How Does The Human Bean Franchise Work?

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Operating model in one sentence

A The Human Bean franchise operates a locally staffed, drive-through espresso outlet: the franchisee hires and supervises the team, orders restricted inputs, prepares the authorized menu, and runs the site, while the franchisor controls recipes, approved suppliers, technology, promotions, operating standards, inspections, and reporting access.

Data basis: Casey Hawkins, Inc. is the legal franchisor and has no parent company. The U.S. FDD was issued March 5, 2025 and amended February 18, 2026. This analysis uses Items 1, 6, 8, 11, 12, 15, 16, 19 and 20; the Franchise Agreement; and the Operations Manual table of contents in Exhibit D. Outlet data run through December 31, 2025. Official pages checked August 1, 2026 include the U.S. franchise site, operations support, and training support.

1 Offered outlet format Freestanding or attached, with at least one drive-through lane.

188 Outlets at year-end 2025 176 franchised and 12 affiliate-owned outlets.

1 mile Exclusive outlet radius Protection is narrower than customer or channel exclusivity.

6 Required tech providers Transaction, loyalty, gift card, integration, marketing, and menu systems.

7 days Required weekly operation Normally at least 6 a.m.-6 p.m., unless THB agrees otherwise.

Offering and demand

What does the outlet sell, and who buys it?

The offered business is a retail THB Outlet centered on made-to-order drinks and quick-service food for drive-through guests. The menu is not franchisee-designed: the Operations Manual defines required items, the franchisor may add or delete products, and no unapproved product or service may be sold.

Authorized offer

BeveragesEspresso and brewed coffee, tea, smoothies, frozen drinks, BRIGHT energy drinks, soda, lemonade, H2B drinks, and approved seasonal recipes. The official drink menu shows current categories and customization options.

Food and merchandiseApproved pastries, breakfast and lunch items, branded drinkware, and other merchandise. The official food page says product and delivery availability varies by location.

Customer and channel structure

Primary transactionA guest orders from the menu board, pays, and receives the prepared order through the drive-through. A freestanding or attached THB Outlet is permitted, but at least one drive-through lane is required.

Digital and repeat demandThe Human Bean Rewards App supports loyalty, offers, stored value, and payment. DoorDash, Uber Eats, and Grubhub are optional local providers, not required system-wide channels.

Sources: 2025 FDD, amended 2026, Items 1, 8 and 16, pp. 6-8, 18-21 and 37; Exhibit D table of contents, pp. 132-134; official product program; official Rewards App functions.

Unit workflow

How does work move through the outlet?

The operating cycle links demand to controlled recipes, approved inventory, transaction capture, fulfillment, replenishment, and reporting. Unit employees execute the order, the manager directs daily work, and franchisor systems standardize and inspect the process.

Demand enters the unit

Actor: Guest, franchisee, and optional delivery marketplace.
Action: The guest selects from the approved menu after seeing official promotions, digital menu boards, local listings, or Rewards App offers.
System or asset: Required marketing software, digital-menu content management, and official brand channels.
Output: A drive-through or participating delivery-channel order.

Order and payment are captured

Actor: Barista or order-taker.
Action: The employee enters the authorized item and customization, applies approved discounts, scans loyalty or gift-card credentials, and takes payment.
System or asset: Required POS, loyalty, gift-card, handheld, and QR-scanning systems.
Output: A recorded ticket routed for preparation.

The order is prepared

Actor: Baristas and other unit employees.
Action: Employees assemble drinks and approved food using Operations Manual recipes, sanitation procedures, portion standards, and equipment settings.
System or asset: THB-specified espresso, brewer, grinder, granita, smoothie, refrigeration and food-preparation equipment; approved ingredients and packaging.
Output: A completed, brand-standard order.

Fulfillment and handoff occur

Actor: Window employee or optional third-party courier.
Action: The team verifies the ticket, presents the order, accepts approved physical or digital coupons and gift cards, and resolves immediate service issues.
System or asset: Drive-through lane and window, Toast ticket data, Chowly integration where digital ordering is used.
Output: Guest receipt, completed sale, and loyalty transaction record.

Inventory is replenished

Actor: Manager or delegated unit employee.
Action: The unit monitors stock, orders coffee, food, cups, lids and operating supplies, receives deliveries, and pays suppliers within terms.
System or asset: Approved coffee, food, packaging, operating-supply, and authorized local sources.
Output: Available approved inventory and documented supplier purchases.

