Caribou Coffee Franchise
Cost, fees, owner earnings, closure rate and litigation for a Caribou Coffee franchise — pulled from the franchisor's own public FDD (2018), not its sales material.
Disclosure honesty
Caribou Coffee discloses little or no owner-earnings data (Item 19) — the franchisor won't put real profit in writing.
What their own earnings claim actually says
No financial performance representations disclosed. FDD directs franchisees to contact current/former franchisees for earnings information.
What a Caribou Coffee franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $7,000 | Item 5 — paid up front, before you open |
| Royalty | 5% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 3% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 8% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $281,100 – $712,000 | Item 7 — franchisor's own low/high estimate |
5-6% royalty; 3% marketing (2% brand fund, 1% local); $6,000 minimum annual royalty required.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Caribou Coffee system size and owner turnover
| Total outlets | 494 |
| Ceased operations | 0 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 0.0% of outlets |
No terminations or ceased operations reported 2023-2025; limited transfer activity suggests stability.
From Item 20 of the FDD 2018. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Caribou Coffee worth it? — how it compares to 32 similar franchises
| Ongoing fees | 8% of sales | about average |
| Startup cost | from $281,100 | cheaper than most (median $350,000) |
| Disclosure honesty | Grade F | less honest than most of the category |
| Closure rate | 0.0% of outlets | better than most (median 5.6%) |
| Disclosed lawsuits | 0 | fewer than most |
Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.
Owner take-home for a Caribou Coffee
The franchisor's framing: No financial performance representations disclosed. FDD directs franchisees to contact cur… We reconstruct what an owner actually keeps, from their own FDD.
- Reconstructed owner P&L — net take-home after royalty, ad fund, rent, labor & debt
- Break-even timeline + cash-on-cash ROI
- Full fee stack + required-purchase markups
- Decoded real failure / closure rate
- How it ranks vs comparable franchises
- Validation-call playbook — the exact questions to ask
See a full sample report → · 30-day guarantee
Caribou Coffee franchise — frequently asked
- How much does a Caribou Coffee franchise cost?
- The FDD lists a total initial investment of about $281,100–$712,000, including a $7,000 initial franchise fee.
- How much do Caribou Coffee franchise owners make?
- Caribou Coffee discloses little or no earnings data (Item 19) — meaning the franchisor won't put real owner profit in writing. That's a red flag worth questioning.
- What are the Caribou Coffee franchise fees?
- Caribou Coffee's FDD discloses a $7,000 initial franchise fee, a 5% royalty on gross sales, a 3% advertising-fund contribution, for roughly 8% of gross sales in recurring fees before rent, labor, or debt service. 5-6% royalty; 3% marketing (2% brand fund, 1% local); $6,000 minimum annual royalty required.
- What is the Caribou Coffee franchise profit margin?
- Caribou Coffee discloses no Item 19 earnings representation, so no profit margin can be derived from the FDD at all. Any margin figure quoted elsewhere is an estimate, not a disclosure.
- What is the Caribou Coffee franchise failure rate?
- No terminations or ceased operations reported 2023-2025; limited transfer activity suggests stability.
- How many Caribou Coffee locations are there?
- Caribou Coffee's FDD reports 494 total outlets, with 0 that ceased operations in the most recent reporting year and 0 transferred to new owners. Item 20 is where system health shows up before the marketing does.
- Does Caribou Coffee have complaints or lawsuits?
- Caribou Coffee discloses no material litigation in Item 3 of the filing we reviewed. That's a positive signal, though it covers only what the franchisor is required to report.
- Is a Caribou Coffee franchise worth it?
- It depends on the numbers, not the pitch. Caribou Coffee scores F on disclosure honesty, carries about 8% of sales in ongoing fees. Get the real owner take-home before you sign.
Own a Caribou Coffee? Add your real numbers (anonymous)
We publish only aggregated benchmarks — never your name. Contribute and we'll show you how your numbers compare.
Compare Caribou Coffee to similar franchises
See all franchises ranked by disclosure honesty →
Source: WI DFI Franchise Registration (2018). FranchiseValidate is independent and not affiliated with Caribou Coffee or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.