CosMc’s Franchise Cost, Fees & Requirements 2024

Today’s big brands generally create spin-offs to offer new things in their lineup, attract new customers, and provide a new structure. CosMc’s is one of those spin-off brands coming from McDonald’s. It is a coffee drive-through that aims to target the sweet tooth people looking to get a quick drink and maybe breakfast.

It is a brand new concept, and since it’s backed by McDonald’s, you might already be thinking of owning a CosMc’s franchise, but is it possible? In this article, we will dive into CosMc’s history, whether they offer franchising, and what you can expect.


About CosMc’s And CosMc’s History

CosMc’s is essentially the name for the McDonaldland character, which is one of the mascots of the McDonald’s brand. McDonald’s wanted to create a spin-off based on this name and use their mascot’s name.

They also used similar names from their mascots in the late 1990s, but it ultimately failed. CosMc’s is their latest spin-off to create a separate brand.

CosMc’s was founded in July 2023 and opened its first and only store on December 7, 2023. It aims to be a coffee drive-through shop, and understandably, they are not offering franchising since they are brand new.

They offer a total of 10 drinks that are not available in McDonald’s restaurants. They also offer some items that are available in McDonald’s restaurants, like the Egg McMuffin. The company aims to open 9 more stores in Texas in 2024 to see if the brand will survive.


Franchise Model Table

CostAmount
FranchiseNO
Franchise-FeeNO
Estimated Outlets1

How Much Does It Cost to Open A CosMc’s Franchise?

CosMc’s is not a franchise at the moment. Therefore, there are no costs associated with opening a CosMc’s franchise. The company might start to franchise like its main company, McDonald’s, and in that case, they will share a cost estimation in their franchise documents.

They haven’t communicated anything about when or if they would offer franchising.


Why Doesn’t CosMc’s Offer Franchising?

The spin-off brand from McDonald’s was only announced in July 2023, and its first store opened on 7 December 2023. According to the announcements by the McDonald’s CEO, they are trying to figure out if the brand will be successful or not.

That’s why they haven’t made any comments about franchising because this spin-off brand’s future is unclear, and whether it will stay in the coming years or not.


Profit & Revenue Of CosMc’s

CosMc’s only started its operations on 7 December 2023 with one store, and they plan to open nine more in Texas in the next year, in 2024. There isn’t enough information about CosMc’s profit and revenue structure as a company or as the one store that is open now.


What Are Some Alternatives To CosMc’s?

CosMc’s might not be offering franchising, but similar drive-through coffee shops offer franchising. You can consider one of those alternatives to own a franchise.

1. The Coffee Bean & Tea Leaf

What Are Some Alternatives To CosMc’s-The Coffee Bean & Tea Leaf

The Coffee Bean & Tea Leaf originally did business as a coffee shop, and it is an American coffee shop chain operating since 1963. They originally started as a coffee service for offices but later turned into an actual coffee shop chain. It has over 1,000 locations, and most of them are franchised. They are currently offering franchising.

The total average expected cost to open one Coffee Bean & Tea Leaf store is around $192,250 and $785,500 in the United States.

This includes the franchise fee of between $15,000 and $25,000. The royalty fee is 5.5% of gross sales each month. The costs and fees might vary depending on the country.

2. Biggby Coffee

What Are Some Alternatives To CosMc’s-Biggby Coffee

Biggby Coffee is another American coffee house franchise with over 300 locations, most of which are franchised. They were founded in 1995 and started to franchise in 1998 after the first three locations had great success.

They have been giving out franchising ever since to those interested in their specialty in made-to-order beverages like coffee, smoothies, and assorted foods.

For one Biggby Coffee Franchise store, the expected average investment is between $246,305 and $564,626, including everything like the $20,000 franchise fee and other startup costs. You also need to pay a 6% royalty fee from gross sales each month.

3. Scooter’s Coffee

Scooter’s Coffee

First started as Scooter’s Java Express and then turned to Scooter’s Coffee; this brand is a drive-thru coffee shop that focuses on high-quality coffee, fast service, and simple operation structure.

They were founded in 1998 and started to franchise in 2001 when they had only five stores but had a huge demand. They now have over 600 stores.

The cost to open one Scooter’s Franchise is around $797,000 and $1.3 million. The franchise fee is $40,000, which is included in the expected average cost. There is also a 6% royalty fee that you must pay to the brand.

Entrepreneurs considering a venture into the coffee franchise sector might explore options such as Aroma Joe’s, Starbucks, Dunkin’ Donuts, and Blue Bottle franchises.


Comparison

NameFranchise FeeRoyalty FeeInitial Investment
Krispy Kreme Doughnuts$12.500-$25,0004.5%$275,000-$1.9 million
Dutch Bros Coffee$30,0004%$350,000-$450,000
CosMc’sNONONO

Conclusion

CosMc’s is a spin-off from McDonald’s that opened on 7 December 2023. It is a brand-new brand that McDonald’s is trying to see if it will be successful. They are aiming to open nine more stores in 2024 in Texas. The company offers 10 drinks that are not on McDonald’s menu and some similar tastes like Egg McMuffin that they already offer.

They do not offer franchising currently, and there are no official plans to do so. However, you may go for similar alternatives, like Dutch Bros or Scooter’s Coffee, that offer franchising.


FAQs

Is CosMc’s a franchise?

As of December 2023, CosMc’s is not a franchise. It’s not clear whether they will offer franchising in the future because the company is brand new.

How much does it cost to open a CosMc’s franchise?

Since CosMc’s is not a franchise, there are also no costs associated with opening a CosMc’s franchise. If the company decides to franchise in the future, they will publish a franchise cost expectation in their franchise disclosure document.

Who owns CosMc’s?

McDonald’s owns CosMc’s. The brand is a spin-off from McDonald’s.

Sources

https://en.wikipedia.org/wiki/Biggby_Coffee

https://en.wikipedia.org/wiki/CosMc%27s

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