FDD-based startup cost, franchise fee, revenue, profit, SBA default rate, and investment risk signals for Caribou Coffee Development.
Based on 2025 FDD · 7 filings in corpus
Cost and profit at a glance
Based on FDDIQ's FDD corpus, a Caribou Coffee Development franchise shows an estimated initial investment of $279K – $1.4M. Reported owner economics show $140K. Use the links below to compare the cost, revenue, SBA loan history, and ROI against other franchises before you request the full FDD.
Quick fee read: $30K franchise fee · 7% royalty/ad burden. These figures are directional screening data, not a substitute for reading the current FDD and speaking with existing operators.
Caribou Coffee Development requires a total initial investment of $279K to $1.4M (midpoint approximately $854K), with an initial franchise fee of $30K. The ongoing fee burden is 7% (5% royalty plus 2% advertising fund). This is below the industry average of approximately 14.2%, leaving more margin for the operator.
According to Item 19 of the 2025 FDD, the median revenue for Caribou Coffee Development locations is $1.1M. The implied franchisee EBITDA is approximately $140K, based on the margin assumptions disclosed in the FDD. The estimated cash-on-cash return is 16.4% with a payback period of approximately 6.1 years.
Caribou Coffee Development operates approximately 147 franchised units. The brand is growing, with a 3.4% net unit increase year-over-year, indicating franchisee demand and system health.
Prospective franchisees should verify all figures against the most recent FDD, conduct validation calls with multiple existing franchisees, and consult with a franchise attorney before signing any agreement.
Analysis based on 2025 FDD filing. FDDIQ Editorial Team · Methodology
Estimated using sector-average margins. Actual franchise economics vary by location, operator, and market conditions.
Industry averages based on FranchiseIQ corpus benchmarks. ▲ = better than avg, ▼ = worse.
Common questions buyers ask about Caribou Coffee Development, answered from FDD and SBA data.
The total initial investment for a Caribou Coffee Development franchise ranges from $279K to $1.4M, according to their Franchise Disclosure Document.
Caribou Coffee Development charges a 5% royalty fee on gross sales.
The initial franchise fee for Caribou Coffee Development is $30,000.
There are approximately 147 Caribou Coffee Development franchise locations as of 2023.
The median revenue for a Caribou Coffee Development franchise is $1.1M, with a cash-on-cash return of 16.4%, according to FDD Item 19 data.
SBA loan default rate data for Caribou Coffee Development is not currently available in the SBA database.
Whether a Caribou Coffee Development franchise is worth it depends on total startup cost, royalty burden, FDD Item 19 economics, SBA loan performance, and local operator execution. FDDIQ compares these signals against similar franchises so buyers can screen the opportunity before paying for diligence.
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