Ateaz franchise
2024 filing · June 18, 2024Shares sales figures
Ateaz at a glance
A cafe serving coffee, teas, pastries, acai bowls, smoothies and light food, with beer and wine. At the end of 2023 there were 1 Ateaz locations in the US, all company-owned.
The business
- Franchisor
- Ateaz Franchising, Inc
- The company that sells the franchises
- Franchising since
- 2024
- Franchisor based in
- Kew Gardens, New York
- Typical size
- 1,000–2,000 sq ft
What you pay
- Cost to open
- $608K–$1.08M
- Fee, build-out and opening working capital
- Franchise fee
- $35,000
- Paid once, when you sign
- Royalty
- 6%
- 6% of gross sales, paid weekly, plus up to 3% to the brand development fund (currently 2%) and 2% on local marketing
- Brand fund
- 2%
- 2% of gross sales, paid weekly; it can rise to 3%
- Renewal fee
- See terms
- 25% of the then current initial franchise fee
- Agreement length
- 10 years
- Territory
- Protected
- Protected territory
- Franchisor financing
- None offered
Where it is
- US locations, 2023
- 1
- Franchised and company-owned
- Franchised
- 0
- Company-owned
- 1
- Change in 3 years
- 0
- Franchised locations, 2021–2023
- States
- 1
- Most in New York
From Ateaz Franchising, Inc’s 2024 filing; SBA status from the SBA Franchise Directory, October 28, 2026.
Where it ranks
Ateaz among all franchises with the same figure.
| Figure | Ateaz | Among all franchises |
|---|---|---|
| Cost to open, midpointHalfway between the low and high estimate | $844,475 | Costs more than 80% of franchises |
| Franchise feePaid once, when you sign | $35,000 | Lower than 61% of franchises |
| RoyaltyShare of sales paid to the franchisor | 6% | Higher than 35% of brands with a set rate |
| US locationsFranchised and company-owned | 1 | Fewer than 88% of franchises |
How much a Ateaz franchise costs
Opening one Ateaz costs an estimated $607,825 to $1,081,125. That covers the franchise fee and everything else needed to open, through the first months of working capital.
The biggest costs are construction and leasehold improvements ($230,000 to $430,000) and furniture, fixtures and equipment ($150,000 to $250,000). Here is every line of the estimate as filed:
| What it pays for | Range | Low | High |
|---|---|---|---|
| Initial Franchise Fee | $35,000 | ||
| Construction and Leasehold Improvements | $230,000 | $430,000 | |
| Lease Deposits and Rent – Three Months | $9,000 | $65,000 | |
| Furniture, Fixtures and Equipment | $150,000 | $250,000 | |
| Signage | $15,000 | $25,000 | |
| Computer, Software | $8,000 | $10,000 | |
| Point of Sale System | $3,800 | $4,500 | |
| Grand Opening Marketing | $7,500 | ||
| Initial Inventory | $20,000 | $35,000 | |
| Utility Deposits | $1,875 | $3,125 | |
| Insurance Deposits – Three Months | $2,400 | $6,500 | |
| Travel for Initial Training | $5,000 | $8,000 | |
| Professional Fees | $23,000 | $40,000 | |
| General Licenses and Permits | $1,250 | $2,000 | |
| Liquor License/Beer and Wine License | $6,000 | $9,500 | |
| Additional Funds – Three Months | $90,000 | $150,000 | |
| Total | $607,825 | $1,081,125 | |
Source: Ateaz Franchising, Inc, 2024 filing, page 15
Ateaz franchise fee
The franchise fee is $35,000. You pay it when you sign the franchise agreement.
Source: Ateaz Franchising, Inc, 2024 filing, page 10
Royalty and ongoing fees
| Royalty | 6% of gross sales, paid weekly, plus up to 3% to the brand development fund (currently 2%) and 2% on local marketing. |
|---|---|
| Brand or marketing fund | 2% of gross sales, paid weekly; it can rise to 3%. |
| Technology | Up to $500 per month, currently not assessed |
| Renewal | 25% of the then current initial franchise fee |
| Additional Employee Initial Training | Our training fee. Currently $500 per person per day |
| Franchisee Directed Local Marketing | 2% of Gross Sales |
The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.
Source: Ateaz Franchising, Inc, 2024 filing, page 11
Other fees as filed, from pages 11–13. The filing lists every fee, including late fees and audit costs.
Sales and earnings
Shares figures Ateaz publishes sales or earnings figures for its locations. The full tables, with notes on which locations are counted, are in its filing.
Source: Ateaz Franchising, Inc, 2024 filing, page 48
- Estimate Estimated yearly sales per location
- $710K–$1.3M
Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.
How Ateaz compares
Of the 117 coffee franchises on this site, Ateaz is the 90th cheapest to open and the 93rd largest by number of locations.
| Figure | Ateaz | Typical coffee brand | Typical franchise |
|---|---|---|---|
| Cost to open, low end | $608K | $350K | $222K |
| Cost to open, high end | $1.08M | $741K | $477K |
| Franchise fee | $35K | $35K | $40K |
| Royalty | 6% | 6% | 6% |
| Brand fund | 2% | 1.5% | 2% |
| US locations | 1 | 8 | 21 |
| Shares earnings figures | Yes | 69 of 117 | 2,147 of 3,352 |
Typical is the median across the 117 brands in coffee franchises; typical franchise, across every brand here.
Locations opened and closed
| Year | Franchised | Company-owned | Opened | Closed |
|---|---|---|---|---|
| 2021 | 0 (0) | 2 | 0 | 0 |
| 2022 | 0 (0) | 1 | 0 | 0 |
| 2023 | 0 (0) | 1 | 0 | 0 |
Closed or left counts terminations, non-renewals, locations bought back by the franchisor and locations that stopped operating.
See which brands grew most in the fastest-growing franchises rankings.
More in the guides: coffee franchise costs and franchise failure rates.
Source: Ateaz Franchising, Inc, 2024 filing, page 52
Where Ateaz locations are
At the end of 2023, Ateaz had locations in 1 state. The most are in New York.
- New York1
| State | Franchised | Company-owned | Total |
|---|---|---|---|
| New York | 0 | 1 | 1 |
Source: Ateaz Franchising, Inc, 2024 filing, page 52
Who owns Ateaz?
Ateaz franchises are sold by Ateaz Franchising, Inc. Its filing names no parent company.
From Ateaz Franchising, Inc’s 2024 filing, page 8.
Lawsuits and bankruptcy
| Lawsuits and regulatory actions | None. The filing says no litigation has to be disclosed. |
|---|---|
| Bankruptcy | None. The filing says no bankruptcy has to be disclosed. |
Franchisors must disclose lawsuits and bankruptcies involving the company, its parents and affiliates, and its executives. Many cases are routine disputes with franchisees over fees or contracts; read the descriptions in the filing and ask current owners about anything that worries you.
Source: Ateaz Franchising, Inc, 2024 filing, litigation on page 10, bankruptcy on page 10
Ateaz filings
The figures on this page come from Ateaz Franchising, Inc’s 2024 filing, issued June 18, 2024, on record with the NASAA Electronic Filing Depository.
| Filing | Issued | Registry | On this page |
|---|---|---|---|
| 2024 filing | June 18, 2024 | NASAA depository | Costs, fees and locations, 2021–2023 |
Each link opens the filing as a PDF. See the newest filings across all brands.
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