---
title: "They Borrowed $40,000 From Friends and Family to Open a Coffee Kiosk — Now Their Franchise Is Worth $1 Billion"
url: https://burnaze.com/article/f142f049-cf1d-4968-b706-4d9b95c422ad
source: "Entrepreneur Franchise"
original_url: https://www.entrepreneur.com/buying-a-franchise/coffee-kiosk-franchise-is-worth-1-billion
author: "Jonathan Small"
category: "Coffee & tea"
industry: "Restaurants"
segment: "Coffee & tea"
topics: ["Development & multi-unit","Technology"]
published: 2026-04-28T16:30:00.000Z
modified: 2026-10-31T13:17:43.769Z
image: https://www.entrepreneur.com/wp-content/uploads/sites/2/2026/04/HOMEPAGE_BARISTA-copy.jpg
---

# They Borrowed $40,000 From Friends and Family to Open a Coffee Kiosk — Now Their Franchise Is Worth $1 Billion

**TL;DR:** Scooter's Coffee, founded in 1998 with a $40,000 loan from friends and family, has grown into a drive-thru franchise empire valued at $1 billion with 912 locations across 32 states. The company's franchise model is highly profitable, with an estimated 62.5% net margin for the holding company.

*By Jonathan Small, originally published in Entrepreneur Franchise on 2026-04-28. [Read the original](https://www.entrepreneur.com/buying-a-franchise/coffee-kiosk-franchise-is-worth-1-billion).*

## Story

Don and Linda Eckles started Scooter’s Coffee in a tiny, renovated Chinese restaurant. Today, they have 912 franchises.

Don and Linda Eckles couldn’t get a bank loan, so they borrowed $40,000 from friends and family to open a coffee kiosk in Omaha.

The couple told Forbes they worked every shift for the first four months at the 650-square-foot location, a remodeled Chinese restaurant. Linda stamped a smiley face sticker on every coffee lid. After breaking even, they opened a second location. By the fifth store, they’d borrowed $150,000 to build two kiosks at a nearby mall, but construction costs nearly bankrupted them. They started franchising in 2001 at the request of friends and customers who wanted to open their own locations.

Fast forward 25 years: Scooter’s Coffee now has 912 locations across 32 states. Those franchises pulled in $859 million in sales last year. The franchise model is insanely profitable — nearly all costs are handled by franchisees, giving the Eckles’ holding company an estimated 62.5% net margin. Top franchisees post net income margins over 20%. Last year, someone offered to buy the entire company for $1 billion. The Eckles turned it down cold.

## Entities

- Restaurants (sector)
- franchise growth (topic)
- Entrepreneur (publication)
- franchise model (topic)
- Forbes (company)
- Scooter's Coffee (company)
- Don Eckles (person)
- Linda Eckles (person)
- coffee franchise (topic)
- Omaha (location)
- Jonathan Small (person)
- valuation (topic)

---
Originally reported by Jonathan Small, Entrepreneur Franchise (https://www.entrepreneur.com/buying-a-franchise/coffee-kiosk-franchise-is-worth-1-billion). Summarized by Burnaze (https://burnaze.com/article/f142f049-cf1d-4968-b706-4d9b95c422ad).