If you’re thinking about starting a coffee shop, the Iced Coffee brand is a great choice. Iced Coffee is a growing name in the cold coffee business. The brand is famous for its smooth, sweet, and bold iced coffee drinks. It started with just one small shop but quickly became popular. Now, it has many outlets across cities and continues to expand.
Iced Coffee serves a wide range of cold brews, frappes, and iced lattes. They also offer iced teas, milk-based drinks, and light snacks. Their shops have a trendy and youthful look. The design is simple and modern, with cozy seating. This attracts students, office workers, and tourists alike.
The brand stands out because it focuses only on cold beverages. This makes it different from other coffee chains that serve both hot and cold drinks. The result is a product that is fresh, consistent, and high-quality. The brand uses premium beans, filtered water, and top-grade ice-making systems.
Iced Coffee Franchise Cost
Starting any franchise needs a good understanding of the costs. Iced Coffee offers a fair and competitive pricing model. The total cost to start your own Iced Coffee franchise depends on location and shop size. However, the main costs include the following:
Initial Franchise Fee:
The initial fee is $30,000. This fee gives you the right to use the brand name, logo, menu, and business model. It also covers training and support for setting up the store.
Equipment and Setup Costs:
You need special equipment to make iced coffee. These include ice machines, coffee brewers, fridges, display counters, and blenders. This may cost between $40,000 to $60,000, depending on the store size.
Rent or Property Cost:
If you rent a space in a mall or near a busy street, rent can be between $2,000 to $10,000 per month, depending on your city. You will also need to pay a security deposit upfront.
Interior Design and Branding:
To match the Iced Coffee brand look, interior design is important. This includes furniture, lighting, signage, wall art, and flooring. Expect to spend about $20,000 to $30,000.
Initial Inventory:
Before opening, you need coffee beans, syrups, cups, lids, napkins, straws, milk, and more. Initial stock may cost $5,000 to $8,000.
Marketing and Launch:
The brand recommends spending at least $5,000 on your grand opening. This includes local ads, banners, social media promotion, and discount offers.
Working Capital:
You will need cash to run the shop for the first few months. This includes staff salaries, utilities, supplies, and other costs. It’s smart to keep at least $10,000 to $15,000 in reserve.
Estimated Total Cost:
So, the total investment can range from $120,000 to $160,000. This is lower than other coffee brands like Starbucks or Dunkin’. It’s a good deal for a new business owner.
Iced Coffee Franchise Conditions
To protect the brand and ensure quality, Iced Coffee has set some rules for franchisees. These are the main franchise conditions you need to follow:
1. Business Background:
You don’t need to have owned a business before, but basic knowledge helps. You should have some experience in retail, hospitality, or customer service. If not, they will train you.
2. Financial Stability:
You must show proof of funds. You need at least $100,000 in liquid assets (cash, savings, etc.) and a net worth of $200,000 or more.
3. Location Approval:
The brand will help you find the right location. But they must approve it before you sign a lease. The shop must be in a high-traffic area.
4. Time Commitment:
This is not a side project. You must give full-time attention to your store. You or a full-time manager must be present daily.
5. Quality Control:
You must follow their recipes, use their approved suppliers, and maintain store cleanliness and service quality.
6. Store Size:
Your shop must be at least 600 to 1,000 square feet, with space for preparation, display, and customer seating.
7. Branding:
You must use official signs, colors, uniforms, menus, and promotions as per brand guidelines. No changes are allowed.
8. Training Attendance:
You must attend all training sessions. This includes one-week classroom training and two weeks of hands-on store training.
9. Franchise Agreement:
You need to sign a 10-year franchise agreement, which can be renewed.
These rules are not hard to follow. They help keep the brand strong and make sure every customer gets the same good experience.
Iced Coffee Franchise Process
Becoming a franchise owner is exciting. The Iced Coffee franchise process is simple and clear. Here is a step-by-step guide:
Step 1: Submit Inquiry
Go to the Iced Coffee official website. Fill out the franchise inquiry form. Share your contact details, city, background, and budget.
Step 2: Talk to Franchise Team
You will get a call or email from the franchise team. They will answer your questions and schedule a meeting or call.
Step 3: Franchise Application
If you’re still interested, fill out the full application form. It includes your financial documents and background info.
Step 4: Review and Approval
The team will check your documents. If approved, they will invite you for an interview.
Step 5: Franchise Disclosure Document (FDD)
You will get a Franchise Disclosure Document. This is a legal document with all the rules and fees. You should read it carefully and ask questions.
Step 6: Sign the Franchise Agreement
Once you agree, you sign the official Franchise Agreement and pay the $30,000 franchise fee.
Step 7: Site Selection
Work with the real estate team to find the right location. They will help with lease negotiation and store layout.
Step 8: Store Build-Out
Start the store setup. Use brand-approved contractors and designers. This step can take 1 to 3 months.
Step 9: Training
Attend training sessions on making drinks, using equipment, hiring staff, and handling customers.
Step 10: Grand Opening
Once everything is ready, plan your grand opening. The team will help with marketing, social media, and special deals.
From start to finish, the whole process takes 3 to 6 months.
Iced Coffee Franchise Profit
How much can you earn with an Iced Coffee franchise? While profits depend on location and management, here’s a general idea.
Average Monthly Sales:
A typical Iced Coffee store earns $25,000 to $50,000 per month in sales. If you’re in a high-traffic area like a mall or college town, sales can be higher.
Monthly Costs:
Here are some rough monthly expenses:
Rent: $3,000
Staff Salaries: $7,000
Ingredients & Supplies: $5,000
Utilities: $1,000
Marketing: $500
Miscellaneous: $500
Total: $17,000
Monthly Profit:
Let’s say your store earns $35,000 per month. After expenses of $17,000, your net profit is $18,000 per month.
Yearly Profit:
That’s about $200,000+ per year, if your store performs well.
Return on Investment:
If your initial cost was $150,000 and you earn $200,000 a year, you recover your investment in less than a year. This is a great return.
Also, the brand is growing fast. Early franchisees may get better locations and more support.
Conclusion
Yes, the Iced Coffee franchise is a smart business choice. It has:
- A strong and growing brand
- A simple and trendy product
- A focus on iced drinks, which are in demand
- A clear setup and support system
- A fair investment cost and high profit potential
Whether you’re a first-time business owner or an experienced investor, this franchise offers a great mix of value and return. With the right location and a hardworking team, your Iced Coffee shop can be both fun and profitable.
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