Tully’s Coffee Franchise Costs, Profit & Requirements For 2024

by Nick
Tully's Coffee Franchise

One of the standout features of Tully’s Coffee is its dedication to sourcing high-quality beans. The brand is known for its ethical sourcing practices, ensuring that the coffee is not only delicious but also responsibly produced. Tully’s Coffee works closely with coffee farmers around the world, establishing sustainable relationships that benefit both the producers and the environment. This commitment to quality and sustainability has helped Tully’s Coffee build a loyal customer base that appreciates the brand’s values and the superior taste of its products.

Tully’s Coffee Brand Introduction

Tully’s Coffee is a well-established coffee brand known for its commitment to quality and community. Founded in 1992 in Seattle, Washington, Tully’s Coffee has carved out a unique niche in the coffee industry by offering a cozy, inviting atmosphere coupled with premium coffee products. The brand prides itself on its handcrafted espresso beverages, brewed coffee, and a variety of pastries and light meals that cater to diverse tastes. With its roots deeply embedded in the rich coffee culture of Seattle, Tully’s Coffee has grown to become a beloved name among coffee enthusiasts.


see also: Cafe de Crie Franchise


Tully’s Coffee Franchise Cost

Becoming a part of the Tully’s Coffee franchise network involves several financial commitments. The initial franchise fee is a crucial component, serving as the entry cost for franchisees to gain access to the brand’s established business model, training programs, and ongoing support. As of the latest information, the initial franchise fee for Tully’s Coffee ranges from $30,000 to $50,000. This fee is a one-time payment made at the beginning of the franchise agreement.


In addition to the initial franchise fee, franchisees must also consider other startup costs associated with opening a Tully’s Coffee shop.


These costs include expenses for real estate, construction, equipment, signage, and initial inventory. The total investment required to open a Tully’s Coffee franchise can vary significantly depending on the location, size, and specific requirements of the coffee shop. On average, the total investment ranges from $200,000 to $400,000.

Franchisees are also responsible for ongoing fees, including royalty fees and marketing fees. The royalty fee, which is typically a percentage of the gross sales, is paid to Tully’s Coffee on a regular basis and helps cover the costs of continued support and brand development. The marketing fee contributes to the brand’s national and local marketing efforts, ensuring that Tully’s Coffee remains a well-known and competitive name in the coffee industry. These ongoing fees are essential for maintaining the quality and consistency of the franchise network.

Tully’s Coffee Franchise Conditions

Tully’s Coffee has specific conditions that potential franchisees must meet to be considered for a franchise. These conditions are designed to ensure that franchisees are well-prepared to operate a successful coffee shop and maintain the high standards associated with the Tully’s Coffee brand.

Financial Requirements: Franchisees must have a minimum net worth and liquid assets to qualify for a Tully’s Coffee franchise. This ensures that they have the financial stability to cover the initial investment and sustain the business during its early stages. Typically, a minimum net worth of $500,000 and liquid assets of $150,000 are required.

Experience: While previous experience in the food and beverage industry is not mandatory, it is highly beneficial. Tully’s Coffee prefers franchisees with a background in business management, customer service, or hospitality. This experience helps franchisees effectively manage their coffee shop and provide excellent service to customers.

Commitment: Franchisees must demonstrate a strong commitment to the Tully’s Coffee brand and its values. This includes a willingness to adhere to the brand’s operational guidelines, participate in training programs, and engage in ongoing support and development activities.

A genuine passion for coffee and customer service is also essential.

Location: The success of a Tully’s Coffee franchise largely depends on its location. Franchisees must work with the franchisor to select a suitable site that meets the brand’s criteria for visibility, accessibility, and customer traffic. The chosen location should ideally be in a high-traffic area with a strong potential customer base.

Training and Support: Franchisees are required to complete the initial training program provided by Tully’s Coffee. This comprehensive training covers all aspects of running a Tully’s Coffee shop, from coffee preparation and customer service to marketing and financial management. Franchisees must also participate in ongoing training and support initiatives to stay updated on best practices and new developments.

Tully’s Coffee Franchise Process

The process of becoming a Tully’s Coffee franchisee involves several key steps, each designed to ensure that both the franchisee and the franchisor are well-prepared for a successful partnership. Here is an overview of the typical franchise process:

Initial Inquiry: Prospective franchisees begin by submitting an initial inquiry form on the Tully’s Coffee website. This form collects basic information about the applicant and their interest in the franchise opportunity.

