Aroma Joe’s Franchise Cost, Profit & Failure Rate 2024

Would you like to have a successful cafè without having to invest too much and without having to learn anything about coffee?

Even if it sounds impossible, it is possible if you join the Aroma Joe’s franchise program.

Aroma Joe’s is currently open to franchise partners and it could be a great opportunity for you: the brand is growing quickly, and it offers a lot of different products that can attract a lot of clients every day and at every hour of the day because they don’t sell exclusively coffee but also other products. 

In this article, you’ll find out anything you need to know about the Aroma Joe’s Franchise.

Aroma Joe’s Franchise
Aroma Joe’s Franchise

About Aroma Joe’s

Aroma Joe’s is a company that makes its own coffee and also runs cafés. Their main priority is the quality of their blend: they focus on sustainability, and they only select Aroma beans.

Their coffee beans grow in Maine, and they are roasted in 100% Rainforest Alliance Certified coffee roasters.

They not only pay attention to the quality but also to the ethic: in 2018, Aroma Joe’s started a program that ensures that their coffee is ethically sourced.


History Of Aroma Joe’s 

Aroma Joe’s was founded in 2000 in Maine. The first retailer was opened by Marty and Tim McKenna and Mike and Brian Sillon.

They are four cousins. By watching the competition, they found a hole in the niche: the main coffee bar franchises paid little attention to quality, whether it was the quality of the coffee they served or the quality of the services they provided to the community.

They focused their activity on these elements: quality coffee beans roasted in premium quality locations and on providing positive energy to every customer that enters their cafès.

Based on these two principles, the first Aroma Joe’s quickly became a point of reference in the community, and the four cousins were ready to grow.

Franchising isn’t only a great opportunity for external partners but also for the companies that decide to pen to it because they allow them to grow extremely quickly.

In 2021, Arom aJoe’s became a franchise, and now anyone interested can open an Aroma Joe’s franchise retailer.

Begin by submitting your candidacy on their website; they’ll reach out to you with more information.


Aroma Joe’s Business Model

Aroma Joe’s has been a franchise since 2012. It is currently open to new franchise partners: if you want to join them, submit your candidacy on their website.

Cost Or FeeAmount
Initial Investment$50,000 (estimated) + franchise fee.
FranchiseYES
Franchise FeeNon-specified
Number of outlets70 + in USA

How Much Does It Cost To Open An Aroma Joe’s?

How Much Does It Cost To Open An Aroma Joe’s

Unfortunately, Aroma Joe’s does not specify their franchise fee on their website. They only communicate it to candidates that are selected to become franchise partners.

However, if you decide to open an Aroma Joe’s, you’ll need to invest in the cafè and inventory. These and the franchise fee will be your main expenses.

Whether you buy or rent your location, you won’t need a big place. Aroma Joe’s can also be very little. Inventory isn’t a huge expense because Aroma Joe’s provides you with anything you need.

We can therefore estimate an initial investment of $50,000 or more. You’ll need to add the franchise fee to this count.


Requirements

Aroma Joe’s doesn’t require their partners to have a huge experience in the sector.

They are more focused on partnering with passionate people who understand Aroma Joe’s value of quality and positivity.

There will certainly be requirements about the cafè you are going to open: specific dimensions, colors, furniture, and number of employees will be required, and you’ll get to know them once you are selected as a franchise partner because, at the moment, Aroma Joe’s isn’t sharing these details.


Aroma Joe’s Franchise Revenue And Profit

The revenue of Aroma Joe’s franchise could vary from one franchise location to another.

However, based on the median revenue of 73 Aroma Joe’s coffee shops in the year 2021, we can say that, on average, Aroma Joe’s franchise generates revenue of $854,947 per year. 

Additionally, with an estimated profit margin of 25%, Aroma Joe’s franchise owner makes $213,736 in profits per year on average.

Since Aroma Joe’s has not provided any information regarding its finances, we calculated the profit amount based on the industry average:

Financial OverviewPercentage of RevenueAmount ($)
Individual Franchise Annual Revenue100%854947.00
Rent9.38%(80151.28)
Insurance4.69%(40075.64)
Salaries18.75%(160302.56)
Franchise Royalty Fees4.69%(40075.64)
Utilities1.88%(16030.26)
Cost of Goods Sold (COGS)23.44%(200378.20)
Labor (Variable)12.19%(104196.67)
Total (Expenses)75.00%(641210.25)
Net Profit25.00%213736.75

Note: The displayed expenses are estimates based on industry averages and standard costs. Actual expenses may vary due to factors like location, business size, and market conditions. We recommend conducting detailed research or consulting with a financial advisor for a tailored financial analysis.


