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Macchiato Cafes

Company Information

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We are in the business of selling franchises for a coffee, tea and dessert cafe operating under the name of “MACCHIATO” and related marks A Macchiato Cafe (“Cafe”) specializes in the preparation and sale of certain coffee, tea, other beverages and light food items and related products and services, located at locations approved by us, such as in strip shopping centers, shopping malls, and free-standing units We are a franchising company which promotes and sells franchises for the operation of Macchiato Cafes We have not offered franchises and have not conducted business in any other line of business

FDD Effective Date Action

Franchise Rating

Franchimp Summary Rating

4/10

Investment Accessibility

4/10

Franchise System Development

Year Units at Start of Year Units Opened Units Terminated Non-Renewals Re-Acquired by Franchisor Ceased Operations Units at End of Year

Employee Contact Database

# Name Position Email Phone

Summary of Investment Costs

Upfront Franchise Fees

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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

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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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