Caribou coffee franchise as a brand was discovered in the USA in 1992. With the advent of the concept, the owners came to know that it has been a success in the market. For the same reason, they decided to offer a franchise in 2004 for the first time. Since then, the franchise chain has witnessed a whopping growth of 718 units outside and inside the country. The hidden success of Caribou Coffee is not limited to its scrumptious menu including creamy mochas and lattes, sandwiches, pops, iced teas, bagels, oatmeals, etc, but also lies in its successful business model that includes gift cards and other advantages offered to their loyal visitors. 

Who owns Caribou Coffee?

Caribou Coffee Company, Inc. (CCC) is the predecessor and the corporate parent of the franchisor company, Caribou Coffee Development Company, Inc. The franchisor is known to offer franchises for the operation and establishment of the Caribou Coffee businesses specializing in baked goods and freshly roasted coffee beverages for carry-out and on-premises consumption. Apart from this, it is also well-recognized for the related selling of retail items in a technical and modern environment.  

Caribou Coffee vs Starbucks

When it comes to coffee, Caribou Coffee is definitely a contender. They have a wide variety of coffee options, including iced coffee, latte, and mocha. And their roasts are some of the best on the market.

Starbucks, on the other hand, is a bit more limited in terms of its coffee options. They do have a wide best variety of caribou coffee drinks and hot chocolate. But they don’t have as many iced coffee options as Caribou. Their roasts are also a bit less consistent than Caribou.

Ultimately, it comes down to personal preference.

Is Caribou Coffee a Franchise Opportunity?

Caribou Coffee particularly offers 3 different varieties of franchise formats for the operation of their coffeehouses at the locations they agree upon. 

Which are 

  • Caribou Franchise Chalet 
  • Caribou Franchise Cabin
  • Caribou Franchise Kiosk

In this day and age, entrepreneurs possess a golden chance of joining Caribou Coffee and using their product innovations, modern business concepts, beloved names, and other such benefits to support and build the community in several locations. 

Facts That Nobody Told You About Caribou Coffee

  • All the beans of Caribou Coffee are roasted and made to perfection in Brooklyn Center. 
  • The franchise is known to roast beans worth more than 20 million pounds a year.
  • Over a dozen blends or more are created by Caribou taste testers. 
  • Kuwait is known to have the top-selling Caribou coffee shop and bars. 
  • 100% clean label ingredients are used by the Caribou Coffee machine.

Caribou Coffee  Franchise Information
Industry TypeFood And Beverages
Sub CategoryCoffee Franchise Opportunities
Year Established1992
Company NameCaribou Coffee Company, Inc.
Founder/Management HeadJohn Puckett
Franchising Started2004
Franchise Expansion PlanUnited States, Canada, Australia, United Kingdom, UAE, and India
Number of Units725
Number of Franchise UnitsMore than 700 franchise units
Social Media HandlesFacebook
Company Office location Minneapolis, Minnesota

Caribou Coffee Franchise Requirements

The franchise looks for multi-unit and experienced operators who wish to assist Caribou Coffee’s growth. Caribou offers several franchise options for their formats, either the traditional coffeehouse format or the drive-thru cabin format. 

Caribou Franchise requirements include 

  • 10+ locations as a minimum commitment 
  • Liquid assets or cash worth $3 million 
  • Experience with a franchise and multi-unit food and beverage

Caribou Coffee franchise

How much does a Caribou Coffee franchise cost

The Caribou franchise fee goes up from $25,000 to $50,000 with an initial range of cost between $200,000-$400,000 for a single unit.

  • Caribou Coffee Kiosk in Airport or Grocery Store franchise cost is $250,000 Million
  • The Caribou Chalet Coffee franchise cost $1.1 Million

How much does it cost to franchise a Caribou Coffee in the United States?

In the United States, the total cost to start the Caribou shop franchise is around $200,000 to $500,000 for the Kiosk and Cabin drive-in format.

The Caribou Coffee franchise Costs internationally in

India is Rs. 1,581-Rs. 3,02 crores

Canada is Can$ 253,067-$506,066

United Kingdom is150,933-301,866-pound sterlings

Australia is AUD 280,394-AUD 560,789

United Arab Emirates is AED 734,560-1.47 million dirhams

Germany is EUR 177,149- EUR 354,298

Caribou Coffee  Franchise Initial and On-going Franchise Cost
Caribou Coffee  Franchise Fee$ 25,000 to $50,000
Caribou Coffee  Franchise Cost$200,000 – $500,00 for Cabin and Drive Thru Format$1.1 Million for Chalet Format
Royalty Fee8%
Advertising Fee2-3 %

Is the Caribou Coffee franchise worth the cost?

With more than 700 units globally and an estimated 449 locations in the US, the annual gross revenue of the company franchise in a year gets to about $300+ million. Hence, it can undoubtedly be said that the company franchise is worth the investment. Though you will have to wait for 5 or more years to recoup your investment, depending on the business format.

Caribou Coffee Training to Franchises 

A franchisee is required to designate an individual who is approved by the franchisor and trained as a certified general manager of the coffeehouse. Additionally, he will be required to attend and complete the Certified General manager Training Program of two weeks in Minneapolis, Minnesota, or at any certified training coffeehouse successfully. Thereafter, he will be held responsible for the day-to-day operations of the coffeehouse along with the training of personnel. 

The franchisor may require a franchisee to send such a manager and additional personnel for training at their expense to several seminars and training programs. He may periodically request franchisees to attend several conventions or meetings coupled with paying a reasonable fee for every person attending it. 

Caribou Coffee franchise

How is Caribou Coffee Territory Granted to Franchises

Franchisees possess a right to operate and establish a particular coffeehouse under the Franchise Agreement at an acceptable location. After the agreement on an accepted location, the franchisor will further determine if there will exist an area surrounding the location while granting several protections. 

