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Coffee City

Melissa Allison follows the world's biggest coffee-shop chain and other Seattle caffeine purveyors.

June 29, 2010 at 7:33 AM

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Tully's looking for mom 'n' pop franchisees, giving away coffee on Friday

Posted by Melissa Allison

Tully's Coffee is drumming up interest in its franchise program, saying it will allow franchisees to open just one location to expand its footprint and, it hopes, attract people in western Washington who want a single shop.

Currently, 25 of Tully's 185 stores is franchised; another 82 are licensed to grocery stores and other businesses.

Tully's first franchisees were Paul Pennington and Carl Pennington Jr., sons of the current CEO. They own seven stores in Idaho.

"It's a chance to get people who want to start businesses, maybe some people who've lost their jobs and are looking to start a small business," said the senior, CEO Pennington, who returned this week from a trip to Asia, where Tully's is expanding licensed stores in Singapore and South Korea.

Opening a Tully's franchises costs about $175,000 to $425,000, and franchisees pay 5 percent of their sales in royalties, plus 2 percent for marketing, to Seattle-based Tully's, he said.

On July 20, the company will hold a franchise expo at its headquarters south of downtown Seattle. CEO Pennington will be there, as will Tully's franchising team.

In celebration of Indepedence Day, Tully's will give away free drip coffee this Friday from 7 a.m. to 10 p.m.

It's also running a buy-one-get-one espresso drink special for the long weekend.

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