Gregorys Coffee Franchise
Cost, fees, owner earnings, closure rate and litigation for a Gregorys Coffee franchise — pulled from the franchisor's own public FDD (2026), not its sales material.
Disclosure honesty
Gregorys Coffee discloses earnings (Item 19) — but the grade is how honestly. We graded it D.
What their own earnings claim actually says
Disclosed minimum gross revenue for 47 of 51 locations (52-week trailing period). Average $853,755; median $822,667. No projections or net income provided.
What a Gregorys Coffee franchise actually costs to run
| Fee | Disclosed | Where it comes from |
|---|---|---|
| Initial franchise fee | $35,000 | Item 5 — paid up front, before you open |
| Royalty | 6% of gross sales | Item 6 — charged on revenue, not profit |
| Advertising fund | 4% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 10% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $459,150 – $946,000 | Item 7 — franchisor's own low/high estimate |
6% royalty + 2.5% marketing fund + 1.5% local marketing + 2.5% co-op advertising. Multiple other fees apply.
Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.
Gregorys Coffee system size and owner turnover
| Total outlets | 51 |
| Ceased operations | 5 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 9.8% of outlets |
5 company-owned outlets closed in 2025; 1 net decline in total system.
From Item 20 of the FDD 2026. Terminations and ceased operations are the franchisor's own count of owners who stopped — the number the sales pitch leaves out.
Is Gregorys Coffee worth it? — how it compares to 32 similar franchises
| Ongoing fees | 10% of sales | steeper than 93% of coffee & donuts franchises |
| Startup cost | from $459,150 | pricier than 65% of peers |
| Disclosure honesty | Grade D | less honest than most of the category |
| Closure rate | 9.8% of outlets | worse than 72% of peers |
| 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 Gregorys Coffee
The franchisor's framing: Disclosed minimum gross revenue for 47 of 51 locations (52-week trailing period). Average … 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
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Gregorys Coffee franchise — frequently asked
- How much does a Gregorys Coffee franchise cost?
- The FDD lists a total initial investment of about $459,150–$946,000, including a $35,000 initial franchise fee.
- How much do Gregorys Coffee franchise owners make?
- Disclosed minimum gross revenue for 47 of 51 locations (52-week trailing period). Average $853,755; median $822,667. No projections or net income provided. We grade this disclosure D for honesty.
- What are the Gregorys Coffee franchise fees?
- Gregorys Coffee's FDD discloses a $35,000 initial franchise fee, a 6% royalty on gross sales, a 4% advertising-fund contribution, for roughly 10% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty + 2.5% marketing fund + 1.5% local marketing + 2.5% co-op advertising. Multiple other fees apply.
- What is the Gregorys Coffee franchise profit margin?
- Gregorys Coffee does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Disclosed minimum gross revenue for 47 of 51 locations (52-week trailing period). Average $853,755; median $822,667. No projections or net income provided. Recurring fees alone take about 10% of gross sales, before rent, labor, food or debt service. Margin has to be reconstructed from the disclosure, not read off it.
- What is the Gregorys Coffee franchise failure rate?
- 5 company-owned outlets closed in 2025; 1 net decline in total system.
- How many Gregorys Coffee locations are there?
- Gregorys Coffee's FDD reports 51 total outlets, with 5 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 Gregorys Coffee have complaints or lawsuits?
- Gregorys 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 Gregorys Coffee franchise worth it?
- It depends on the numbers, not the pitch. Gregorys Coffee scores D on disclosure honesty, carries about 10% of sales in ongoing fees. Get the real owner take-home before you sign.
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Compare Gregorys Coffee to similar franchises
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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Gregorys Coffee or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.