Results are reported and reviewed

Actor: Franchisee, manager, bookkeeper or accountant; franchisor reviewers.
Action: The franchisee submits a monthly profit-and-loss statement within 30 days, year-end statements within 30 days, preserves required records, and corrects inspection deficiencies.
System or asset: Transaction and delivery-platform data, prescribed reports, supplier invoices, bank records, and audit access.
Output: Operating records available for support, inspection and audit.

Sources: 2025 FDD, amended 2026, Items 8, 11 and 19, pp. 18-21, 24-29 and 43-47; Franchise Agreement Sections 7.4, 8.1-8.9, 9.1 and 11.1-11.4, pp. 79-88; official digital-menu integration description.

People and decision rights

Must the owner work in the outlet, and who performs each function?

Personal counter or barista work is not contractually required, so a manager-run structure is permitted. The FDD does not describe absentee operation: the outlet must remain under the franchisee's direct supervision or a trained, locally resident General Manager with primary authority and constant personal attention to daily operations.

Owner participation

The FDD says the franchisee or manager should expect full-time work in administration, bill paying, staffing, scheduling, errands, and supply pickup or delivery. The franchisor discloses no ongoing headcount or staffing ratio, so the opening-training estimate is not an operating requirement.

Franchisee and General Manager

Hire, schedule, supervise, pay and train unit employees.

Maintain permits, food safety, premises, equipment and required operating hours.

Set pre-discount retail prices and manage local cash, inventory and records.

Submit required reports and remedy operating deficiencies.

Franchisor

Defines menu, recipes, equipment, supplier, design and manual standards.

Provides managerial training, support responses, periodic visits and campaign materials.

Controls Brand Fund spending after considering the Franchisee Advisory Committee.

Inspects outlets, removes samples, accesses system data and audits records.

Required and optional third parties

Approved distributors provide coffee, food, packaging, cleaning and operating inputs.

Required transaction, loyalty, integration, marketing, and digital-menu providers support the technology stack.

Delivery, payroll, scheduling, hiring, and cleaning providers listed as optional remain local choices.

Local professionals handle accounting, installation and compliance when retained.

Sources: 2025 FDD, amended 2026, Items 8, 11, 15 and 19, pp. 18-21, 24-29, 36 and 43-47; Agreement Sections 9.1, 10.5 and 11.1-11.5, pp. 83-88.

Supply chain and technology

Which suppliers and systems are mandatory?

The supply chain is a central control mechanism, not a recommendation. Required goods available through the THB supply chain must be purchased from approved sources; the franchisee may propose a local supplier only when needed, and the franchisor retains sole discretion to approve or deny the request.

Coffee and proprietary drinks

Centerline Coffee Roasting, LLC is the main roasted-coffee supplier; Portland Coffee Holdings, LLC is a secondary authorized supplier. Bright Energy Drink, LLC is the affiliate and sole supplier of BRIGHT-branded canned and blended energy products. Unapproved coffee or espresso cannot be served.

Food and operating supplies

Sysco Corp. and Odeko supply specified food, mixes, packaging, paper goods, and cleaning supplies; Seattle's Favorite supplies pastries. The franchisor is the only approved supplier of required beverage and food-preparation equipment. Certain refrigeration and ice equipment may come from any source meeting specifications.

Transaction systems

Toast is the required POS with managed network and data-security requirements. The Enterprise Golden Image standardizes menu configuration. Incentivio supports the mobile application and loyalty program, Valutec supports gift cards, and Chowly connects POS and digital ordering.

Marketing, menus and Brand Fund

SOCI is required marketing software; Creative Realities manages digital menu-board content. Each outlet contributes a 1% Brand Fee on Adjusted Gross Sales Revenues by monthly EFT. The franchisor controls Brand Fund spending after considering the Franchisee Advisory Committee and may access POS data, require capped upgrades, and revise specifications.

Supplier dependency

The system does not charge a royalty fee; the FDD states that the franchisor primarily earns operating revenue through required supply-chain sales. That makes purchasing compliance, vendor payment status and accurate purchase records direct parts of franchise compliance, not merely procurement choices.

