The Coffee Bean & Tea Leaf

The Coffee Bean & Tea Leaf

Information based on 2024 FDD

Food & Beverage · Coffee & Tea

Investment min
$941K
Total: $941K–$1M
Avg gross revenue
$973K
Unit-level, 2024
Franchise fee
$13K–$25K
Per current disclosure
Royalty
5.5%
of gross revenue
Locations
77
Franchising since 1999

Description

What is The Coffee Bean & Tea Leaf?

The Coffee Bean & Tea Leaf, established in 1963, stands as one of America's pioneering specialty coffee and tea retailers, offering a premium beverage experience that has delighted customers for over half a century. This beloved franchise has built its reputation on delivering exceptional handcrafted drinks, featuring their signature coffee roasts and an extensive collection of whole leaf teas.

What sets The Coffee Bean & Tea Leaf apart is their unwavering commitment to quality and authenticity. Each location carefully selects and roasts their coffee beans to perfection, while their tea leaves are hand-blended and specially crafted to create distinctive flavors that have earned a loyal following. Their menu includes an impressive array of hot and cold beverages, from their famous Ice Blended® drinks to artisanal espresso creations and innovative tea lattes.

The franchise is renowned for its welcoming atmosphere and exceptional customer service, creating comfortable spaces where communities gather to work, study, or simply enjoy a moment of relaxation. Their locations typically feature both indoor and outdoor seating areas, making them ideal spots for various customer needs. The brand has consistently evolved to meet modern consumer preferences, offering mobile ordering, drive-thru services at select locations, and a rewards program that builds customer loyalty.

For potential franchisees, The Coffee Bean & Tea Leaf represents an opportunity to join a respected brand with a proven track record in the competitive coffee and tea market. Their comprehensive training programs and established operating procedures help ensure consistency across all locations while maintaining the high standards that customers have come to expect from this iconic brand.
  • 60 years premium coffee heritage since 1963
  • Southern California-born specialty coffeehouse concept
  • Premium handcrafted made-to-order beverages
  • Extensive coffee and tea selections from around the world
  • Established franchise system with 188 active units
  • Strong financial performance exceeding sub-sector averages

Location Analysis

Where The Coffee Bean & Tea Leaf wins

The Coffee Bean & Tea Leaf, established in 1963, maintains a significant presence across multiple states with widespread coverage throughout their operating territory. California serves as the brand's stronghold, particularly concentrated in the Los Angeles metropolitan area, while Arizona maintains a notable presence. The franchise has established strategic footholds in Illinois and Massachusetts, with additional market penetration across several other states including Georgia, New Jersey, Nevada, New York, Texas, Alabama, and Colorado, indicating a strategic coast-to-coast expansion pattern.

Customer satisfaction metrics are notably strong, with an average rating of 4.41 across numerous customer reviews, demonstrating consistent service quality and positive brand reception. The strong concentration in California markets shows proven success in affluent, urban areas with sophisticated coffee consumers and high foot traffic.

Ideal locations typically feature high-visibility storefronts in upscale shopping centers, business districts, or near university campuses, as exemplified by their presence in Los Angeles International Airport. The brand shows particular success in markets with higher disposable income and established coffee culture. Significant expansion opportunities exist in the Northeast and Southeast regions, where the brand currently maintains limited presence but shows strong market potential.

Prospective franchisees should focus on metropolitan areas with median household incomes above $75,000, strong daytime population density, and proximity to office complexes or educational institutions. The brand's varying presence across states suggests ample territory availability for expansion in both established and emerging markets.
Total US locations
188
Franchise units
77
Corporate locations
111
Avg. sq. footage
N/A

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Financial Analysis

The numbers behind The Coffee Bean & Tea Leaf

Avg gross revenue$973,213
Investment range$940,665 – $1,430,177
Investment midpoint$1,185,421
Brand fund2% - 4%
Royalty5.5%
Franchise fee$12,500–$25,000
Min. net worth
Min. liquid capital
The Coffee Bean & Tea Leaf requires a substantial investment of $940,665 - $1,430,177, positioning it as a premium franchise opportunity in the coffee sector. This investment significantly exceeds sub-sector averages of $296,954 - $610,306, reflecting the brand's established market position and comprehensive operational infrastructure. With gross revenue of $973,213, the franchise demonstrates strong financial performance that substantially outpaces the sub-sector average of $307,288.

