Peet's Coffee is a specialty coffeehouse franchise offering handcrafted espresso drinks, brewed coffees, and light café fare, serving serious coffee lovers and commuters, and known for dark, deeply roasted beans, rigorous sourcing, and influential West Coast coffee heritage.
KEY FRANCHISE STATS
Franchisees
?
0
+
n.a.
n.a.
Franchise fee
?
$35,000
Investment
?
$1,035,000 - $1,697,000
Revenue (AUV)
?
Undisclosed
$1,367,000
+
n.a.
n.a.
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Peet’s Coffee is a well-known American specialty coffee brand recognized for bold flavors and premium roasting standards. The company was founded in 1966 by Alfred Peet in Berkeley, California, where it helped spark the modern specialty coffee movement in the United States.
From its early days, Peet’s Coffee positioned itself as a quality-driven alternative to mass-market coffee. Today, the brand is headquartered in Emeryville, California and continues to emphasize craft, freshness, and sourcing integrity.
Peet’s Coffee sells freshly roasted whole-bean coffee, ground coffee, espresso-based beverages, brewed coffee, tea, and cold brew products. In addition to its coffeehouses, the brand distributes packaged coffee through grocery and foodservice channels nationwide. Its product lineup is designed to appeal to serious coffee drinkers who value deep, complex flavor profiles and consistent quality across every cup.
Historically, Peet’s Coffee did not operate a traditional franchise system, instead relying on company-owned locations and licensed partnerships. These licensed locations have included airports, universities, and other non-traditional venues. More recently, the company has signaled a shift toward a franchise-led expansion strategy, opening the door to future franchise opportunities within the United States.
Initial investment
The initial investment required for a Peet's Coffee franchise is
$1,035,000 - $1,697,000.
That is the total cost you would need to finance if you were to start this franchise.
These costs are provided by the franchisor in the Franchise Disclosure Document.
Type of Expenditure
Amount
Initial Franchise Fee
$35,000
Real Estate (3 Months’ Rent and Security Deposit)
$30,000 – $50,000
Other Security and Utility Deposits
$10,000 – $20,000
Leasehold Improvements
$385,000 – $770,000
Computer System and Technology
$60,000 – $90,000
Initial Inventory and Supplies
$15,000 – $20,000
Furniture, Fixtures & Equipment
$260,000 – $350,000
Signage
$45,000 – $70,000
Professional Fees and Licenses
$70,000 – $110,000
Insurance
$7,000 – $10,000
Initial Training Program – Mandatory Trainees
$5,000 – $12,000
Grand Opening Advertising
$3,000 – $10,000
Additional Funds – First 3 Months of Operation
$110,000 – $150,000
Total Estimated Initial Investment
$1,035,000 – $1,697,000
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Type of Expenditure
Amount
Initial Franchise Fee
$35,000
Real Estate (3 Months’ Rent and Security Deposit)
$30,000 – $50,000
Other Security and Utility Deposits
$10,000 – $20,000
Leasehold Improvements
$385,000 – $770,000
Computer System and Technology
$60,000 – $90,000
Initial Inventory and Supplies
$15,000 – $20,000
Furniture, Fixtures & Equipment
$260,000 – $350,000
Signage
$45,000 – $70,000
Professional Fees and Licenses
$70,000 – $110,000
Insurance
$7,000 – $10,000
Initial Training Program – Mandatory Trainees
$5,000 – $12,000
Grand Opening Advertising
$3,000 – $10,000
Additional Funds – First 3 Months of Operation
$110,000 – $150,000
Total Estimated Initial Investment
$1,035,000 – $1,697,000
Franchise Disclosure Document
Below is Peet's Coffee's 2025 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Peet's Coffee had 199 total units in 2025, of which 0 were franchised-owned and 199 company-owned.
Frequently Asked Questions
What is the royalty fee?
The royalty fee for a Peet's Coffee franchise is 6.00%. In addition, you would have to pay the advertising (or national brand fund) fee of 0.50%.
What is the total investment?
The initial investment required for a Peet's Coffee franchise is $1,035,000 - $1,697,000. That is the total cost you would need to finance if you were to start this franchise. These costs are provided by the franchisor in the Franchise Disclosure Document.
What is the initial franchise fee?
The initial franchise fee for a Peet's Coffee franchise is $35,000. This is typically paid upfront as part of the total initial investment, after signature of the Franchise Agreeement.
Peet’s Coffee offers a comprehensive and structured training program to equip franchisees and their staff with the necessary operational skills:
Initial Training Program: Mandatory Trainees, including the franchisee, Managing Owner, and General Manager, must complete a structured training program consisting of classroom and on-the-job training. This includes topics such as brand identity, store operations, and customer service, held primarily at Peet’s headquarters in Emeryville, California. All training must be completed to the franchisor’s satisfaction before the store opens, and failure to do so may result in termination of the franchise agreement.
Additional and Remedial Training: Peet’s Coffee may require attendance at ongoing courses or training programs, which could be conducted by third-party providers. They also reserve the right to host an annual franchisee conference, and attendance may be mandatory for key management personnel. If a new General Manager is hired during the term, that individual must also complete the then-current Initial Training Program.
Training Costs and Fees: Franchisees are responsible for all travel, lodging, and living expenses incurred during training. If training is conducted on-site at the franchisee’s store, the franchisee must reimburse Peet’s Coffee for the trainer’s travel and accommodation expenses. Additional training fees are currently set at $500 per day per trainee.
Territory Protection
Peet’s Coffee does not provide exclusive territorial protection under its Franchise Agreement. Franchisees may face competition from other Peet’s Coffee franchisees, company-owned outlets, or distribution channels such as online sales.
The franchisor and its affiliates retain broad rights to operate or license others to operate Peet’s Coffee stores—or any other businesses—at any location and through any method, including the internet.
Even under an Area Development Agreement, where limited protection exists, Peet’s Coffee can still reduce or terminate territorial protections. Franchisees must remain in compliance to retain any benefits, and the franchisor can engage in any business activity within the Development Area.