Welcome to the Franzy Five — your 5-minute fix on the most compelling franchises and the trends shaping the industry.
Each week, we spotlight one standout concept worth watching, then round up key stories driving growth across food, fitness, home services, and beyond. Think of it as your shortcut to understanding where the smartest money in franchising is headed — and why. |
☕ The Mission-Driven Coffee Brand With Two Ways In |
This week's spotlight is Bitty & Beau's Coffee — and it doesn't just sell coffee, it sells a movement. Founded by a CNN Hero of the Year and staffed primarily by adults with intellectual and developmental disabilities, Bitty & Beau's has built a national following by offering something most coffee shops can't: a genuine human experience. Now, with a brick-and-mortar Shop model and a lower-cost mobile Cruiser option, there are two entry points to join. |
⚡ Fast Facts | | 🏢 Industry | Coffee & Specialty Beverages | | 💰 Investment Range | $185,600 – $847,750 | | 💸 Franchise Fee | $25K (Cruiser) / $50K (Shop) | | 🔁 Royalty | 6% of Gross Sales | | 📊 Item 19 | Not disclosed | | 📍 System Size | ~19 locations across 12 states | | 🗓 Founded / Franchising | 2016 / 2020 |
|
|
The Brand Story Two parents of children with Down syndrome learned that ~80% of adults with intellectual and developmental disabilities are unemployed — and decided to do something about it. They opened a coffee shop in Wilmington, NC in 2016 staffed primarily by people the rest of the market overlooks. Lines wrapped around the block. The founder was named CNN Hero of the Year in 2017. The brand calls itself "a human rights movement disguised as a coffee shop" — and people have planned vacations around visiting. Today the system spans ~19 locations, with 5 corporate shops owned by the Wright family and 12+ franchise units across 10 states. The company runs its own automated roastery with 1M+ lbs of annual capacity. Franchisees buy all coffee, cups, and merchandise from the brand — keeping quality tight and operations simple. |
🏪 The ShopInvestment: $457K – $848K Franchise Fee: $50,000 Footprint: ~1,500 sq ft Term: 10 years Territory: 5-mile radius | 🚐 The CruiserInvestment: $186K – $231K Franchise Fee: $25,000 Footprint: ~93 sq ft trailer Term: 5 years Territory: Flexible / mobile |
|
📊 The Data Angle No Item 19 financial performance data is disclosed — standard for a younger system (more on that below). The Shop model is a full retail buildout with $200K–$500K in leasehold improvements and a $25K local ad spend commitment in year one. The Cruiser skips the storefront entirely — no buildout, $50/week flat marketing contribution, and up to 100% financing through a brand-affiliated lender. It could work standalone or as a proof-of-concept before committing to a full Shop. Growth-wise: the system went from 5 to 12 franchise units between 2022 and 2024, with recent openings in Ohio, Rhode Island, and Texas pushing the total past 19. Five signed agreements are in the pipeline. Small system = first-mover territory advantage, but also less peer benchmarking and a shorter track record. That's the tradeoff at this stage. |
🤔 Wait — Why No Item 19? Item 19 is where a franchisor can share financial performance data — revenue, gross sales, cost breakdowns. But it's completely optional. Many franchisors, especially younger systems, skip it. Here's why: ⚖️ Legal risk. Published numbers become legally binding representations. Underperforming franchisees can use them as grounds for litigation. 📊 Small sample size. With 12 franchise shops, one outlier can skew averages in misleading ways. 🔀 Wide variation. Locations across different markets and formats (Shop vs. Cruiser) make a single average number reductive. Bottom line: No Item 19 ≠ not profitable. It means the franchisor isn't making a formal claim. Your best move? Talk to current franchisees — their contact info is in Exhibit C of the FDD. |
|
💡 The Franzy Take Most coffee franchises compete on speed, convenience, or price. This one competes on purpose — and customers come back because the experience makes them feel something. That emotional pull generates organic press, community buy-in, and foot traffic that most brands spend millions trying to manufacture. The dual-model approach is smart. The Cruiser gets you in at under $231K with up to 100% financing. The Shop delivers the full flagship experience. For the right operator who's mission-aligned and wants to build something meaningful while building a business, this is one of the most compelling concepts in the space. |
|
| Let's Talk About Bitty & Beau's Coffee |
When you click the button above, you'll be taken to a page where you can book a quick 15-minute call with one of our franchise consultants. No pitch, no pressure — just a real conversation about whether this concept lines up with your goals, your budget, and your timeline. |
|
📰 Franchise Headlines Worth Reading |
Jack in the Box Faces High-Stakes Board Battle With Activist Investor Activist investor Sardar Biglari is pushing to oust Jack in the Box's board chair after a streak of same-store sales declines exceeding 6.5% and stock down 80% over five years. Two major proxy advisory firms have sided with Biglari. With a new CEO barely in the seat and a "Jack on Track" turnaround plan underway, a prolonged boardroom fight could sap the resources the brand needs most right now. Read more → Restaurant Dive |
|
Wingstop Posts First Same-Store Sales Decline in 22 Years Domestic comps fell 3.3% for the full year and 5.8% in Q4, ending a two-decade streak. But leadership is betting big on an AI-powered Smart Kitchen system (now in all 2,529 U.S. locations), a loyalty program rolling out nationally in Q2, and a push toward $3M AUVs and 10,000 units globally. Company-owned stores using the new system are already comping positive. Read more → Franchise Times |
|
NRA Projects $1.55 Trillion in Restaurant Sales for 2026 The National Restaurant Association's State of the Industry report forecasts a 4.8% jump in sales, though real growth after inflation lands at just 1.3%. The kicker: 42% of operators said they weren't profitable in 2025, and food costs sit 35% above pre-pandemic levels. Over a quarter of franchise businesses in the U.S. are restaurants — making this a barometer for the entire franchise economy. Read more → Franchise Times |
|
© 2025 Franzy. All rights reserved. You're receiving this because you subscribed to the Franzy newsletter. |
