illy
illycaffè S.p.A.
Company Information
800 Westchester Avenue, Suite S438 Rye Brook, NY 10573
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.
Not Available
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Franchise Rating
Franchimp Summary Rating
3/10
Investment Accessibility
3/10
Franchise System Development
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Distribution of illy Franchisee
Employee Contact Database
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Summary of Investment Costs
Upfront Franchise Fees
Minimum: $30,000 Maximum: $30,000
Upfront franchise fees are the one-time payments required to secure rights to operate under an established brand, typically ranging from $20,000 to $100,000+ depending on brand value.
These fees grant access to proprietary business systems, training programs, intellectual property rights, and often territorial exclusivity—essentially purchasing the blueprint for a proven business model.
While separate from ongoing royalties, investors should evaluate these fees against expected returns, comparing fee-to-earnings ratios across opportunities and assessing how effectively franchisors reinvest these funds into system improvements.
Total Investment Costs
Minimum: $1,188,300 Maximum: $5,306,160
Ongoing Fees
Ongoing franchise fees, typically structured as royalties ranging from 4-8% of gross sales, represent the continuous payments franchisees make to maintain brand affiliation and support services.
These recurring fees fund the franchisor's operational assistance, marketing initiatives, technology updates, and continued brand development—creating a partnership where the franchisor's revenue grows alongside the franchisee's success. In addition to royalties, franchisees often contribute to national advertising funds (usually 1-3% of sales) and may incur technology fees, supply chain markups, or renewal fees depending on the franchise agreement.
Investors should carefully analyze these ongoing costs within their financial projections, as they directly impact profit margins and cash flow throughout the entire franchise relationship.
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