Scooter’s Coffee^®

Food & Beverage • Year: 2026

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What Is Scooter’s Coffee?

Scooter’s Coffee is a quick-service coffee franchise offering and selling espresso drinks, smoothies, baked goods and related items. Stores operate primarily through drive-thru/drive-up windows and indoor ordering/service counters, with some locations providing substantial indoor seating, and revenue is derived mainly from the sale of espresso-based beverages, smoothies and baked goods. Franchise models include Drive-Thru Kiosk Stores typically located in parking lots near other retail shopping, End Cap Stores in strip centers as end-cap space with indoor ordering and a drive-up window, and Other Stores in free-standing buildings or institutional locations such as hospitals, malls, schools, airports and sporting venues.

Scooter’s Coffee Franchise: Pros and Cons

The franchise's biggest strength is its scale-906 total outlets with 882 franchised units (both top 10% for Food & Beverage), which delivers brand recognition and supplier leverage; its biggest risk is elevated turnover, with 24 reacquired outlets (top 5%), indicating franchisees are exiting at higher-than-normal rates.

Pros

Training and support score is 100-well above typical for this industry (top quarter)-which means you should get exceptionally thorough onboarding and ongoing field support as an operator.

Franchise Stability Score is Good (78/100), above typical for this industry, indicating better-than-average franchisee retention and a more stable operator base.

System scale is large: 906 total outlets with 882 franchised units, both well above typical for Food & Beverage (top 10%), giving you brand recognition, supplier leverage and a broad peer network to tap into.

Cons

Company-owned units count is 24, well above typical for all systems (top 10%), which may indicate the franchisor operates a significant corporate fleet rather than prioritizing franchise expansion and deserves further scrutiny.

Reacquired outlets are 24, well above typical for Food & Beverage (top 5%), primarily reflecting franchisees exiting the system and signaling elevated operator turnover.

Franchisor-initiated enforcement actions are 2, well above typical for Food & Beverage (top 10%), showing the franchisor actively pursues legal enforcement and implying tighter operational scrutiny and possible friction with operators.

Lawsuits & Legal Risk

NORMAL

Scooter’s Coffee: Part 1 - Active enforcement of system standards: recent AAA collection actions allege unpaid royalties, marketing contributions, technology fees, and supply‑chain charges by franchisees. Part 2 - Advice: review royalty and marketing fee calculations, supply agreements, cure/termination clauses, audit/accounting rights, and arbitration provisions in the FDD and franchise agreement.

Territory Protection

35/100

NORMAL

Scooter’s Coffee grants site-specific, non-exclusive territory rights via Franchise and MSD Agreements, providing Franchised Locations or Development Areas rather than exclusive territories. They are contingent on meeting development schedules and performance quotas; the franchisor may develop nearby units, affecting market density, and sell via e-commerce and other alternative distribution channels.

Training & Support

100

Excellent

Scooter’s Coffee provides a Comprehensive 142-hour training curriculum designed to prepare four individuals for launch, combining classroom instruction, systems training, and hands-on operational practice. The program includes on-site launch assistance for operational readiness, with on-site support available post-launch and additional support services subject to separate fees; travel and lodging expenses are the responsibility of the franchisee.

Franchisee Stability

78/100

Good

Scooter’s Coffee earns a Good Stability Score. Three-year turnover of 2.79% is well below the typical Food & Beverage franchise (around 6%). Out of 58 total exits, ceased operations dominated with 46, alongside 8 franchisor buybacks, 3 terminations, and 1 non-renewal.

The dominance of ceased operations points to location-level economics: operators likely chose to close underperforming locations rather than systemic franchisor-franchisee friction. Beyond its industry-relative position, a 2.79% three-year turnover rate is genuinely exceptional in absolute terms across all of franchising. Ask the franchisor for detail on where and why closures clustered, and verify unit-level recovery plans and historical sales at affected sites. For prospective franchisees, examine unit-level economics in the geographies where closures have concentrated.

Unit Growth Analysis

Scooter’s Coffee has grown from roughly 400 to 906 units since 2022 but is now slowing to about 6.7% year-over-year, signaling a move from rapid roll-out toward market saturation. For a new owner that means you’re buying into an established, mostly franchised system where the upside is steady unit cash flow rather than big territory appreciation - expect tougher competition for prime sites, more emphasis on squeezing margin from existing locations, and the need to validate unit-level economics carefully before committing.

