How BIG BREW Went From Everywhere to Nowhere.

Horror stories from Big Brew franchisors and what we can learn from it before we think about franchising again.

2 Years ago, literally almost every street in the Philippines has a Big Brew kiosk. The tarpaulins were bright. The lines were long.

For consumers: It’s affordable coffee, convenient, and tastes better than your typical nescafe 3-in-1 (argueably).

For Investors: Low franchise fee, high demand, and easy to set up.

The value proposition was perfect. A lot of Filipinos hopped in the bandwagon. Kiosks spawned everywhere.

For reasons to be discussed the kiosks just started disappearing.

Weeks later former franchisees began posting their stories..

HIDDEN FEES

On paper, the franchise fee was ₱30,000. That’s what was written in the contract. Easy to say yes, especially, for a first-time business owner who’s in a budget.

But that’s not what they paid.

Multiple franchisees confirmed they handed over ₱300,000 in checks to Big Brew management. Ten times what the contract stated. When asked why the contract only showed ₱30,000, they were told it was to avoid paying large taxes. No official receipt was issued. No paper trail that could hold up anywhere. Instead, everything ran through an “internal agreement”.

THE LOCATION TRAP

Finding a good location is 90% of the battle in any local food and beverage business. Franchisees knew this. So they did their homework, scouted their areas, and submitted their chosen spots for approval.

Then they got rejected.

Not because the location was bad. Because it was too good.

Former franchisees report that management would block prime locations from being approved. Then, shortly after, Big Brew itself would set up shop in that exact same spot.

One franchisee put it bluntly: the moment you find a great location, that’s the moment you lose it.

This wasn’t a one-time complaint. It showed up across multiple accounts, from multiple former owners, in different parts of the country.

A pattern that’s hard to call a coincidence.

Got it. Moving to the account management problem.

UNPROFESSIONALISM

When you sign a franchise deal, you expect support. Someone who knows the business, answers your calls, and helps you when things go sideways. That’s part of what you’re paying for.

What Big Brew franchisees got was different.

Multiple former owners described their account managers as undertrained, unresponsive, and frankly, unqualified. One franchisee used the word “OJT” — meaning the people handling their accounts felt like they were still learning on the job. At the expense of the franchisee.

And the consequences were not small.

One account was hit with a ₱250,000 penalty — almost the same as the original franchise fee — over an allegation that they were buying supplies outside of Big Brew’s approved channels. The franchisee had proof of purchase from Big Brew’s own suppliers. Didn’t matter. The account manager pushed through the charge anyway.

For a first-time business owner who already stretched their budget to get in, a surprise ₱250,000 bill isn’t just frustrating. It’s devastating.

BAD BUSINESS ECONOMICS

Allegedly, every peso that comes into your Big Brew kiosk, 60% of it goes straight to the cost of goods (COGS). That’s your coffee, your cups, your supplies (all sourced from Big Brew’s approved channels at their set prices). You don’t negotiate that number. It’s fixed.

That leaves you with 40%.

From that 40%:

You pay your rent.

You pay your electricity.

You pay your staff

Some franchisees even reported that even at decent sales volumes, meeting minimum wage was a struggle. There’s also the 2% royalty fee charged on your gross sales.

Not your profit. Your gross.

One former owner described the cashflow as “maganda ang ikot” — it looks like money is moving. But looking busy and actually making money are two different things.

The business was not designed for the franchisee to win. It was designed for money to pass through the franchisee and into Big Brew.

TOO MANY TOGETHER

The franchise contract had a distance rule. There should be enough space between each Big Brew location so that one branch doesn’t eat into another’s sales. That protection was in writing.

It just wasn’t followed.

Franchisees reported Big Brew kiosks being set up right beside each other — sometimes on the same street.

WHAT HAPPENS WHEN YOU SPEAK UP

In a healthy franchise system, a franchisee who raises a concern gets a response. A fix. At minimum, an acknowledgment.

In Big Brew, franchisees say they got something else.

One former owner of six branches described what happened after a group of franchisees banded together to file complaints. Management didn’t address the issues. Instead, multiple stores were shut down simultaneously. The message was clear: complain, and you lose your business.

Franchisees reported that some owners would sabotage fellow franchisees — spreading rumors and sowing distrust — just to get closer to the CEO and secure favors.

Instead of a community of business owners supporting each other, it became a competition for survival.

THE EXIT TRAP

If you survived your contract and thought of leaving they won’t let you.

Franchisees who reached the end of their contract reported being hit with penalties and renewal fees on the way out.

Former owners say that management’s end game was the location itself. The good spots that franchisees built up over two years — the ones with the foot traffic, the loyal customers, the proven sales — those were the real prize. Once the franchisee was out, Big Brew would move in.

It reframes everything. The blocked location approvals. The complaints that got stores shut down. The penalties at the end of the contract. All roads led to the same destination: get the franchisee out, keep the location.

SO WHAT DO WE LEARN FROM THIS?

Always ask for an official receipt. If a franchisor cannot give you one, that is your first red flag. No receipt means no paper trail. No paper trail means no protection.

Read the contract with a lawyer. If the amount written on the contract does not match what you actually paid, you have already lost before you even opened.

Check if the distance rules are being enforced. Visit existing franchisees in the area. Talk to them. Not the ones the franchisor introduces you to. Find the ones they don’t want you to talk to.

Do the math. If 60% goes to COGS before you even pay rent and wages, the numbers need to work on paper first — not just in your hopes.

Remember: A long line of customers means nothing if the system behind the kiosk is built to drain you.

YOU CAN FIND THE FEEDBACKS AND STORIES FROM THIS REDDIT POST.