Matto Espresso franchise

2022 filing · March 30, 2022Growing

Matto Espresso at a glance

An Italian-style espresso bar serving coffee drinks, fresh baked goods and retail items at low prices. At the end of 2021 there were 14 Matto Espresso locations in the US, all franchised.

The business

Industry: Coffee; Also listed in food
Franchisor: Matto Franchise LLC; The company that sells the franchises
Who runs it: Semi-absentee; Owner doesn't have to take part; a trained manager runs it
Franchising since: 2019; 3 years of selling franchises
Franchisor based in: New York, New York

What you pay

Cost to open: $228K–$453K; Fee, build-out and opening working capital
Franchise fee: $36,000; Paid once, when you sign
Royalty: 6%; 5% of gross revenue for the first three months, then 6%, paid weekly
Brand fund: 2%; 2% of gross revenue, paid weekly; it can rise to 3%
Agreement length: 10 years
Franchisor financing: Introductions to lenders
SBA Franchise Directory: Not listed; Lenders check this list before an SBA loan

Where it is

US locations, 2021: 14; Franchised and company-owned
Franchised: 14
Company-owned: 0
Change in 2 years: +14; Franchised locations, 2019–2021
States: 1; Most in New York

Support and records

Shares sales figures: No; Ask current owners what a location makes
Initial training: 35 hours; 16 hours in class and 19 on the job
Lawsuits disclosed: None
Bankruptcy disclosed: None
Latest filing: Mar 30, 2022; 2022 filing

From Matto Franchise LLC’s 2022 filing; SBA status from the SBA Franchise Directory, October 28, 2026.

Estimate your costs Model the payback

Where it ranks

Matto Espresso among all franchises with the same figure.

Figure	Matto Espresso	Among all franchises
Cost to open, midpointHalfway between the low and high estimate	$340,575	Costs less than 52% of franchises
Franchise feePaid once, when you sign	$36,000	Lower than 60% of franchises
RoyaltyShare of sales paid to the franchisor	6%	Higher than 35% of brands with a set rate
US locationsFranchised and company-owned	14	Fewer than 56% of franchises

How much a Matto Espresso franchise costs

Opening one Matto Espresso costs an estimated $227,850 to $453,300. That covers the franchise fee and everything else needed to open, through the first months of working capital.

Source: Matto Franchise LLC, 2022 filing, page 16

Matto Espresso franchise fee

The franchise fee is $36,000. You pay it when you sign the franchise agreement.

Source: Matto Franchise LLC, 2022 filing, page 8

Royalty and ongoing fees

Royalty	5% of gross revenue for the first three months, then 6%, paid weekly.
Brand or marketing fund	2% of gross revenue, paid weekly; it can rise to 3%.
Technology Fee	Currently $150 per month
Additional Training at Franchisor’s Location	Currently $250 per person per day plus expenses incurred.
Grand Opening Marketing/Local Advertising and Marketing	$5,000-$7,000 One Percent (1%) of Gross Revenue.

The typical franchise royalty is 6% of sales, plus 2% for marketing. See franchise fees and royalties to compare.

Source: Matto Franchise LLC, 2022 filing, pages 8 and 9

Other fees as filed, from pages 9–11. The filing lists every fee, including late fees and audit costs.

Sales and earnings

No figures Matto Espresso does not share sales or profit figures for its locations. Talking to current and former franchise owners is the usual way to learn what a location earns.

Source: Matto Franchise LLC, 2022 filing, page 44

Estimate Estimated yearly sales per location: $390K–$680K

Estimated from the sales that 292 comparable franchises file, matched on industry, format, cost to open, fees and size.

How Matto Espresso compares

Of the 117 coffee franchises on this site, Matto Espresso is the 25th cheapest to open and the 45th largest by number of locations.

Figure	Matto Espresso	Typical coffee brand	Typical franchise
Cost to open, low end	$228K	$350K	$222K
Cost to open, high end	$453K	$741K	$477K
Franchise fee	$36K	$35K	$40K
Royalty	6%	6%	6%
Brand fund	2%	1.5%	2%
US locations	14	8	21
Closed or left per year	0%	2.6%	–
Shares earnings figures	No	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

8 opened

0 closed or left

Franchised locations, last 2 years

2019

6 opened0 closed or left

6 (+6)

2020

2 opened0 closed or left

8 (+2)

2021

14 (+6)

Year	Franchised	Company-owned	Opened	Closed
2019	6 (+6)	8	+6	0
2020	8 (+2)	0	+2	0
2021	14 (+6)	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: Matto Franchise LLC, 2022 filing, pages 44–45

Source filing (2022, PDF)

Where Matto Espresso locations are

At the end of 2021, Matto Espresso had franchised locations in 1 state. The most are in New York.

New York14

State	Franchised
New York	14

Source: Matto Franchise LLC, 2022 filing, page 45

Who owns Matto Espresso?

Matto Espresso franchises are sold by Matto Franchise LLC. Its filing names no parent company.

From Matto Franchise LLC’s 2022 filing, page 6.

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: Matto Franchise LLC, 2022 filing, litigation on page 8, bankruptcy on page 8

Source filing (2022, PDF)