Mobile Coffee Truck Franchise Cost Calculator

Enter the numbers from your franchise disclosure document and your truck and equipment quotes, and the calculator adds them into one total startup cost, plus the monthly royalty from your expected sales.

1. Enter the franchise fee from the franchisor. Typical fees run $15,000 to $50,000.
2. Enter the truck cost, which is usually the largest item. A used truck built out for coffee service often costs $40,000 to $120,000.
3. Enter the equipment cost for the espresso machine, grinders, refrigeration and generator.
4. Enter the initial inventory, licences and permits, and working capital.
5. Enter your expected monthly sales and the royalty rate from the franchise agreement. Enter 0 for the royalty rate if the franchise charges a fixed yearly fee instead of a percentage.
6. Press Calculate or press Enter. The total startup cost appears first and large, with the itemised breakdown and the monthly royalty below.

The total startup cost is a simple sum of the six one-time costs, and the result is the cash you need before opening. The royalty is separate, because it is charged on sales, not paid once.

Total startup cost = franchise fee + truck cost + equipment cost + initial inventory + licences and permits + working capital. Monthly royalty = monthly sales x royalty rate / 100. Annual royalty = monthly royalty x 12. The franchise fee is the one-time payment for the right to use the brand. The truck cost covers the vehicle and its coffee fit-out. Working capital is the cash you keep back for the first months of running costs. If your franchise charges a fixed yearly royalty instead of a percentage, enter 0 for the royalty rate and add the fixed fee to your own monthly budget. Our business loan calculator can price a loan if you plan to borrow part of the startup cost.

A buyer looks at a mobile coffee truck franchise with a $25,000 franchise fee, a $65,000 truck, $18,000 of equipment, $3,000 of initial inventory, $1,500 of licences and permits and $10,000 of working capital. Expected monthly sales are $20,000 and the royalty rate is 6%.

1. Franchise fee: $25,000.
2. Truck cost: $65,000. Running total: $25,000 + $65,000 = $90,000.
3. Equipment: $18,000. Running total: $90,000 + $18,000 = $108,000.
4. Initial inventory: $3,000. Running total: $108,000 + $3,000 = $111,000.
5. Licences and permits: $1,500. Running total: $111,000 + $1,500 = $112,500.
6. Working capital: $10,000. Total startup cost: $112,500 + $10,000 = $122,500.
7. Monthly royalty: $20,000 x 6 / 100 = $1,200.
8. Annual royalty: $1,200 x 12 = $14,400.

As a second check, take a $15,000 franchise fee, a $60,000 truck, $15,000 of equipment, $2,000 of inventory, $1,000 of licences and $8,000 of working capital. The total is $101,000, and sales of $15,000 at a 5% royalty give a monthly royalty of $750. The same steps work for any franchise, so try your own numbers in the tool above.

The truck is the largest cost in the worked example at $65,000, which is 53.1% of the $122,500 total. The franchise fee is next at $25,000, or 20.4%, and equipment is $18,000, or 14.7%. The other three items together are only $14,500, or 11.8% of the total. That is why the truck choice matters most. A new custom truck can cost $171,950, as Travelin Tom's charges, while a small branded trailer such as the Bitty and Beau's Mini Cruiser costs $29,000.

The royalty rate changes the monthly cost, not the startup total. On $20,000 of monthly sales, a 4% royalty is $800 a month, a 6% royalty is $1,200 a month and an 8% royalty is $1,600 a month. Over a year that is $9,600, $14,400 and $19,200. A fixed royalty works differently. Travelin Tom's charges $3,000 a year in years 1 to 2, which is $250 a month whatever you sell. Our break-even calculator can show how many cups you need to sell to cover the royalty and your other monthly costs.

Starting on your own is cheaper up front. An independent coffee truck costs $30,000 to $120,000 to start, with no franchise fee and no royalty. A franchise typically costs $90,000 to $250,000 in total, and you pay royalty on every sale after that. In the worked example the franchise fee alone is $25,000, which is money an independent operator never spends.

A franchise gives you something for that money. You get a known brand, a proven menu, training, supplier deals and help finding pitches and events. An independent truck keeps every dollar of sales, but you build the brand, the menu and the customer base yourself. The cheapest franchise entry in our research is the Bitty and Beau's Mini Cruiser at $68,250 to $83,450 all in, which sits inside the independent range. Our coffee shop menu pricing calculator and our food truck menu pricing calculator can help you set drink prices that cover the royalty either way.

Ask for the franchise disclosure document, known as the FDD, and read Item 7, which lists the estimated initial investment line by line. Compare each line with the quotes you hold for the truck, the equipment and the licences, and check whether the truck and the equipment are included in the franchisor's price or bought separately. Read Item 5 and Item 6 too, because they list the fees you pay to the franchisor and the ongoing fees, including royalty, marketing fund and renewal fees.

Check whether the royalty is a percentage of gross sales or a fixed yearly fee, and ask exactly what counts as gross sales. Ask what training, territory and support are included, and what happens if you want to sell the truck or leave the system. Talk to at least two current franchisees about real sales and real costs before you sign. Our laundromat startup cost calculator uses the same add-up method for a different small business.