Sweetwaters Coffee & Tea is a specialty café franchise that serves premium coffee, tea, and global-inspired beverages in a cozy and welcoming environment.
KEY FRANCHISE STATS
Franchisees
?
34
+
0%
0%
Franchise fee
?
$39,500
Investment
?
$473,000 - $765,000
Revenue (AUV)
?
Undisclosed
$599,000
+
42.9%
42.9%
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Sweetwaters Coffee & Tea is a specialty café franchise founded in 1993 by Lisa and Wei Bee in downtown Ann Arbor, Michigan, near the University of Michigan. The company is headquartered at 123 W. Washington Street, Ann Arbor, MI. It began franchising in 2004 and has since expanded to nearly 40 locations across 12 states in the U.S.
The franchise offers a globally inspired menu of premium beverages and light fare. Popular drinks include the Dragon Eye coffee, French Vietnamese Au Lait, Thai Iced Tea, and Ginger Lemon Iced Tea.
Sweetwaters is known for using real, high-quality ingredients such as Japanese matcha, freshly brewed cold brew coffee, and handmade whipped cream. The café also serves a variety of pastries, desserts, and breakfast and lunch sandwiches.
What sets Sweetwaters apart is its strong connection to local communities and its authentic cultural roots. Each location showcases local art and often hosts community events, creating a warm and welcoming atmosphere.
Initial investment
The initial investment required for a Sweetwaters Coffee & Tea franchise is $473,000 - $765,000. 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
$39,500
Grand Opening Advertising
$10,000
Initial Training Fee
$7,000
Initial Training Expenses
$0 – $3,639
Pre-Construction
$6,750 – $7,150
Permits
$1,200 – $6,000
Leasehold Improvements
$185,214 – $298,647
Exterior Signage
$6,259 – $18,288
Utility Deposits
$0 – $300
Fixtures and Equipment
$147,715 – $270,474
POS System, including license fee
$2,546 – $4,249
Organizational Costs
$500 – $1,500
Opening Inventory and Supplies
$24,305
Construction Management
$0 – $10,000
Insurance – Liability and Workman’s Comp (3 months)
$1,383 – $2,607
Real Estate Costs – 3 Month’s Rent Plus Security Deposit
$10,920 – $21,320
Additional Funds – 3 Months
$30,000 – $40,000
Total
$473,292 – $764,979
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Type of Expenditure
Amount
Initial Franchise Fee
$39,500
Grand Opening Advertising
$10,000
Initial Training Fee
$7,000
Initial Training Expenses
$0 – $3,639
Pre-Construction
$6,750 – $7,150
Permits
$1,200 – $6,000
Leasehold Improvements
$185,214 – $298,647
Exterior Signage
$6,259 – $18,288
Utility Deposits
$0 – $300
Fixtures and Equipment
$147,715 – $270,474
POS System, including license fee
$2,546 – $4,249
Organizational Costs
$500 – $1,500
Opening Inventory and Supplies
$24,305
Construction Management
$0 – $10,000
Insurance – Liability and Workman’s Comp (3 months)
$1,383 – $2,607
Real Estate Costs – 3 Month’s Rent Plus Security Deposit
$10,920 – $21,320
Additional Funds – 3 Months
$30,000 – $40,000
Total
$473,292 – $764,979
Franchise Disclosure Document
Below is Sweetwaters Coffee & Tea's 2024 Franchise Disclosure Document. Upgrade to Pro or purchase the FDD to view and download the document.
Number of units
Sweetwaters Coffee & Tea had 38 total units in 2024, of which 34 were franchised-owned and 4 company-owned.
Sweetwaters Coffee & Tea provides a comprehensive training program to ensure franchisees are well-prepared to operate their cafes successfully. The training encompasses various formats and stages, combining online modules, in-person sessions, and hands-on experience.
Virtual Training Modules Franchisees begin with seven virtual training modules conducted by Sweetwaters' operations and marketing staff. These modules cover essential aspects of the business, including daily operations, marketing strategies, and customer service protocols.
In-Person Training at Headquarters Following the virtual training, franchisees attend an eight-day in-person training at Sweetwaters' Home Office in Ann Arbor, Michigan. This segment involves working in flagship cafes, allowing franchisees to gain practical experience in a real-world setting.
On-Site Pre-Opening Support Prior to the grand opening, Sweetwaters provides five days of on-site support at the franchisee's location. This includes assistance with final preparations, staff training, and ensuring that all operational standards are met for a successful launch.
Territory Protection
Sweetwaters Coffee & Tea offers territory protection to its franchisees under specific conditions. Once a franchisee secures a location approved by the franchisor, Sweetwaters defines a "Designated Territory" for that particular café.
This territory is outlined in the Data Sheet attached to the Franchise Agreement and typically grants the franchisee exclusive rights within that defined boundary. The protection means that within the designated area, the franchisor will not establish or allow another Sweetwaters café to operate, thereby shielding the franchisee from internal competition.
However, this exclusivity is contingent on compliance with the franchise agreement and operational standards. In the case of multiple locations under a Development Agreement, each franchise location is individually assigned its own territory upon approval of the premises.
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