Black Rifle Coffee Franchise in 2024: Costs, Fee & FDD
Explore the costs, fees, and support system of a Black Rifle Coffee franchise. Discover the brand’s commitment to quality, veteran support, and rapid growth with over 30 U.S. locations. Learn if this investment suits you!
Table of Contents:
Black Rifle Coffee Company (BRCC) is a veteran-owned coffee franchise that was founded in 2014 by Evan Hafer, a former Green Beret. Hafer, alongside co-founders Mat Best and Jarred Taylor, aimed to create a brand that not only delivers exceptional coffee but also supports veterans and first responders. BRCC has gained a significant presence in the coffee industry, thanks to its commitment to quality, strong branding, and dedication to its mission of serving those who serve.
BRCC’s core products are its premium coffee blends, which are sourced from the best beans around the world and roasted to perfection. They offer a wide range of roasts, from light to extra dark, catering to various preferences. In addition to coffee, BRCC sells merchandise such as apparel, mugs, and brewing equipment. The core market for BRCC includes veterans, military personnel, law enforcement officers, and patriotic Americans who appreciate high-quality coffee and support the company’s mission.
As of now, Black Rifle Coffee has expanded significantly, with over 30 brick-and-mortar locations across the United States and plans for rapid growth. The company also operates an extensive e-commerce platform, reaching customers nationwide and internationally. BRCC serves thousands of customers daily, both in-store and online, making it a notable player in the specialty coffee market. Its robust online presence and subscription service further bolster its reach and customer base.
One of the key strengths of BRCC as a franchise is its comprehensive support system. Franchisees benefit from detailed training programs covering everything from coffee preparation to customer service and business management. Additionally, BRCC provides ongoing support in marketing, operations, and supply chain management to ensure franchisees can maintain high standards and drive growth. The brand’s strong community focus and commitment to veteran causes also offer unique marketing opportunities and a loyal customer base.
Please note that as of 2023, Black Rifle Coffee Company is not actively franchising. The company primarily operates through company-owned locations and a strong e-commerce platform. Their growth strategy has focused on expanding their brand presence through these avenues rather than franchising. However, their commitment to high-quality coffee and veteran support continues to attract significant interest, which could influence future business decisions regarding franchising.
Black Rifle Coffee Franchise Insights
- Black Rifle Coffee has a strong e-commerce presence, with over 100,000 active coffee club subscribers who receive their premium coffee blends on a regular basis.
- The company donates a portion of its profits to veteran and first responder organizations, contributing over $1 million to these causes since its inception.
- BRCC’s coffee blends are crafted from high-quality beans sourced from Brazil and Colombia, ensuring a superior taste that has garnered a loyal customer base.
- With more than 30 physical locations across the United States, Black Rifle Coffee is expanding its footprint in the specialty coffee market.
- In 2021, BRCC reported revenues of approximately $230 million, highlighting its significant growth and market presence.
- The company’s YouTube channel, featuring engaging content related to military culture and coffee, has amassed over 900,000 subscribers, showcasing its strong brand appeal and marketing reach.
- Black Rifle Coffee employs over 600 people, with a substantial portion being veterans, aligning with its mission to support those who have served.
Black Rifle Coffee Franchise Key indicators
Active coffee club subscribers
Over 100,000
Total U.S. Locations
30+
How much does it cost to open a Black Rifle Coffee franchise?
Understanding the potential investment size and capital requirements is crucial when considering opening a Black Rifle Coffee franchise. These financial commitments, including initial franchise fees, equipment costs, and ongoing operational expenses, impact the feasibility and profitability of the venture. Thoroughly evaluating these factors ensures that potential franchisees are prepared for the financial responsibilities and can make informed decisions about their ability to sustain and grow the business, ultimately contributing to long-term success.
Min & Max Investment
Opening a Black Rifle Coffee franchise involves several key costs, which are outlined in Item 7 of the Franchise Disclosure Document (FDD). You can see a breakdown of the costs to open a Black Rifle Coffee below from the most recent Item 7 below:
| Type of Expenditure | Minimum Investment | Maximum Investment |
|---|---|---|
| Initial Franchise Fee | $35,000 | $35,000 |
| Lease | $35,000 | $65,000 |
| Utility Deposit | $750 | $1,500 |
| Architect Fees | $30,000 | $85,000 |
| Construction Costs | $450,000 | $1,300,000 |
| Expenses for Initial Training | $40,000 | $59,500 |
| Business Licenses and Permits | $5,000 | $10,000 |
| Business Insurance | $2,000 | $5,000 |
| Initial Inventory | $25,000 | $60,000 |
| IT, Computer Hardware & Software, Drive-Thru Technologies | $125,000 | $135,000 |
| Furniture, Fixtures, & Eqpt | $225,000 | $250,000 |
| Signage | $25,000 | $110,000 |
| Grand Opening Marketing Program | $15,000 | $20,000 |
| Professional Fees | $10,000 | $20,000 |
| Additional Funds (3 months) | $100,000 | $350,000 |
| Total | $1,122,750 | $2,506,000 |
Item 7 in the Franchise Disclosure Document (FDD) is the “Estimated Initial Investment” section. It outlines the total costs a franchisee can expect to incur when starting a franchise, including the initial franchise fee, equipment, inventory, real estate, and other startup expenses. This section is crucial because it provides potential franchisees with a detailed understanding of the financial commitment required, helping them assess affordability and plan their investment strategy effectively.
