Black Rifle Coffee Company is an emerging brand with passionate fans. They are immensely popular in large part to their brand image and philosophy geared towards loving America and the people who serve. You probably reached this page because you are interested in purchasing a franchise opportunity. We have no affiliation with Black Rifle Coffee, but we know a lot about franchising and love generating content to help entrepreneurs.
First, Does Black Rifle Coffee Offer Franchises?
At Waldrop & Colvin we work with franchisors and prospective franchisees by providing the legal support they need to conduct business with confidence. We get this question a lot. Unfortunately, we don’t know the answer for certain. At the time of this post, they were not actively offering franchises to new candidates; however, they do maintain a current franchise disclosure document and are legally able to offer franchises in most states.
Will they start actively offering franchises soon? We do not know, but we hope so. Demand is high for franchisees and coffee loving consumers.
Next, what are the requirements to open a franchised location if Black Rifle Coffee does begin actively offering franchise opportunities?
Franchises are offered and sold through disclosure of a franchise disclosure document. This document is created based on requirements imposed through the federal Franchise Rule. This blog post is created based off information contained with the 2023 FDD. The goal of this post is to highlight the initial and ongoing financial demands of purchasing a Black Rifle Coffee franchise. You can also find a copy of a publicly filed 2023 disclosure document at the end of this post. Please note, we have no affiliation with the franchisor.
This blog post contains only a small amount of the information you will need to consider when purchasing a franchised business. You can learn more about franchising and franchise law (state by state franchise law or federal franchise law) by exploring our site. Regardless of whether you consider this franchisor or another franchise opportunity, it would be our pleasure to assist.
The Estimated Cost to open A Black Rifle Coffee franchised outlet
Interested in opening your own Black Rifle Coffee franchise business? Expect to invest between $1,455,750 to$3,099,00 to launch your first location. That is what Black Coffee estimates it will cost you to get a single franchised location ready to open and operate for 3-months according to the BRCC 2023 franchise disclosure document filed in the NASAA electronic filing depository.
The Initial Franchise Fee
As of 2023, the initial franchise fee is $35,000 for each franchised location. This fee goes to Black Rifle Coffee Company when you sign a franchise agreement. This initial franchise fee has not increased over the past year. They also offer a discounted fee on multi-unit deal
The Build-out expenses
You will need funds sufficient to build-out a franchised location. This includes the store lease, design, buildout and construction, furniture and fixtures, hardware and software, kitchen wares, signage, initial marketing, initial inventory, and certain other fees. The costs are spelled out in Item 7 of the Black Rifle Franchise Disclosure Document. These expenses make up a bulk of the estimated $1,455,750 to $3,099,000 startup costs.
The Operating Expenses
According to the 2023 FDD, you will need $100,000 to $350,000 in cash on hand to operate a Black Rifle Coffee Company franchise location for the first three months. The additional funds estimate is the same amount estimated in the prior years disclosure document.
The Ongoing Expenses due to black rifle coffee company
You will naturally incur ongoing operating expenses for any business. The franchise relationship typically involves ongoing support and an ongoing obligation to pay certain royalty fees. As of 2023, Black Rifle Coffee Company collects 6% of Gross Sale as ongoing royalty fee on a weekly basis. They also require a marketing contribution of 4% of Gross Sales. This means a total of 10% of Gross Sales (Not Profit) will go to Black Rifle Coffee Company in exchange for them allowing you to take advantage of their “know how” and use their marks, systems, and processes to offer their products and services. The royalty rate has remained consistent.
Are there Black Rifle Coffee Franchise Requirements to Participate in Day-to-Day Operations?
The Black Rifle Coffee Company franchise agreement requires that the franchise owner or a designated management personnel approved by them devote full time energy and efforts to the operation of the franchised business.
How many franchised locations?
At the end of 2022, there were 11 franchised outlets and 15 company owned outlets. There are a total of 26 locations. Current outlets are located in Virginia, Florida, Georgia, Oklahoma, Tennessee, Texas and Utah.
Is Black rifle Currently Accepting New Franchise Applications?
Black Rifle Coffee Company has a valid franchise disclosure document, so they can legally offer a franchise opportunity in any state where they are registered or where registration is not required. Early franchises are bringing their locations on board. Unfortunately, as of November 10, 2023, Black Rifle Coffee was not accepting new applications. We hope they start back soon as there appears to be a healthy demand. The fact that they took a pause on launching new franchise locations suggests they are focused on growing responsibly and ensuring new locations are successfully launched.
If you are ready to launch a franchised business and cannot approved by BRCC, you may want to consider alternatives, such Dunkin or Tim Hortons. We would be happy to help you learn more about these opportunities.
Where can i find the 2023 black rifle coffee franchise fDD?
Click here for the initial version of the 2023 franchise disclosure document issued on June 8, 2023. This disclosure document appears current as of July 14, 2023, but it may not be approved in all states. Further, changes may have been made to the document, or the franchisor may not be authorized to offer franchises in your state. You should reach out to Black Rifle directly if you are seriously considering a franchise opportunity. You should also check with them to see if they are currently offering franchises.
Alternatives to Black Rifle Coffee
We know you love Black Rifle Coffee, and we understand! However, it is important to consider each of your options. There are many established and emerging brands in the coffee space. Its important that every entrepreneur find the opportunity that is right for them. Here are a few others you may wish to consider:
- Dunkin
- Tim Hortons
- Biggby Coffee
- Maui Wowi
- Dunn Brothers
- The Human Bean
- Just Love Coffee
- Runza
- Caribou Coffee
- PLUS MANY MORE!
Need Help Exploring a Franchise Opportunity? Our Attorneys Offer Reasonably priced FDD review
Meet the Author
Derek A. Colvin
Derek is a graduate of Penn State Law and Old Dominion University. He started his legal career in public service as a prosecuting attorney before entering private practice. He currently serves business clients as a partner at Waldrop & Colvin, the law department for your business. He is laser-focused on delivering efficient and effective solutions for business legal needs. As a seasoned litigator set on thinking critically and communicating effectively, Derek is well-suited to advise and protect your business as an independent owner, franchisor, or franchisee.
Derek A. Colvin offers a free 15 minute consultation. You can call or email Derek Colvin directly or you can schedule a video conference today!
