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Gloria Jean's Gourmet Coffees
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Gloria Jean’s Coffees is an Australian-owned global specialty coffee company, and is a brand synonymous with quality and leading franchise systems. The Gloria Jean’s Coffees story began in the US in 1979 when Gloria Jean and Ed Kvetko opened a specialty gourmet coffee outlet in a small town just north of Chicago. With appreciation for quality coffee growing, it wasn’t long before Gloria Jean’s Coffees outlets started to appear around the USA. More than 16 years later, Nabi Saleh, an Australian businessman and coffee expert, experienced the brand while in the US and with his business partner, Peter Irvine, brought Gloria Jean’s Coffees across the globe to Australia, which quickly became Gloria Jean’s Coffees’ fastest growing market. So with a recipe for success, Nabi and Peter set their sights on realizing a vision to make Gloria Jean’s Coffees the most loved and respected coffee company in the world. Today Gloria Jean’s Coffees is located in 39 countries around the world and continues to find a place in the hearts of coffee lovers everywhere.
| Operating Units | 12/31/2009 | 12/31/2010 | 12/31/2011 |
|---|---|---|---|
| Franchised | 90 | 82 | 74 |
| % Change | -- | -8.9% | -9.8% |
| Company-Owned | 12 | 11 | 1 |
| % Change | -- | -8.3% | -90.9% |
| Total | 102 | 93 | 75 |
| % Change | -- | -8.8% | -19.4% |
| Franchised as % of Total | 88.3% | 88.2% | 98.7% |
Investment Required
The initial fee for a Gloria Jean’s Coffees franchise is $32,500 for a traditional store, $16,250 for a kiosk, and $5,000 for a cart. Gloria Jean’s Coffees provides the following range of investments required to open your initial franchise. The range assumes that all items are paid for in cash. To the extent that you choose to finance any of these expense items, your front-end investment could be substantially reduced. Please note that the figures below represent expenses for a GJC store with drive-thru.
| Item | Established Low Range | Established High Range |
|---|---|---|
| Franchise Fee | $20,000 | $32,500 |
| Rent & Security Deposit | $8,000 | $22,000 |
| Development Costs, Plans, Leasehold Improvements, etc. | $400,000 | $525,000 |
| Professional Design Fees | $9,500 | $9,500 |
| POS System | $16,100 | $22,000 |
| Initial Coffee Inventory | $3,500 | $5,000 |
| Other Initial Inventory & Supplies | $3,500 | $5,000 |
| Grand Opening Fee | $5,000 | $5,000 |
| Training Expenses | $3,500 | $12,000 |
| Miscellaneous Opening Costs | $10,000 | $15,000 |
| Additional Funds (3 months) | $40,000 | $60,000 |
| Total Initial Investment | $519,100 | $713,000 |
Ongoing Expenses
Franchisees pay ongoing royalty fees equal to 6% of gross sales and marketing fund contributions of 2% of gross sales.
What You Get: Training and Support
Franchisees will be enrolled in an initial training program that consists of ten days of classroom training at the company Support Center located in Irvine, CA, as well as two weeks of in-store training at various locations. Topics covered during training include Intro to Coffee Characteristics and Cupping, Espresso training, operation tools, sales building, and human resources. Franchisees may also be provided with assistance for the opening of the store for up to three days. Gloria Jean’s Coffees will also provide ongoing assistance regarding store operations, additional products and services, formulating and implementing advertising, merchandising, and promotional programs, and administrative procedures. Additional and refresher training course may also be available when appropriate.
Territory
Gloria Jean’s Coffees grants non-exclusive territories for mall locations and protected territories for street/non-mall locations.
Note: The tables and information regarding the number of operating units, investment required, on-going expenses, training and territory grants were taken from the company’s 2012 FDD. The 2012 write-ups will be incorporated into the 2013 Edition of the Bond’s Top 100 Franchises publication.