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SUBJECT DOSSIER · FDD 2026

The Human Bean Franchise

Cost, fees, owner earnings, closure rate and litigation for a The Human Bean 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

The Human Bean discloses earnings (Item 19) — but the grade is how honestly. We graded it C.

Outlets188
Disclosed lawsuits0
Closure signals3 ceased
Investment
$582,090–$1,298,903
Total fees
1% of sales
Outlets
188
Closure signals
3 ceased, 0 terminated
Lawsuits
0
◢ FINDINGS
ITEM 20
3 outlets ceased operations
3 closures in 2025; zero terminations/non-renewals recent years; modest growth

What their own earnings claim actually says

Affiliate EBITDA $112,992; franchisee adjusted EBITDA $94,115. Cost differential $18,877 (2.1% of sales) from higher coffee/supply costs. 140 franchisees in study.

What a The Human Bean franchise actually costs to run

FeeDisclosedWhere it comes from
Initial franchise fee$35,000Item 5 — paid up front, before you open
Advertising fund1% of gross salesItem 6 — brand marketing, spent at the franchisor's discretion
Total recurring fees1% of gross salesBefore rent, labor, food or debt service
Total initial investment$582,090 – $1,298,903Item 7 — franchisor's own low/high estimate

No royalty; revenue from coffee/supply markup (40% max). Brand fee 1% (up to 2% future). Training $60/hr additional.

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

The Human Bean system size and owner turnover

Total outlets188
Ceased operations3
Terminated by franchisor0
Transferred to new owners4
Closure rate1.6% of outlets

3 closures in 2025; zero terminations/non-renewals recent years; modest growth

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 The Human Bean worth it? — how it compares to 32 similar franchises

Ongoing fees1% of saleslower than most (median 8%)
Startup costfrom $582,090pricier than 84% of peers
Disclosure honestyGrade Ctypical for the category
Closure rate1.6% 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 The Human Bean

The franchisor's framing: Affiliate EBITDA $112,992; franchisee adjusted EBITDA $94,115. Cost differential $18,877 (… We reconstruct what an owner actually keeps, from their own FDD.

LOW
MEDIAN
HIGH

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The Human Bean franchise — frequently asked

How much does a The Human Bean franchise cost?
The FDD lists a total initial investment of about $582,090–$1,298,903, including a $35,000 initial franchise fee.
How much do The Human Bean franchise owners make?
Affiliate EBITDA $112,992; franchisee adjusted EBITDA $94,115. Cost differential $18,877 (2.1% of sales) from higher coffee/supply costs. 140 franchisees in study. We grade this disclosure C for honesty.
What are the The Human Bean franchise fees?
The Human Bean's FDD discloses a $35,000 initial franchise fee, a 1% advertising-fund contribution, for roughly 1% of gross sales in recurring fees before rent, labor, or debt service. No royalty; revenue from coffee/supply markup (40% max). Brand fee 1% (up to 2% future). Training $60/hr additional.
What is the The Human Bean franchise profit margin?
The Human Bean does not publish a franchisee net-profit margin — almost no franchisor does. What Item 19 actually shows: Affiliate EBITDA $112,992; franchisee adjusted EBITDA $94,115. Cost differential $18,877 (2.1% of sales) from higher coffee/supply costs. 140 franchisees in study. Recurring fees alone take about 1% 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 The Human Bean franchise failure rate?
3 closures in 2025; zero terminations/non-renewals recent years; modest growth
How many The Human Bean locations are there?
The Human Bean's FDD reports 188 total outlets, with 3 that ceased operations in the most recent reporting year and 4 transferred to new owners. Item 20 is where system health shows up before the marketing does.
Does The Human Bean have complaints or lawsuits?
The Human Bean 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 The Human Bean franchise worth it?
It depends on the numbers, not the pitch. The Human Bean scores C on disclosure honesty, carries about 1% 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 The Human Bean or its franchisor. Figures are extracted from the franchisor's own public disclosure document; verify against the current FDD before any decision.