Signing out of account, Standby...
- 2023 Franchise 500 Rank
#59 Ranked #66 last year
- Initial investment
$794K - $1.3M
- Units as of 2022
467 107.6% over 3 years
Scooter's Coffee started as a dream of Don and Linda Eckles, who believed that people need quality coffee served from convenient locations. With a vision of combining high-quality drinks and speedy service, Scooter's Coffee opened in 1998, with franchising beginning in 2001.
Scooter's Coffee has built a reputation for delivering "amazing drinks, amazingly fast." Customers can stop at a Scooter's Coffee drive-thru and pick up quality coffee as they begin their day with a smile. Since Scooter's Coffee hit the market, the brand has maintained a solid reputation among customers who depend on its commitments to quality.
There are hundreds of Scooter’s Coffee franchises throughout the United States. The company is seeking to expand its reach even further, potentially making it an intriguing option for entrepreneurs.
Why You May Want to Start a Scooter's Coffee Franchise
As the name suggests, Scooter's Coffee is where coffee connoisseurs can "scoot in and scoot out" as they enjoy its premium coffee products. In the competitive coffee shop market, Scooter's Coffee may be a brand with a formidable reputation that continues to solidify itself year after year.
Scooter's Coffee may offer a starting point and a brand built on outstanding performance. Opening a Scooter's Coffee franchise could be a strategic move if owning a well-regarded beverage franchise is your dream.
Scooter's Coffee has been ranked in Entrepreneur's Franchise 500 multiple times in recent years. This ranking is based on an evaluation of more than 150 data points in the areas of costs and fees, size and growth, franchisee support, brand strength, and financial strength and stability.
What Might Make a Scooter's Coffee Franchise a Good Choice?
To be part of the Scooter's Coffee team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
Scooter’s Coffee has partnered with third-party financial lenders that may help qualified franchisees cover the costs of the franchise fee, startup cost, equipment, inventory, accounts receivable, payroll.
How To Open a Scooter's Coffee Franchise
Before making any financial commitment or signing an agreement, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Scooter's Coffee franchising team questions.
Setting up a Scooter's Coffee franchise begins when the franchisor and franchisee enter into a legal agreement that allows you to operate a store and use the brand's image and products. A typical franchise agreement runs for ten years. Franchisees may be entitled to renew their agreement if they meet the Scooter's Coffee brand requirements.
For new Scooter's Coffee locations, the brand may offer pre-approved franchise locations tested for viability and demographics. Scooter’s Coffee also may offer exclusive territories, potentially setting up franchisees for success by weighing all factors. Before opening a Scooter's Coffee franchise, a designated manager and at least one principal franchisee must attend training.
About Scooter's Coffee
- Franchising Since
- 2001 (22 years)
- # of employees at HQ
- Where seeking
This company is offering new franchisees in the following US states: Alabama, Arkansas, Arizona, Colorado, Florida, Georgia, Illinois, Indiana, Kansas, Louisiana, Michigan, Minnesota, Missouri, Mississippi, Montana, North Carolina, North Dakota, New Mexico, Nevada, Ohio, Oklahoma, South Carolina, Tennessee, Texas, Wisconsin, West Virginia, Wyoming
- # of Units
- 467 (as of 2022)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Scooter's Coffee franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $794,000 - $1,264,500
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Veteran Incentives
- $20,000 credit toward first-year product
Definition: A discount or other incentive offered to military veterans who buy a franchise with this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Scooter's Coffee has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, payroll
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 104 hours
- Classroom Training
- 56 hours
- Ongoing Support
Purchasing Co-opsNewsletterMeetings & ConventionsGrand OpeningSecurity & Safety ProceduresLease NegotiationField OperationsSite Selection
- Marketing Support
Ad TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- # of employees required to run
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Interested in ownership opportunities like Scooter's Coffee? Request a free consultation with a Franchise Advisor now.
Franchise 500 Ranking History
Compare where Scooter's Coffee landed on this year’s Franchise 500 Ranking versus previous years.
Curious to know where Scooter's Coffee ranked on other franchise lists? Find out below.
Are you eager to see what else is out there? Browse franchises that are similar to Scooter's Coffee.
Buttered Biscuit, The
Pet Supplies Plus
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
These Are the Top 10 Recreation Franchises to Buy in 2023
From boating to painting, recreation concepts can make being a franchise owner fun.
The Anatomy Of A Franchise Disclosure Document
Here's a break down your most tedious -- and valuable -- franchise research tool so you understand the ins and outs before signing.
Panera Bread Is Testing a Sci-Fi-Esque Amazon Payment System — and Privacy Concerns Abound
The tech's already been pulled from one major Colorado venue after pushback.
6 Questions to Ask Before You Begin Your Franchise Search
When exploring franchises to buy, there are some crucial factors you should consider.
The 5 Items in Your Franchise Disclosure Document That Can Make or Break a Real Estate Deal
This document helps potential franchisees make informed decisions about investing in the franchise.
The Pros and Cons of Franchising Your Business
Before you take the leap to turn your business into a franchise, review the advantages and disadvantages of franchising.