Application and Evaluation: Once the initial inquiry is received, the franchisor reviews the applicant’s qualifications and background. If the initial evaluation is favorable, the applicant is invited to complete a more detailed franchise application.

This application includes information about the applicant’s financial status, experience, and business goals.

Franchise Disclosure Document (FDD): If the application is approved, the franchisor provides the prospective franchisee with a Franchise Disclosure Document (FDD). The FDD contains detailed information about the franchise opportunity, including fees, obligations, and the rights of both parties. Prospective franchisees are encouraged to review the FDD carefully and seek legal and financial advice if needed.

Discovery Day: Prospective franchisees who are seriously considering the opportunity are invited to attend a Discovery Day. This event is typically held at the franchisor’s headquarters and provides an in-depth look at the Tully’s Coffee brand, its operations, and the support provided to franchisees. Discovery Day is also an opportunity for the franchisor to assess the prospective franchisee’s suitability for the franchise.

Franchise Agreement: If both parties are satisfied following Discovery Day, the next step is to sign the franchise agreement. This legally binding document outlines the terms and conditions of the franchise relationship, including the initial franchise fee, royalty fees, and other obligations.

Site Selection and Build-Out: Once the franchise agreement is signed, the franchisee works with the franchisor to select a suitable location for the coffee shop. This process includes site visits, negotiations with landlords, and securing necessary permits. After the site is finalized, the build-out phase begins, which involves designing and constructing the coffee shop according to Tully’s Coffee’s specifications.

Training: Before the coffee shop opens, the franchisee and their key staff members must complete the comprehensive training program provided by Tully’s Coffee. This training covers all aspects of operating the coffee shop, ensuring that the franchisee is well-prepared to deliver the high-quality experience that customers expect from Tully’s Coffee.

Grand Opening: With the build-out complete and training finished, the coffee shop is ready to open its doors to the public.

The franchisor often provides support during the grand opening to ensure a smooth launch. This support may include marketing assistance, on-site guidance, and additional training as needed.

Ongoing Support: After the grand opening, franchisees continue to receive ongoing support from the franchisor. This support includes regular updates, training sessions, marketing assistance, and operational guidance. The goal is to help franchisees maintain high standards and grow their business successfully.

Tully’s Coffee Franchise Advantages

Franchising with Tully’s Coffee offers several significant advantages that make it an attractive opportunity for aspiring entrepreneurs. Here are some of the key benefits:

Established Brand: Tully’s Coffee is a well-known and respected brand with a strong reputation for quality and customer service. Franchisees benefit from the brand recognition and customer loyalty that Tully’s Coffee has built over the years.

Comprehensive Training and Support: Tully’s Coffee provides extensive training and ongoing support to franchisees, ensuring that they have the knowledge and tools needed to operate their coffee shop successfully. This support includes initial training, marketing assistance, operational guidance, and regular updates.

High-Quality Products: Tully’s Coffee is committed to sourcing and serving the highest quality coffee and food products.

Franchisees can take pride in offering customers premium beverages and snacks that meet the brand’s high standards.

Sustainable Practices: The brand’s commitment to ethical sourcing and sustainability resonates with customers who value responsible business practices. Franchisees can leverage this commitment to attract and retain environmentally conscious customers.

Flexible Store Formats: Tully’s Coffee offers flexible store formats that can be adapted to various locations and market conditions. Whether it’s a standalone coffee shop, a kiosk, or a co-branded location, franchisees have options to suit their specific needs and preferences.

Strong Community Focus: Tully’s Coffee emphasizes community engagement and creating a welcoming atmosphere for customers. Franchisees can build strong connections with their local communities, fostering customer loyalty and repeat business.

Proven Business Model: The Tully’s Coffee franchise model has been refined over the years to maximize efficiency and profitability. Franchisees benefit from a tried-and-true business model that reduces the risks associated with starting a new business from scratch.


In conclusion, franchising with Tully’s Coffee offers a unique opportunity to be part of a respected and beloved brand in the coffee industry. With a strong commitment to quality, sustainability, and community, Tully’s Coffee provides franchisees with the support and resources needed to succeed. Whether you’re a seasoned entrepreneur or new to the coffee business, Tully’s Coffee offers a compelling franchise opportunity that combines passion for coffee with sound business practices.


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