4,500 | $6,500 |
| Grand Opening Fee | $5,000 | $5,000 |
| Training Expenses | $3,500 | $8,000 |
| Miscellaneous Opening Costs | $5,000 | $12,500 |
| Additional Funds (3 months) | $10,000 | $30,000 |
| ESTIMATED TOTAL* | $178,900 | $494,000 |
Other Costs
| Type of Fee | Amount |
|---|---|
| Royalty Fee | 6% of gross sales. |
| Marketing Fund Contributions | Currently, 2% of gross sales, subject to increases. |
| Gift Cards | Currently, $0.25/card. |
| Audit Expenses | Cost of audit, and understatement plus interest. |
| Indemnification | Will vary under circumstances. |
| Assignment Fee | $5,000 |
| Renewal Fee | $7,500 |
| Repairs, Renovations, Maintenance Expense, Insurance | The franchisor’s actual costs. |
| Interest and Late Fees | Highest legal rate for open account business credit in the state in which the store is located, not to exceed 1.5% per month and a late fee of $250 per occurrence subject to applicable law. |
| Advertising and Promotional Materials | The franchisor’s actual costs of production and delivery. |
| Required Purchases | Will vary under circumstances. |
| POS Cloud Fee | $199 to $242 per month, depending on the number of POS terminals at the franchisee’s Gloria Jean’s Coffees store. |
| PCI Fee | Included in POS Cloud Fee. |
Did You Know?
- Gloria Jean’s Gourmet Coffees rank 32 in the Forbes 2021 Franchise 500.
- Customers can buy coffee beans directly from the Gloria Jean’s website.
- They celebrated 40 years in 2019, and they even had a $0.79 offer on small flavored coffee sizes.
You can start your franchise journey with Gloria Jean’s Gourmet Coffees by clicking here.
For other franchise information, check out Franchise How for other informative resources.