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.
Disclosure honesty
Peet's Coffee discloses earnings (Item 19) — but the grade is how honestly. We graded it C.
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
| 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 | 0.5% of gross sales | Item 6 — brand marketing, spent at the franchisor's discretion |
| Total recurring fees | 6.5% of gross sales | Before rent, labor, food or debt service |
| Total initial investment | $1,035,000 – $1,697,000 | Item 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 outlets | 196 |
| Ceased operations | 3 |
| Terminated by franchisor | 0 |
| Transferred to new owners | 0 |
| Closure rate | 1.5% 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 fees | 6.5% of sales | lower than most (median 8%) |
| Startup cost | from $1,035,000 | pricier than 97% of peers |
| Disclosure honesty | Grade C | typical for the category |
| Closure rate | 1.5% 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 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.
- 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
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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Compare Peet's Coffee to similar franchises
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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.