Verified — real FDD extraction
The Coffee Bean & Tea Leaf
Food & Dining · independent · est. —
The Coffee Bean & Tea Leaf is a coffeehouse chain selling espresso drinks, brewed coffees, teas, and light food. A franchisee operates a cafe storefront with a full build-out, serving daily coffee and tea customers for dine-in and takeaway.
The Coffee Bean & Tea Leaf net unit count declined -8.2% from 2023–2025 per its FDD Item 20.
New to franchising? Start here
A franchise is a business where you (the franchisee) pay a company (the franchisor) for the right to open and run a location using their brand and system — think a local Anytime Fitness or Taco John's owned by a small-business owner, not the corporation.
Before you can buy in, U.S. law requires the franchisor to give you a Franchise Disclosure Document (FDD) — a long legal filing covering its fees, finances, and history. The numbers on this page come straight from that document:
- Franchise fee — the one-time cost to buy in.
- Royalty — the ongoing cut of your sales you pay the franchisor.
- Item 20 — how many locations opened and closed, the basis for our verdict (from Proven & strong down to Distressed — or Too new to judge).
The verdict
Proven & steady
Distress
A real track record with an unremarkable region of the ledger: neither the growth nor the exits stand out, for better or worse. The main concern in the record: the system is shrinking.
Exit rate · latest year
14.1%
vs 8.6% across 137 food & dining systems
Cost to open
$884K–$1.5M
Item 7 total investment range
SBA loan defaults
No loan record
no SBA 7(a)/504 loans found for this brand
Behind the verdict
the record, factor by factor · Item 20
3-yr trend · Item 20 Table 1
terminations + ceased-ops vs. all exits · Table 3
transfers vs. base · Table 3
actual vs. projected openings · Table 5
Item 19 disclosure + completeness
Systemwide units
2023–2025
Survival record
FDD Item 20 · outlet status by year
In fiscal 2025, 11 of 78 franchised outlets left the system — a 14.1% annualized exit rate, vs 8.6% across 137 food & dining systems. Not every exit is a failure — but this is the measurable floor.
Show the outlet tables ↓Hide the evidence ↑
| Status (FTC) | 2023 | 2024 | 2025 |
|---|---|---|---|
| Outlets at start | 198 | 195 | 193 |
| Opened | 1 | 8 | 2 |
| Transfers | 0 | 0 | 2 |
| Terminations | 0 | 0 | 1 |
| Non-renewals | 6 | 3 | 7 |
| Reacquired by franchisor | 0 | 0 | 0 |
| Ceased — other reasons | 0 | 3 | 3 |
| Outlets at end | 195 | 193 | 179 |
| Net change | -3 | -2 | -14 |
What it costs — and what it drags
FDD Items 5–7 · fees, investment, royalty
Buying in means a $25K franchise fee (Item 5) and a total investment of $884K–$1.5M (Item 7). The franchisor publishes an earnings claim (Item 19) — read its methodology closely.
To open (Item 7)
$884K–$1.5M
all-in investment range
Franchise fee (Item 5)
$25K
upfront, one-time
Royalty (Item 6)
5.5%
of sales, ongoing
Your figure — cross-check against this brand's Item 19 and current-owner validation.
Royalty you'd pay / yr
$55K
5.5% of sales, before profit
Over a 10-yr term
$550K
royalties alone, excl. ad fund
This is not profit. It's the only money the FDD actually pins down — what you put in, and the royalty you owe on every dollar of sales. Your real take-home depends on labor, rent, food cost, and ramp-to-breakeven, none of which any FDD discloses.
Build a real pro-forma for The Coffee Bean & Tea Leaf with an independent CPADistress signals
news-sourced · bankruptcies, closures, lawsuits
No recent closures, bankruptcies, or major lawsuits found in the news for The Coffee Bean & Tea Leaf. That's a good sign — but it reflects news coverage, not a guarantee.
A broker is paid by the franchisor to place you. An independent CPA is paid by you — and the job is pressure-testing The Coffee Bean & Tea Leaf's numbers, including talking you out of a bad deal.
Talk to an independent CPA before you buy →The Coffee Bean & Tea Leaf franchise questions, answered from the filings
What percentage of The Coffee Bean & Tea Leaf franchises closed last year?
In The Coffee Bean & Tea Leaf's latest FDD Item 20 (fiscal 2025), 11 of 78 franchised outlets left the system — an annualized exit rate of 14.1% — compared with 8.6% across 137 food & dining systems tracked here. That counts terminations, non-renewals, and "ceased operations — other reasons." There is no official failure rate, and not every exit is a failure, but this is the measurable floor.
How much does a The Coffee Bean & Tea Leaf franchise cost?
Per The Coffee Bean & Tea Leaf's 2026 FDD, buying in requires an initial franchise fee of $25K (Item 5) and a total initial investment of $884K–$1.5M (Item 7).
What royalty does The Coffee Bean & Tea Leaf charge?
The Coffee Bean & Tea Leaf charges an ongoing royalty of 5.5% of gross sales, per Item 6 of its 2026 FDD.
Does The Coffee Bean & Tea Leaf disclose earnings (Item 19)?
Yes — The Coffee Bean & Tea Leaf makes a financial performance representation in Item 19 of its 2026 FDD. Read it closely: franchisors choose which units and which metrics to include.