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SUBJECT DOSSIER · FDD 2026

Peet's Coffee Franchise

Cost, fees, owner earnings, closure rate and litigation for a Peet's Coffee franchise — pulled from the franchisor's own public FDD (2026), not its sales material.

Coffee & Donuts · disclosure-honesty grade · from public state filings

Disclosure honesty

C
Transparency 3 / 5

Peet's Coffee discloses earnings (Item 19) — but the grade is how honestly. We graded it C.

Outlets196
Disclosed lawsuits0
Closure signals3 ceased
Investment
$1,035,000–$1,697,000
Total fees
6.5% of sales
Outlets
196
Closure signals
3 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 20
3 outlets ceased operations
3 closures in 2025; 27 total closed since Jan 2026. Zero franchised outlets.

What their own earnings claim actually says

Data from 196 company-owned stores (2025). Systemwide average gross sales $1.49M. Performance varies by location; top third averaged $1.95M, bottom third $1.07M. Drive-thru locations performed better ($1.81M average). No franchisee data presented.

What a Peet's Coffee franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$35,000Item 5 — paid up front, before you open
Royalty6% of gross salesItem 6 — charged on revenue, not profit
Advertising fund0.5% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees6.5% of gross salesBefore rent, labor, food or debt service
Total initial investment$1,035,000 – $1,697,000Item 7 — franchisor's own low/high estimate

6% royalty, 0.5% local advertising, $500/month technology fee, multiple ancillary fees for training, audits, indemnification, lost revenue damages (3 years or remainder).

Royalty and ad-fund percentages are charged on gross sales — an owner pays them whether or not the location is profitable.

Peet's Coffee system size and owner turnover

Total outlets196
Ceased operations3
Terminated by franchisor0
Transferred to new owners0
Closure rate1.5% of outlets

3 closures in 2025; 27 total closed since Jan 2026. Zero franchised outlets.

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 Peet's Coffee worth it? — how it compares to 32 similar franchises

Ongoing fees6.5% of saleslower than most (median 8%)
Startup costfrom $1,035,000pricier than 97% of peers
Disclosure honestyGrade Ctypical for the category
Closure rate1.5% of outletsbetter than most (median 5.6%)
Disclosed lawsuits0fewer than most

Benchmarked against every coffee & donuts franchise we've graded from public FDDs — the context the franchisor's pitch never gives you.

◤ CLASSIFIED · ITEM 19 RECONSTRUCTED

Owner take-home for a Peet's Coffee

The franchisor's framing: Data from 196 company-owned stores (2025). Systemwide average gross sales $1.49M. Performa… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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Peet's Coffee franchise — frequently asked

How much does a Peet's Coffee franchise cost?
The FDD lists a total initial investment of about $1,035,000–$1,697,000, including a $35,000 initial franchise fee.
How much do Peet's Coffee franchise owners make?
Data from 196 company-owned stores (2025). Systemwide average gross sales $1.49M. Performance varies by location; top third averaged $1.95M, bottom third $1.07M. Drive-thru locations performed better ($1.81M average). No franchisee data presented. We grade this disclosure C for honesty.
What are the Peet's Coffee franchise fees?
Peet's Coffee's FDD discloses a $35,000 initial franchise fee, a 6% royalty on gross sales, a 0.5% advertising-fund contribution, for roughly 6.5% of gross sales in recurring fees before rent, labor, or debt service. 6% royalty, 0.5% local advertising, $500/month technology fee, multiple ancillary fees for training, audits, indemnification, lost revenue damages (3 years or remainder).
What is the Peet's Coffee franchise profit margin?
Peet's Coffee does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Data from 196 company-owned stores (2025). Systemwide average gross sales $1.49M. Performance varies by location; top third averaged $1.95M, bottom third $1.07M. Drive-thru locations performed better ($1.81M average). No franchisee data presented. Recurring fees alone take about 6.5% 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 Peet's Coffee franchise failure rate?
3 closures in 2025; 27 total closed since Jan 2026. Zero franchised outlets.
How many Peet's Coffee locations are there?
Peet's Coffee's FDD reports 196 total outlets, with 3 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 Peet's Coffee have complaints or lawsuits?
Peet's 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 Peet's Coffee franchise worth it?
It depends on the numbers, not the pitch. Peet's Coffee scores C on disclosure honesty, carries about 6.5% of sales in ongoing fees. Get the real owner take-home before you sign.

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Source: WI DFI Franchise Registration (2026). FranchiseValidate is independent and not affiliated with Peet's Coffee or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.