The Human Bean Franchise Investment Guide 2024: Costs, Fees & Profit Insights

Company overview

The Human Bean is a coffeehouse franchise based in Medford, Oregon, that is known for its drive-thru coffee stands.

The Human Bean began its journey in 1998, opening its first drive-thru locations in Ashland and Central Point, Oregon. The brand quickly gained popularity, leading to the opening of its first franchise in Klamath Falls, Oregon, in 2003. The following year, The Human Bean expanded outside of Oregon, launching a drive-thru in Evans, Colorado. In 2005, the brand introduced its Coffee for a Cure event, supporting breast cancer diagnosis, treatment and education, which has become the brand’s biggest annual give-back day.

In 2008, The Human Bean added the Java Chip, made with Ghirardelli dark chocolate, to its menu. By 2013, the brand's community involvement grew with the first Food Drive and Earth Day events. In 2015, it launched Mochas for Men, focusing on men's health issues. The Human Bean refreshed its logo in 2016 to better reflect its culture, values and community.

The Human Bean continued to innovate, launching a rewards app in 2018 to replace traditional punch cards, and introducing Cold Foam for their Cold Brew in 2021. By 2022, the rewards program had grown significantly, with over 500,000 app users enjoying benefits like free birthday drinks and Double Reward Wednesdays.

In 2023, The Human Bean celebrated its 25th anniversary and expanded to over 280 locations across 23 states.

Business model

The Human Bean operates a drive-thru coffee model that emphasizes quality, convenience and customer service. The franchise focuses on providing a unique experience with each visit, highlighted by their signature “bean on top” of every drink.

Notably, franchisees benefit from a business model that does not require royalty fees, instead earning revenues through bulk sales of coffee beans, cups, lids and other supplies. Additionally, all locations contribute 1% of gross sales to a brand fund for promotional activities.

The Human Bean does not publicly disclose specific earnings for franchisees. However, the absence of traditional royalty fees and the support structure in place suggests a strong potential for profitability and growth.

Investment costs

The initial investment required to open a The Human Bean franchise ranges from $552,350 to $1,058,850, depending on site development specifics. This includes the franchise fee, equipment, initial training and other startup costs.

The initial franchise fee for The Human Bean is $30,000. Additionally, franchise candidates must have a minimum net worth of $400,000 and at least $200,000 in liquid assets.

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