Coffee Bean & Tea Leaf

Coffee Bean & Tea Leaf Franchise FDD, Costs & Fees (2025)

Coffee Bean & Tea Leaf is a coffeehouse chain renowned for its premium coffee and tea selections. With a cozy ambiance, it offers customers a relaxing environment to enjoy handcrafted beverages and gourmet snacks.

Founded in 1963 by Herbert B. Hyman in Los Angeles, Coffee Bean & Tea Leaf began as a gourmet coffee service for local offices. The first retail store opened in 1968 in Brentwood, California, offering whole-bean coffee, visible roasting, and flavor sampling.

The company is headquartered in Los Angeles, with its global innovation and experience center located in Singapore. It began franchising in 2001, quickly expanding into Asia with dozens of stores in Singapore and Malaysia within the first two years.

Coffee Bean & Tea Leaf sells handcrafted specialty coffee, hand-plucked whole-leaf teas, signature Ice Blended® drinks, single-serve capsules, bakery items, powders, brewing equipment, and branded merchandise. All coffee beans are top 1% Arabica, small-batch roasted in Camarillo, California, and ethically sourced from East Africa, Latin America, and the Pacific.

The brand stands out by pioneering the original Ice Blended® drink in 1987—before the Starbucks Frappuccino. It focuses on quality, innovation, visible roasting experiences, and global impact programs like Caring Cup®. Backed by Jollibee since 2019, it continues to expand worldwide with a strong franchise system.

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.

Coffee Bean & Tea Leaf offers 2 types of franchises:

Type Initial Investment
Coffee Bean & Tea Leaf Special Distribution Store (Full Service) $623,500 to $1,024,000
Coffee Bean & Tea Leaf Special Distribution Kiosk $531,000 to $946,000

We are summarizing below the main costs associated with opening a Coffee Bean & Tea Leaf Special Distribution Store (Full Service) Franchise.

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

Type of Expenditure Amount
Initial Franchise Fee $25,000
Lease for Store $2,500 to $12,000
Design & Plans $35,000 to $40,000
Leasehold Improvements $200,000 to $418,000
Signage $20,000 to $28,000
Furniture, Fixtures and Equipment $235,000 to $305,000
Point of Sale (POS) System $30,000
Initial Inventory $8,000 to $32,000
Grand Opening Promotion $0 to $10,000
Permits and Security Deposits $5,000
Insurance $2,000 to $10,000
Professional Fees $4,000 to $24,000
Training Expenses $12,000 to $25,000
Additional Funds – three month period $45,000 to $60,000
TOTAL $623,500 to $1,024,000

Franchise Disclosure Document

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Training

Coffee Bean & Tea Leaf provides an in-depth training program to ensure franchisees operate their stores effectively and in line with the brand's standards. Here are the key components of their training:

  1. Initial Training
    A 15-day initial training program is required for the Director of Operations and General Manager. This training takes place at corporate offices or designated Coffee Bean locations and covers store operations, marketing, site selection, financial guidelines, and more.
  2. Owner Training
    A 5-day training session is provided for the owner and one additional person designated by the developer. This program covers the overall operations of the store, leadership, equipment, marketing, and financial management.
  3. Pre-Opening Onsite Assistance
    For the first store, the franchisor sends 1–3 training staff to assist on-site for up to 15 days around the store opening. For the second and third stores, 1–2 staff members are sent for up to 10 days. The franchisee is responsible for associated travel and living expenses.
  4. Employee Training by Certified Manager
    The certified General Manager is responsible for providing at least 7 days of training to store employees before opening. This applies to both initial staff and any new hires during the term of the franchise.

Territory Protection

The Coffee Bean & Tea Leaf grants its franchisees the right to operate within a specified "Designated Territory," usually centered around the physical premises of the store, such as in a mall or airport terminal.

While this area provides operational space, it does not equate to exclusive territorial rights. Franchisees are not allowed to operate other distribution models like kiosks or carts outside of this designated area without prior consent.

Despite the lack of exclusivity, The Coffee Bean & Tea Leaf commits that it and its affiliates will not establish another store under the same brand within a franchisee’s Designated Territory during the franchise term. However, the company reserves broad rights to compete through various channels—including licensing or franchising others—outside of this specified area.

Number of units

2023
Franchised units

44

39

41

Company-owned units

3

3

3

Total units

47

42

44

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