Ziggi's Coffee Franchise Review (2026): Costs, Fees, Revenue Potential

• Category: Food & Beverage
• Initial Investment: $650,000 to $2,093,000
• Franchise Fee: $40,000
• Royalty: 6% of actual Gross Sales
• Marketing / Ad Fee: 1% Marketing and Technology Fee, with possible future increases or reallocations; local and regional advertising requirements may also be imposed in some circumstances
• Key additional recurring fees: POS support and maintenance ($105 to $220/month), LMS license fee ($101/month), loyalty platform fee ($149/month plus $0.03 per transaction), mystery shopper fee ($38 per visit, at least monthly)
• Number of locations: 100 total outlets at year-end 2024, including 93 franchised and 7 company-owned
• Best Fit: Owner-operator or franchisee with a full-time designated manager

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The estimated initial investment ranges from $650,000 to $2,093,000, which places this in a high-cost startup category. The initial franchise fee is listed as $40,000, but the larger capital requirement appears to come from buildout, equipment, and opening-related costs rather than the franchise fee alone.

The disclosure also references one or more espresso machines at an estimated $60,000 to $66,000, and additional funds of $30,000 to $50,000. Because the range is wide, site format and buildout choices likely have a major effect on total capital required.

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• Royalty: 6% of actual Gross Sales, payable weekly
• Marketing and Technology Fee: currently 1% of actual Gross Sales, payable weekly
• Possible future increase: the disclosure states this contribution may increase up to 2% of Gross Sales
• Local Advertising Expenditure: currently none, but may be required at at least 1% of Gross Sales in the future
• Regional Advertising Fee: currently none, but may be established in the future, generally up to 1% of Gross Sales without consent
• POS System Support and Maintenance: $105 to $220 per month
• LMS License Fee: $101 per month
• Loyalty Program Fee: $149 per month plus $0.03 per transaction
• Mystery Shopper Program Fee: $38 per visit, at least once per month

Overall, the fee stack includes both percentage-based charges and several operating-system fees. The ongoing burden is not just the 6% royalty; required technology, loyalty, and compliance-related charges add to the recurring cost base.

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Yes, the FDD includes Item 19 financial performance information, but it is primarily revenue data for franchised units and gross profit data for affiliate-operated units. Revenue is not profit, and the disclosure does not clearly establish franchisee net income.

Franchised units: 2024 annual total sales

Drive Thru model (40 outlets operating for the entire or substantially the entire year):

• Average annual total sales: $794,739
• Median: $733,663
• High: $1,362,119
• Low: $217,974
• Met or exceeded average: 15 outlets / 38%

Café with Drive Thru model (29 outlets operating for the entire or substantially the entire year):

• Average annual total sales: $802,361
• Median: $829,299
• High: $1,158,420
• Low: $427,408
• Met or exceeded average: 16 outlets / 55%

Franchised units: 2024 average daily total sales

Drive Thru franchisee-owned units (58 outlets):

• Average daily sales: $2,332
• Median: $2,064
• High: $5,283
• Low: $599
• Met or exceeded average: 22 outlets / 38%

Café with Drive Thru franchisee-owned units (34 outlets):

• Average daily sales: $2,217
• Median: $2,299
• High: $3,173
• Low: $873
• Met or exceeded average: 20 outlets / 59%

Affiliate-operated units: 2024 actual annual gross profits

These figures are for affiliate-operated shops, not franchised units, and they exclude at least royalty as a franchise cost.

Drive Thru affiliate units (4 shops):

• Actual Gross Sales range: $809,098 to $1,175,010
• Gross Profits range: $271,685 to $410,252
• Royalty not incurred by affiliates: $48,546 to $70,501

Computed from the four disclosed units:

• Average Actual Gross Sales: $1,033,659
• Median Actual Gross Sales: $1,075,264
• Average Gross Profits: $361,593
• Median Gross Profits: $382,217

Café with Drive Thru affiliate units (2 shops):

• Actual Gross Sales range: $826,091 to $959,649
• Gross Profits range: $268,292 to $278,699
• Royalty not incurred by affiliates: $49,565 to $57,579

Computed from the two disclosed units:

• Average Actual Gross Sales: $892,870
• Median Actual Gross Sales: $892,870
• Average Gross Profits: $273,496
• Median Gross Profits: $273,496

The spread in franchised-unit sales is material, especially in the Drive Thru model where the low and high are far apart. That suggests location, execution, and local demand may have a large effect on results. The affiliate gross profit tables are useful for seeing cost-of-goods and labor structure, but they are not the same as franchisee profit because they do not include all franchise-related costs and other operating expenses. The disclosure does not clearly state here whether the Item 19 figures are audited.

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• B2C / B2B: B2C at the unit level
• Revenue pattern: Primarily recurring daily retail sales
• Operational characteristics: Physical coffee shop operation, drive-thru and café formats, equipment-intensive setup, ongoing staffing, required POS and loyalty systems, and regular operational oversight

The disclosure indicates that a Designated Manager must devote full time and best efforts to day-to-day management and operation. That points to a hands-on operating model rather than a passive ownership structure.

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Advantages

• Item 19 includes actual 2024 sales data for franchised Drive Thru and Café with Drive Thru units.
• The system had 100 total outlets at year-end 2024, including 93 franchised units.
• Outlet count increased from 78 to 100 total units from 2023 to 2024.
• The disclosure provides affiliate unit gross profit tables that show sales, cost of goods sold, labor, and implied royalty impact.

Considerations

• The initial investment range of $650,000 to $2,093,000 is substantial.
• Sales results vary widely, particularly in the Drive Thru model.
• Ongoing fees include multiple layers beyond royalty, including technology, loyalty, POS, and mystery shopper costs.
• The territory is non-exclusive, which can limit geographic protection.
• The operating model requires full-time management involvement by a designated manager.

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This franchise may fit someone prepared for a location-based food and beverage operation with meaningful capital requirements and direct operating oversight. It may also fit an owner who is comfortable managing staffing, equipment, and recurring system compliance requirements.

It likely does not fit someone seeking a low-cost entry, passive ownership, or a business with minimal day-to-day operational complexity.

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• The franchisor may terminate without cause, according to the disclosure.
• If defaults occur, the franchisor and affiliates may suspend services, including product and supply sales, until defaults are cured.
• Required purchases from the franchisor or affiliates can create supplier concentration risk and added shipping and tax costs.
• Audit-related penalties can be significant, including stated charges tied to underreporting or acts of deception.
• Some advertising obligations are currently set at none but may be imposed or reallocated later, which could change the effective fee load.

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Ziggi's Coffee presents a relatively mature coffee shop system with meaningful sales disclosure and recent outlet growth. The main tradeoff is straightforward: you get a more established operating model with actual unit sales data, but in exchange you take on a high initial investment, a layered recurring fee structure, non-exclusive territory, and a business that appears to require active management.

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