Coffee Beanery

The Coffee Beanery, Ltd. is a Flushing, Michigan based chain of coffee shops operating in the United States, Asia, and U.S. Territories. It was founded in Dearborn, Michigan in 1976 by JoAnne and Julius Shaw.

The Coffee Beanery, Ltd.
TypeLimited liability company
Industry
  • Coffee Chain
  • Coffee Roaster
  • Franchisor
FoundedMarch 22, 1976 (1976-03-22)
FounderJoAnne and Julius Shaw
Headquarters3429 Pierson Pl. Flushing, MI 48433,
Flushing, Michigan[1]
,
United States
Number of locations
70+[2]
Key people
JoAnne Shaw, CEO
Laurie Shaw, COO
Britain Butcher
Bret O'Brien
ProductsCoffee and related products
BrandsCoffee Beanery
ServicesManufacturing, Franchising & Retail
Revenue~$14 million[3]
Number of employees
35
ParentShaw Coffee Company [4]
Websitecoffeebeanery.com

History

In 1976, JoAnne and Julius Shaw began selling specialty coffee to consumers in their first store at Fairlane Town Center[5] in Dearborn, Michigan.[1][6] As of February 2007, the company had 131 franchise locations in the United States and another 25 in other countries.[3]

Business model

The company makes most of its money selling franchises and equipment, not the product itself.[3] Most shops close within three years; since the company's founding, more than 100 franchises have failed.[7]

In 2006, the Maryland securities commissioner determined that the company had made "material misrepresentations" to prospective franchisees in violation of state law, and ordered it to release Maryland franchisees from their contracts without penalty. In 2008, the Illinois attorney general made a similar determination. The Maryland order also directed the company to "permanently cease and desist from offering and selling" franchises in Maryland.[3][8] In the judge's court order, he ruled “This case is buyers’ remorse” and the case was settled in 2013.[9]

See also

References
  1. Usealman, Kevin (September 23, 2010). "Locally owned Coffee Beanery started mass phenomenon". MiNBCnews.com. Archived from the original on 12 January 2013. Retrieved 19 April 2012.
  2. "Coffee Beanery Franchising". Coffee Beanery.
  3. Crane, Mary (February 16, 2007). "A Cautionary Tale For New Franchisees". Forbes. Retrieved December 4, 2010.
  4. "Company Overview of The Coffee Beanery LTD". businessweek.com. Bloomberg. Archived from the original on August 17, 2009. Retrieved 19 April 2012.
  5. Muller, Joann (November 30, 1988). "Coffee idea is perking into chain". Detroit Free Press. p. 6C. Retrieved 7 November 2017.
  6. International Directory of Company Histories, St James Press
  7. Mencimer, Stephanie (March 2009). "Franchise Fraud: Wake Up and Smell the Fine Print". Mother Jones. Retrieved December 4, 2010.
  8. Court Rules for Coffee Beanery Franchisees Archived 2011-12-31 at the Wayback Machine, bluemaumau.org. Retrieved 20 February 2013
  9. "Coffee Beanery Settles with Franchisees". Retrieved 21 October 2021.
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