Payback Period Of Aroma Joe’s

The midpoint investment of Aroma Joe’s is $665,000, and the yearly profit is $213,736. So, to find out how long it will take to earn back the initial investment:

Payback Period = Midpoint Investment / Yearly Profit = $665,000 / $213,736= 3.11 years

Based on these figures, it will take approximately 3-4 years to pay back the initial investment for Aroma Joe’s franchise. This time period could be longer or shorter depending on your sales, revenue, and profit figures.


Failure Rate Of Aroma Joe’s

Franchised Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20196166+5
20206671+5
20217181+10

For the Franchised outlets:

  • In 2019, the growth rate was (5)/61×100≈8.19%
  • In 2020, the growth rate was (5)/66×100≈7.57%
  • In 2021, the growth rate was (10)/71×100≈14.08%

Company-Owned Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
2019110
202012+1
202121-1 

For the Company-Owned outlets:

  • In 2019, the failure rate was (0)/1×100≈0.00%
  • In 2020, the growth rate was (1)/1×100≈0.00%
  • In 2021, the failure rate was (1)/2×100≈50%

Total Outlets:

YearOutlets at the Start of the YearOutlets at the End of the YearNet Change
20196267+5
20206773+6
20217382+9

For Total outlets:

  • In 2019, the growth rate was (5)/62×100≈8.06%
  • In 2020, the growth rate was (6)/67×100≈8.95%
  • In 2021, the growth rate was (9)/73×100≈12.32%

According to the above-mentioned data, there is no failure rate for franchised outlets as the outlets at the end of the year increased during the span of 3 years.

We can see that the franchised outlets for Aroma Joe’s grew from 2019 to 2021, showing a growth rate between 8.19% and 14.08%. On the other hand, for company-owned outlets, the failure rate of Aroma Joe’s was quite high, lying in the range between 0.00% and 50% for 2019 and 2021.

Overall, when we combine the data of franchise and company-owned outlets, we can see that the Aroma Joe’s franchise has expanded in the years 2019-2021 showing a total growth rate between 8.06% and 12.32%.


Training and Support

Because they want each Aroma Joe’s to be at the same quality level, the company provides tons of support for partners.

Training is about coffee, barista skills, management skills, and marketing.


Obligations & Restrictions

Aroma Joe’s Obligations & Restrictions

Becoming a franchise partner means that you are the owner of your cafè, but you still have restrictions and obligations that are dictated by the main company.

For example, if you open an Aroma Joe’s, you can’t serve other blends of coffee different from the Aroma Joe’s proprietary one, you can’t serve poor quality coffee, you can’t serve in cups that are not authorized by the company, and so on.

All these obligations are communicated when you are selected as a franchise partner and are taught during the training.


Terms Of Agreement & Renewal

Because we don’t know how much is the franchise fee and what’s the policy, we don’t know if the fee is a single payment or if you need to pay every year, or if you can negotiate a different type of contract.

When you become a franchise partner, make sure to understand what you’re paying for. If opening a coffee franchise appeals to you, consider  Dutch BrosScooter’s CoffeeDunkin’ DonutsBlue Bottle Coffee, and Biggby Coffee. as viable options.


Aroma Joe’s VS Blue Bottle Coffee

CompanyAroma Joe’sBlue Bottle Coffee
Founded20002002
Number of locations70 +100 +
FranchiseYESNo
Franchise FeeUnknownNone

Conclusion

Aroma Joe’s is a great opportunity for anyone interested in opening a cafè.

With them, you don’t need to start from scratch: you can count on their quality coffee blend, you can receive training and directions, and you can count on a brand that is already known.


Aroma Joe’s Franchise: FAQ

Is Aroma Joe’s a franchise or chain?

Aroma Joe’s is a franchise, and it’s currently open to submissions.

Who is the owner of the Aroma Joe’s Company?

Marty and Tim McKenna and Mike and Brian Sillon, who founded the company, are still its owners.

How many Aroma Joe’s cafès are there?

Currently, there are more than 70 Aroma Joe’s cafès spread across the United States.

Is the Aroma Joe’s Franchise a good investment?

It is a good investment because the initial investment is not huge, and you can create a stable income very quickly.

Is the Aroma Joe’s Franchise worth it?

Investing in the Aroma Joe’s franchise is worth it because you can become the owner of your cafes.

You can serve tons of products at every hour of the day. Being able to count on the quality of the Aroma Joe’s blend, your clients will be numerous from day one.

Where is Aroma Joe's headquarter?

The headquarters of Aroma Joe’s is located in 352 Warren Ave, Portland, ME 04103.

Reference: Handcrafted Coffee, Espresso & Energy Drink Company (aromajoes.com)

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