Sources: 2025 FDD, amended 2026, Items 6 and 8, pp. 12-13 and 18-21; Agreement Sections 7.4 and 8.1-8.5, pp. 79-81; official supply-chain support description.

Territory, marketing and controls

What does the franchisor control, and what remains local?

The franchisee controls employment, daily supervision, local execution and pre-discount pricing, but operates inside a tightly specified outlet, menu, supplier, technology, promotion and reporting system. Territory protection prevents another competing THB outlet inside the defined radius; it does not assign customers, leads or independent online channels to the franchisee.

Controls reserved to the franchisor

Outlet and product standardsSite approval, building and equipment specifications, menu authorization, recipes, required suppliers, signage, menu boards, required operating hours and continuous-operation rules.

Marketing and communicationsRequired system-wide promotions and charitable campaigns; THB Brand Fund control; official website and social channels; and prior approval of local advertising submitted at least 30 days before use, with a response due within 15 days.

Quality and dataPeriodic inspections, product sampling, transaction-system and third-party-platform access, financial reports, preserved supplier invoices, and audits of sales and purchases.

Operating choices retained locally

PeopleSelect the owner-supervised or manager-run structure; hire, schedule, discipline and compensate employees; retain accounting, payroll and local professional services.

Pricing and local promotionSet pre-discount prices and fund local advertising subject to advance approval. Ongoing local advertising after the opening period is recommended, not contractually fixed.

Approved alternativesChoose an insurance carrier that meets criteria, propose a local supplier, and select optional delivery, scheduling, hiring, payroll or cleaning providers. These choices remain subject to the applicable specification or approval process.

Territory limit

The standard exclusive territory is a one-mile radius. Another franchisee or the franchisor may advertise to, solicit, or accept orders from people inside that radius, and the franchisor may sell branded merchandise online there. The franchisee may attract customers from outside the radius, but cannot create independent internet, catalog, telemarketing or direct-marketing sales channels.

Sources: 2025 FDD, amended 2026, Items 8, 11 and 12, pp. 18-21 and 24-31; Agreement Sections 8.6-8.9 and 11.1-11.4, pp. 81-88.

System footprint

What does the outlet population show about the operating system?

The three-year table shows a predominantly franchise-operated system and a fixed affiliate-owned population. Franchised outlets increased from 146 at the end of 2023 to 176 at the end of 2025; affiliate-owned outlets remained at 12.

U.S. outlet composition at December 31, 2025

Item 20 total: 188 outlets

Franchised outlets 176 · 93.6%

Affiliate-owned outlets 12 · 6.4%

Interpretation: Franchisees operate most outlets, while the stable affiliate-owned group gives the system direct operating exposure. The amended FDD separately reports 190 total outlets as of February 12, 2026.

Source: 2025 FDD, amended February 18, 2026, Item 20, Tables 1 and 4, pp. 48 and 52-53. Percentages are 176/188 and 12/188 and reconcile to 100.0% after rounding.

Buyer verification

Which operating questions remain material?

The FDD defines control rights but not every local workload variable. These outlet-specific points require verification rather than generic drive-through assumptions, especially where site layout, traffic, vendor routing, and labor availability affect daily execution.

Manager model: Who will hold day-to-day authority, and how will full-time administration, staffing, scheduling, and supply errands be covered?

Delivery choice: Which optional marketplaces operate locally, and how do ordering integration, menu availability, and staffing interact during peaks?

Supplier route: Which approved distributor serves the site, which perishables need local approval, and what delivery windows apply?

Technology scope: Which transaction configuration, handhelds, menu screens, network services, and security obligations fit the building and lane layout?

Territory reality: Which nearby brand outlets, reserved channels, development rights, and traffic patterns affect demand beyond the protected radius?

Operating-model synthesis

The central mechanism is repeated sale of authorized beverages, food, merchandise, and stored-value transactions through a drive-through outlet, supported by loyalty and optional delivery. The franchisee's primary responsibility is disciplined daily execution through a qualified manager and local team.

The strongest dependency is the franchisor's control over the Operations Manual, required suppliers, menu, transaction configuration, marketing channels, inspections and data access. The key distinction is that Area Development rights govern multi-unit development, not a different outlet format; each current offered outlet still requires a drive-through lane. The largest undisclosed question is the site-specific staffing and workload needed to meet service, operating-hour and reporting standards.