The franchise demonstrates strong system maturity with 60 years of operational history since 1963 and 188 active units nationwide. This extensive track record provides operational stability and proven business systems within a competitive sub-sector of 77 coffee and tea franchises. The brand's Southern California heritage and premium positioning differentiate it within the competitive coffeehouse landscape.

The coffee industry benefits from consistent consumer demand and evolving preferences toward premium, specialty beverages. The Coffee Bean & Tea Leaf's focus on made-to-order beverages aligns with current market trends favoring experiential retail and personalization.

Ideal investors should possess substantial liquid capital and net worth to support the premium investment requirements. The operational complexity of specialty coffee preparation, inventory management, and staff training requires hands-on management commitment or experienced operational partners.

Prospective franchisees must thoroughly review the Franchise Disclosure Document and conduct comprehensive due diligence before making investment decisions.
Did you know? Starting your own The Coffee Bean & Tea Leaf franchise - known for their premium coffee blends and signature Ice Blended drinks - requires a total investment between $940,665 and $1,430,177, which covers everything from the franchise fee and equipment to build-out costs and working capital needed to bring this beloved California-born coffeehouse concept to your community.

Financing partners

Vetted partners, tailored to franchisees

Your Franzy advisor can connect you with these partners later in the process — competitive rates, specialized in franchise financing.

FranFund

Lender

CRF USA

Nonprofit SBA lender; provides financing for franchise acquisitions, startups, and expansion.

Lender

First Bank of the Lake

Lender

Pension Pros

Lender

FDD Item 7

Initial investment range

$941K–$1M
Most common
$940,665
Minimum
$1,185,421
Midpoint
$1,430,177
Maximum

Per FDD Item 7, total initial investment ranges from $940,665 to $1,430,177. The midpoint $1,185,421 is what most franchisees report at signing — financing typically reduces cash-at-close by 80–90%. Knowing the investment range helps you plan confidently and ensure you're fully prepared to make the leap.

FDD Item 19

Average gross sales

$2M$1M$900K$600K$300KN/A
$915K
$861K
$973K
2022
2023
2024
Avg
$917K
YOY change (2023 -> 2024)
+13%

According to Item 19 of the Franchise Disclosure Document, The Coffee Bean & Tea Leaf has an average gross revenue of $973K. (Note: This information is based on the latest FDD in our records. Please review the Franchise Disclosure Document (FDD) and confirm this information directly with the brand. We make no claims of accuracy for the information presented.)

Growth over time

Franchise footprint

+1% YoY
250200150100500
2019
2020
2021
2022
2023
2024
188 units open as of 2024 FDD+1 in last 12 mo

2024 Franchise Disclosure

FDD documents

Below are items 2, 3, 4, 7, 11 and 19 for The Coffee Bean & Tea Leaf's 2024 FDD. The complete FDD is delivered to you directly by the franchisor, per the FTC Franchise Rule.

Estimated initial investment
FDD Item 7 · PDF
Financial performance representations
FDD Item 19 · PDF
Members-only items
Executive team
FDD Item 2 · PDF
Litigation
FDD Item 3 · PDF
Bankruptcy
FDD Item 4 · PDF
Franchisor assistance
FDD Item 11 · PDF
Members only
Unlock the 2024 FDD

Connect to download Items 2, 3, 4, and 11 — direct from the franchisor.

Buyer FAQs

Frequently asked questions

The initial investment for a The Coffee Bean & Tea Leaf franchise typically ranges between $940,665.00 and $1,430,177.00. This includes the franchise fee, equipment, real estate, and other startup costs. To get a detailed breakdown and better understand the financial requirements, we recommend scheduling a call with the Franzy team. We'll walk you through the specifics and answer any questions you might have. For more detailed information, refer to the financial sections of the FDD.

Disclaimer. The information provided on this page is based on the latest Franchise Disclosure Document (FDD) that is publicly available and that we have on record, which was issued in 2024. This information is for informational purposes only and is not intended to constitute legal, financial, or business advice. We make no guarantees or claims regarding the completeness or accuracy. For the most current and detailed information, we recommend consulting the franchisor directly for the most recent FDD and regarding any questions that you may have about the information provided.

The Coffee Bean & Tea Leaf
The Coffee Bean & Tea Leaf
$973K avg revenue · 77+ US franchises

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