How Much Do Scooter’s Coffee Franchise Owners Make?

Scooter’s Coffee franchise locations reported average gross sales of $999,869 and median gross sales of $966,739 in 2026, based on financial performance data disclosed in Item 19 of the Franchise Disclosure Document.

Average Gross Sales:

$999,869

Median Gross Sales:

$966,739

High Gross Sales:

$2,458,874

Low Gross Sales:

$337,233

Sample Size:

615

Percent Attaining Average:

47.0%

Audit Status:

Unaudited

Franchise vs Corporate Performance: Most recent-year (2025) per-store operating results (Reporting/Participating stores): Participating Kiosk average Gross Sales $999,869 (median $966,739). All Reporting Kiosk Stores (n shown in Section C) had Gross Sales ~$998,869, Net Sales $923,805, Cost of Goods Sold $322,691, Gross Profit $601,114 and EBITDA $134,457 (Net Profit Margin 14.6%). Reporting End Cap Stores (2025) show higher average Gross Sales ($1,082,458), Net Sales $994,655, COGS $339,755, EBITDA $155,439 (Net Profit Margin 15.6%). In short, End Cap reporting stores on average generate higher top-line and slightly higher margin than kiosk reporting stores in 2025.

Performance Variability Analysis: There is substantial dispersion across stores. For Participating Kiosk Stores (2025) Gross Sales range was $337,233 (low) to $2,458,874 (high); median $966,739. Top quartile Reporting Kiosk EBITDA ~ $273,683 (net margin ~20.7%) vs bottom quartile EBITDA ~$4,524 (net margin ~0.8%). For End Cap reporting stores 2025 Gross Sales range $339,161 to $2,261,196; median $1,076,758; EBITDA median ~$153,411. Approximately 47% of participating kiosk stores exceeded the 2025 average gross sales (289 stores / 47%), demonstrating that the mean is influenced by high-performing outliers and that roughly half of stores perform below the average.

Data Scope and Limitations: Figures are compiled from ‘Participating’ and ‘Reporting’ franchise locations; counts differ by table (e.g., 768 franchised Kiosk Stores in system, 761 participating in 2025, fewer provided full financial data). The Item 19 numbers are unaudited summaries based on store-reported data; the FDD notes exclusions (stores that did not report complete data were removed). The franchisor also imputed certain estimated expenses (e.g., 6% royalty, 2% marketing contribution, monthly $350 Technology Fee and fixed Overhead estimates). These methodological choices and exclusions affect comparability and mean that individual store results may differ materially from the averages reported.

Frequently Asked Questions

Is Scooter’s Coffee a good franchise to own?

Whether Scooter’s Coffee is a good franchise depends on your goals, experience, and local market. Key factors from the 2026 FDD: Scooter’s Coffee operates 906 locations, received a legal risk score of 93/100, a training and support score of 100/100. Financial performance data is disclosed in Item 19. Prospective franchisees should review the full Franchise Disclosure Document and consult with a franchise attorney before making any investment decision.

What is the failure rate of Scooter’s Coffee franchises?

In the 2026 FDD, Scooter’s Coffee reported 1 terminated franchises and 1 non-renewals out of 906 total locations. Franchise closures can result from many factors including market conditions, operator decisions, lease expirations, and franchisor enforcement actions. The FDD's Item 20 provides the most detailed unit turnover data.

How long does it take to break even with a Scooter’s Coffee franchise?

Break-even timelines for Scooter’s Coffee franchises are not disclosed in the 2026 Franchise Disclosure Document. Break-even periods vary significantly based on initial investment level, local market conditions, operating costs, and revenue ramp-up speed. Prospective franchisees should build a pro forma financial model using Item 7 cost estimates and, where available, Item 19 financial performance data from the FDD.

Is Scooter’s Coffee a franchise or a corporate-owned business?

As of the 2026 FDD, Scooter’s Coffee operates 882 franchised locations and 24 company-owned locations. Franchise opportunities are available through the franchisor's disclosure process.

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