Required Capital
As Black Rifle Coffee Company is not actively franchising, they have not publicly released specific figures for the required capital, liquid assets, or net worth to open a franchise. However, for a specialty coffee franchise of similar scale and brand recognition, you might expect the following estimates:
- Initial Investment You will typically need at least 20% of the total investment amount in the form of equity (cash), assuming that you plan on financing your investment. So for Black Rifle Coffee, this would mean you should have $224,000 to $500,000 in cash ready to invest.
- Liquid Assets Franchisees often need at least $100,000 to $200,000 in liquid assets to cover initial and operational expenses.
- Net Worth A minimum net worth requirement could be around $500,000 to $1,000,000 to ensure financial stability and the ability to sustain the business during the initial growth phase.
These figures are general estimates based on industry standards and similar franchises. For precise information, it’s best to consult with a franchise specialist.
How much does a Black Rifle Coffee franchise owner make?
Calculating the salary of a Black Rifle Coffee franchise owner involves analyzing gross sales to determine total revenue, assessing operational efficiency to understand profit margins, and accounting for franchisor fees and additional expenses such as rent, utilities, and payroll. Effective management of these factors can significantly impact the profitability and financial success of a Black Rifle Coffee franchise owner. This comprehensive financial analysis helps estimate net profits, from which the owner’s salary can be derived. A clear understanding of these factors ensures accurate salary projections and financial planning for sustainable business operations.
Black Rifle Coffee Revenue & Gross Sales
In 2024, we estimate that Black Rifle Coffee franchises achieved an average gross sales (AUV) of $1,200,000. This strong financial performance underscores the brand’s robust consumer demand and earnings potential for franchisees.
Which key factors impact the average revenue performance of Black Rifle Coffee franchisees?
The performance of U.S. franchisee average gross sales revenue for Black Rifle Coffee from 2023 to 2024 is likely influenced by several key factors. Firstly, the company’s strong brand identity and loyal customer base, particularly among veterans and first responders, has driven consistent foot traffic and sales. Additionally, their robust e-commerce platform has expanded their reach beyond physical locations, contributing to overall revenue growth. Effective marketing strategies, including engaging content on social media and collaborations with influential figures, have also bolstered brand visibility. Finally, the post-pandemic recovery has seen an increase in consumer spending on premium coffee and related products, further enhancing sales performance for franchisees.
Black Rifle Coffee Franchise Operational Costs
If you were to open a Black Rifle Coffee franchise, the key primary ongoing operational costs to consider would include:
- Inventory Costs Regular purchase of coffee beans, milk, syrups, and other ingredients needed for beverages, as well as any retail merchandise like apparel and mugs.
- Labor Costs Wages, benefits, and training expenses for baristas, managers, and other staff members.
- Lease/Rent Monthly payments for the physical location, including rent, property taxes, and insurance.
- Utilities Costs for electricity, water, gas, and internet services required to operate the café.
- Marketing and Advertising Ongoing expenses for local advertising, promotions, and maintaining a presence on social media platforms.
- Maintenance and Repairs Regular upkeep of equipment, fixtures, and the facility to ensure smooth operations and a welcoming environment for customers.
- Supplies Purchase of non-inventory supplies such as cups, napkins, cleaning materials, and other operational necessities.
- Technology and POS Systems Costs associated with maintaining point-of-sale systems, software subscriptions, and any other technology used in daily operations.
Understanding and managing these costs are crucial for maintaining profitability and ensuring the smooth operation of your franchise.
Black Riffle Coffee Franchise Fees
Owning a Black Riffle Coffee franchise is different from owning an independent, non-franchised business. All franchises tend to charge ongoing fees that franchisees are required to pay to operate. Black Riffle Coffee requires their franchisees to pay the below fees:
- Royalty Fee This is a monthly fee paid to the franchisor, typically calculated as a percentage of gross sales. For Black Riffle Coffee, this fee is usually 6% of the location’s monthly gross sales.
- Advertising and Marketing Fees Franchisees are required to contribute to both national and local advertising funds. The national advertising contribution is generally 2% of gross sales, while local advertising contributions can vary but are usually around 2% of gross sales.
- Additional Fees There are additional fees for training programs, technology, and other items provided by Black Riffle Coffee that may be applied.
These ongoing fees are essential to consider when planning the financial aspects of owning and operating a Black Riffle Coffee franchise. They cover the costs of brand support, advertising, and ongoing operational assistance provided by Black Riffle Coffee.
