We grant the right to operate an Italian-style coffee bars that specialize in serving espresso, cappuccino and coffee related products, light snack food, and other items under our name and marks (the “ILLY Locations”).
Company Background
ILLY is the world's leading premium coffee roaster. We are committed to providing consumers with authentic Italian-style espresso, cappuccino and coffee related products. ILLY has expanded its operations by licensing its name and marks for use in connection with the operation of Italian-style coffee bars that specialize in serving espresso, cappuccino and other items under our name and marks (the "ILLYLocations"). The company operates around 400 locations worldwide.
Franchise Opportunity
The coffee market is full of options, but there are only a few true experts. If you're looking for an easy way to bring your passion and expertise to the masses without having to build a business from scratch, ILLY might be right for you. We work with passionate entrepreneurs who have their own unique style when it comes to coffee and food pairings. Whether you want your own branded iced coffee or tea bar, or something more traditional like a cafe or restaurant we can help make that happen! As a franchisee of ILLY Coffee Company, LLC (dba "ILLY COFFEE COMPANY"), you will enjoy our brand name recognition as well as operational support through our training programs and marketing materials. You will also benefit from access to capital that allows us to provide financing for the purchase of equipment, leasehold improvements and real estate - all in exchange for royalties paid by each location based on
Corporate Structure
We do not directly operate any ILLY Locations. We began offering franchises for ILLY Locations within the United States as of September 2008. We have also offered franchises for ILLY Locations in Canada since March 2009. We do not engage in any business activity other than the franchising of ILLY Locations using the “ILLY” marks. We have never offered franchises in any other line of business.
Investment and Franchisee Fees
The total investment necessary to begin operation of an ILLY Location in a: (1) Facility; or (2) Separate Location is between $357,100 and $1,762,720 and between $382,100 and $1,742,720, respectively. This includes the $60,000 to $118,500 that must be paid to us or our affiliate. If you sign a Development Agreement authorizing you to develop a minimum of 3 ILLY Locations, the total investment for the development rights is between $1,188,300 to $5,306,160. This includes the $30,000 that must be paid to us or our affiliate.
Franchisee Attrition
10 /10
This franchise's rate of attrition in 2023
of 0.00%
was
Lower
than the 3% in the Retail Food industry. Generally speaking, a higher rate of attrition represents a less stable franchise system and a lower rate of attrition indicates a more successful system
What's Included in franchise attrition?
We define the franchisee attrition rate as the sum of terminations, re-acquisitions by
franchisor, non-renewals, and ceased operations, divided by the number of outlest at the start of the year.
It is a strong indicator of the strength of the underlying operating model
Franchise Disclosure Documents
FDD
Effective Date
Distribution of illy Franchisees
illy Franchise System Development in 2019
FAQ
How much investment do I need to start my own illy business?
Franchisees typically require at least
$447,900 to
$1,727,720 investment to get their
illy business started
What are the initial franchise fees for illy?
Franchisees typically need to pay at least
$35,000 in fees directly to
illy in order to earn the right to launch their business
How much money can I make with a illy franchise? What are
the average revenues for a typical illy business?
We haven’t done the math on how much revenue a typical
illy brings in each year. We estimate that other
franchisees in the Food & Beverage industry generate
$0 revenue, so we would expect
illy to generate a similar amount
How long do I need to commit to running a illy unit? What
is my contractual commitment?
illy franchisees are typically required to sign up to a
10 year contract initially. The renewal length
is 10 years. You can of course exit early but
don’t expect to get any refund!
Accessibility
6 /10
The Franchisor's investment costs ranges from
$62,500 to $244,405
which is
Much Lower
than the $433,675 to $989,553 average in the Retail Food industry
What determines the investment cost?
Item 7 of the Franchise Disclosure Document lays out the full list of initial investment costs, including the fee payable to the franchisor, security deposits, equipment, professional fees etc
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