Upon being granted a protected territory by the franchisor, it will fail to operate during the Franchise Agreement’s term and will not grant the right to operate a coffeehouse to other parties within the protected territory. The size of the protected territory, in this case, will be directly based on an array of factors like drive times, the character of various businesses nearby, demographics, and other commercial and physical features of the trade area and location. There fails to exist a minimum area that the franchisee will get as a protected territory. 

What is the Caribou Coffee  Franchise Term of Agreement and Renewal?

The initial franchise term tends to exceed 10 years for a cabin and chalet franchise, and 5 years in the case of a kiosk franchise. The renewal of this term is for 5 additional years upon the signing of the franchise agreement containing terms and conditions that might be different materially from the ones mentioned in the original agreement. This is subject to various requirements mentioned in the contract.

Does Caribou Coffee provide Financial Assistance to Franchises?

The franchisor fails to guarantee a lease, note, or obligation to the franchisee. The franchisor also does not offer to finance, whether directly or indirectly. 


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Pros & Cons of owning a Caribou Coffee  Franchise


  • Exceptional grade coffee
  • Outstanding customer service
  • Effective branding
  • Large domestic fanbase


  • Slow expansion
  • Sluggish returns 
  • More than 60% are corporate-owned stores, and franchises are facing competition with corporate locations.

How much do Caribou Coffee franchise owners make?

As far as annual sales per unit are concerned, a unit with no drive-thru earned $511,213 through its sales, while the ones with a drive-thru earned $992,940 on average. These are based on the latest FDD of Caribou Coffee.

Based on these numbers, I will estimate the Caribou coffee franchise profit for you to make your decision.

AUVEstimated Annual Profit (12.5%)Estimated Annual Profit (15%)Estimated Annual Profit (18%)
Grocery Store Kiosk
      $28,750    $34,500    $41,400
Recoup Cost of
    8.7 Years    7.2 Years    6 Years
Airport Kiosk

Recoup Cost of
       3.9 Years          3.25 Years2.7 Years
Cabin Drive-Thru $ 992,940  $124,117     $ 148,941$ 178,730
Recoup $500,000  4 years  3.35 years  2.8 years

What are Caribou Coffee franchise owners’ reviews?

Caribou Coffee franchise owner reviews can give you a good idea of what to expect from the business. The reviews can help you decide if the franchise is right for you, and whether the investment is worth it.

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Franchise Deck Analysis and Overview

The Caribou Coffee franchises has a few key advantages that make it an attractive option for entrepreneurs. First, the company is well-funded, with a strong balance sheet and a history of profitable growth. Second, Caribou Coffee has a strong brand name and a loyal customer base. 

The challenge a prospective franchise owner faces is competition from corporate-owned stores for property acquisition.

Is the Caribou Coffee  Franchise Profit Worth the Franchise Cost?

The Caribou Grocery Store Kiosk makes less money compared to the Airport counterpart franchise format.

The airport kiosk and cabin drive-thru are good franchise opportunities for you. 

Who doesn’t drinks coffee? 

But franchise profitability depends largely on retail economics,I recommend airport kiosk and cabin drive-thru concepts.

The Franchise Deck rating for the Caribou Coffee franchise is 3.8/5.0.

Caribou Coffee franchise


The true aim of Caribou Coffee, the creation of experiences that makes the day of any person, tends to go beyond beans. The connections and conversations over a cup of coffee tend to act as a catalyst for progress and change. The annual social, governance, and environment progress report shows how connecting over coffee can help sparkle an authentic change, impact, and inspiration at the Caribou Coffee franchise. 

Entrepreneurs who want to open a franchise
 in the coffee  franchise opportunities category can look at 

  1. Biggby Coffee Franchise
  2. Pj’s Coffee Franchise
  3. Scooters Coffee franchise 
  4. Dunkin Donuts Franchise
  5. Tim Hortons Franchise 
  6. Black Rifle Coffee Franchise
  7. Dutch Bros Coffee Franchise
  8. 7 Brew Coffee Franchise
  9. Starbucks Franchise
  10. Gloria Jeans Coffee Franchise
  11. Waves Coffee Franchise
  12. Peet’s Coffee Franchise

Frequently Asked Questions (FAQs)

  1. Is the Caribou Coffee franchise profitable?

The Caribou Coffee franchises is profitable. The franchise has a long history of being a successful business, and it has a proven system that can help it continue to be a profitable franchise.

The franchise has a number of factors that make it a profitable business. First, the franchise is well-established. There are already a large number of stores in operation, which means that there is already a lot of customer traffic. This traffic is a key source of revenue for the franchise.

Second, the franchise has a strong system in place for marketing and selling coffee. This system is well-oiled and efficient, which helps the franchise generate a lot of sales

  1. Can you make money owning a Caribou Coffee?

Caribou Coffee is a popular coffee chain that has locations all over the United States. Owning a Caribou Coffee store can be a profitable business. The company has a strong customer base and is known for its high-quality coffee.

As a Caribou Coffee store owner, you will need to invest in a good coffee machine and a supply of high-quality coffee beans. You can also promote the store through social media and attract new customers with discounts and free coffee.

3. How do Caribou Coffee franchises make money?

Caribou Coffee franchises make money in a variety of ways. Some franchises may sell coffee beans and related items directly to consumers, while others may sell coffee through grocery stores, convenience stores, or other retail outlets. Some franchises may also offer financial services, such as loan programs or credit counseling.

Published On: December 16th, 2022 / Categories: Blog, Coffee Franchising Opportunities, Food Franchise Opportunities /