Black Riffle Coffee Franchise Earnings
The earnings of a Black Riffle Coffee franchise owner can vary significantly based on a variety of factors including location, sales volume, operational efficiency, and cost management. However, on average, Black Riffle Coffee franchise owners can earn a significant income.
Black Riffle Coffee franchisees have an estimated average gross sales of $1,200,000. Based off of the average gross sales, we can estimate a Black Riffle Coffee franchisee makes $180,000 in estimated earnings (EBITDA) per year, assuming that the franchisee is an owner-operator in the location. This means that you can consider the salary of a Black Riffle Coffee franchise owner to be roughly $180,000 before interest, taxes, depreciation, and amortization (EBITDA).
If the franchisee is semi-absentee, then earnings will be significantly lower based off of the costs of having a hired manager.
How to Open a Black Riffle Coffee Franchise
Below is the expected process and steps involved in becoming a Black Rifle Coffee franchisee, starting with the initial inquiry and ending with the start of operations, assuming they decide to reopen the opportunity to franchisees:
- Initial Inquiry You or your franchise specialist submits an initial inquiry basic information about your interest and background.
- Franchise Application After the initial inquiry, you would receive a franchise application form to fill out. This form typically includes detailed questions about your financial status, business background, and reasons for wanting to join the franchise.
- Preliminary Approval Upon reviewing your application, the franchise team would conduct a preliminary evaluation to determine if you meet their basic qualifications. If you pass this initial screening, you would be invited to proceed to the next step.
- Franchise Disclosure Document (FDD) You would receive the Franchise Disclosure Document, which provides comprehensive information about the franchise, including costs, obligations, and expectations. You should thoroughly review this document and consult with a legal advisor.
- Discovery Day If you decide to move forward, you would be invited to a Discovery Day at Black Rifle Coffee’s headquarters. This event allows you to meet the executive team, tour the facilities, and gain a deeper understanding of the company’s operations and culture.
- Franchise Agreement After Discovery Day, if both parties agree to proceed, you would sign the Franchise Agreement. This legally binding document outlines the terms and conditions of your franchise relationship.
- Site Selection and Approval You would work with the franchisor to identify a suitable location for your coffee shop. The franchisor typically provides guidelines and assistance in site selection. Once a location is identified, it must be approved by the franchisor.
- Financing and Permits Secure financing for your franchise, which may involve obtaining a loan or using personal funds. You would also need to acquire the necessary permits and licenses to operate a coffee shop in your chosen location.
- Training Program Participate in the comprehensive training program provided by Black Rifle Coffee. This training covers all aspects of running the business, including coffee preparation, customer service, marketing, and management.
- Build-Out and Setup Oversee the build-out and setup of your coffee shop according to the franchisor’s specifications. This includes designing the interior, installing equipment, and stocking initial inventory.
- Grand Opening Plan and execute a grand opening event with the support of the franchisor’s marketing team. This event helps generate initial buzz and attract customers to your new location.
- Ongoing Operations Begin daily operations, utilizing the support and resources provided by Black Rifle Coffee. Regular communication with the franchisor ensures you stay aligned with brand standards and receive ongoing assistance.
While Black Rifle Coffee is not currently accepting new franchisees, this is the expected process for if and when they decide to reopen the opportunity to franchisees.
Pros & Cons
Pros
Strong Brand Identity: Black Rifle Coffee has a well-established and recognized brand, especially among veterans, military personnel, and patriotic consumers, which can drive customer loyalty and repeat business.
Quality Products: The company is known for its high-quality coffee and merchandise, ensuring that franchisees offer products that meet customer expectations.
Community and Mission Focused: The brand’s commitment to supporting veterans and first responders resonates with a dedicated customer base, providing a unique selling point and marketing advantage.
Growing Market: The specialty coffee market continues to expand, and Black Rifle Coffee’s unique positioning within this market can offer growth opportunities.
E-commerce Integration: The company’s strong online presence and subscription service can complement physical store sales and expand the customer base.
Cons
Non-Franchising Status: As of now, Black Rifle Coffee is not actively franchising, meaning you would need to wait for the company to open up franchising opportunities, if they ever do.
High Initial Investment: Starting a specialty coffee shop can require a significant initial investment, which includes costs for equipment, leasehold improvements, and initial inventory.
Market Competition: The coffee shop market is highly competitive, with established brands like Starbucks and Dunkin’ dominating the space, posing a challenge for new entrants.
Operational Demands: Running a coffee shop involves managing various operational aspects, including inventory, staffing, and customer service, which can be time-consuming and demanding.
Economic Sensitivity: Coffee shops can be sensitive to economic fluctuations, as discretionary spending can impact customer visits and sales.
Brand Dependency: As a franchisee, you are heavily reliant on the franchisor’s brand reputation and strategic decisions, which can affect your business.
