Caribou Coffee Franchise FDD, Costs & Fees (2025)

Caribou Coffee is a specialty coffeehouse offering premium coffee, espresso drinks, and a variety of baked goods in a cozy, welcoming environment.

Caribou Coffee began its journey in December 1992 when founder John Puckett opened the first location in Edina, a suburb of Minneapolis, Minnesota. Over the years, it has grown into a well-known premium coffeehouse brand.

Now headquartered in Brooklyn Center, Minnesota, Caribou Coffee launched its franchising initiative in 2006, which paved the way for the brand’s expansion across the U.S. and into global markets.

Its menu spans more than just coffee, featuring a wide range of beverages including teas, as well as fresh food items like sandwiches, bagels, and pastries—all made with attention to quality.

What sets Caribou Coffee apart is its commitment to sustainability and ingredient integrity. The brand exclusively uses 100% Rainforest Alliance Certified coffee beans and real, recognizable ingredients such as chocolate chips and caramel, highlighting its dedication to offering products customers can feel good about.

Initial investment

Here's what you would need to invest if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.

Caribou Coffee offers 3 types of franchises:

Franchise Model Initial Investment Range
“Chalet” Coffeehouse $864,100 to $1,429,000
“Cabin” Coffeehouse $606,100 to $937,000
“Kiosk” Coffeehouse $279,100 to $703,000

We are summarizing below the main costs associated with opening a Caribou Coffee “Chalet” Coffeehouse.

For more information on the various types of franchises and its costs, refer to the Franchise Disclosure Document (Item 7).

Type of Expenditure Amount
Architecture and Design Fees $35,000 to $50,000
Leasehold Improvements / Construction Costs $300,000 to $575,000
Furniture, Fixtures & Equipment $360,000 to $490,000
Signage $40,000 to $80,000
Initial Franchise Fee $30,000
Business Licenses and Permits $100 to $2,000
Initial Inventory $12,000 to $20,000
Technology Costs $32,000 to $39,000
New Store Opening Launch Program $10,000 to $15,000
Professional Fees $5,000 to $25,000
Initial Training Expenses $3,000 to $9,000
Additional Funds (3 months) $37,000 to $94,000
Total Estimated Initial Investment (excluding Lease) $864,100 to $1,429,000

Franchise Disclosure Document

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Training

Caribou Coffee provides comprehensive training programs to franchisees, emphasizing operational excellence and consistency across locations. Here are the main training types offered by the Franchisor:

  1. Certified General Manager Training Program
    Franchisees must appoint at least one individual, approved by the franchisor, to be trained as a Certified General Manager. This person oversees daily operations and personnel training at the Coffeehouse and must successfully complete the Certified General Manager Training Program. Training occurs at the designated training center or a certified Coffeehouse, and the franchisee bears all related expenses including travel and compensation.
  2. Initial Management Training
    The Operating Owner and Certified General Manager, along with other approved individuals, are required to attend and successfully complete an initial training program. This program is conducted at the franchisor’s headquarters or another designated location. A non-refundable fee of $600 is charged for participation in this training.
  3. Ongoing Training and Web-Based Programs
    Franchisees may be required to send staff to additional training seminars and enroll employees in web-based training related to the products and services offered. These may be conducted at different locations and times as specified by the franchisor, with all associated costs borne by the franchisee.

Territory Protection

Caribou Coffee may offer territory protection to its franchisees, but it is not guaranteed. Under the Franchise Agreement, a franchisee has the right to operate a Coffeehouse at a specific, accepted location. Whether or not a Protected Territory is granted depends on various factors, including nearby business characteristics, demographics, and local trade area conditions.

If a Protected Territory is granted, Caribou Coffee agrees not to open or allow others to open another Coffeehouse within that territory during the term of the agreement, as long as the franchisee complies with all obligations.

However, Caribou retains extensive rights, including the ability to operate in non-traditional facilities like airports and schools within the territory, and to sell through alternative channels such as e-commerce. This means franchisees do not receive exclusive territory rights and may still face competition from the franchisor or its affiliates.

Number of units

2025
Franchised units

145

147

152

Company-owned units

339

333

335

Total units

484

480

487

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