Diedrich Signs Pact With Colorado Chain

Diedrich Coffee Inc. said Wednesday that it has signed a franchise agreement with Coffeehouse Colorado to develop 40 coffeehouses in Colorado bearing the Diedrich brand over the next five years.

Financial terms weren’t disclosed.

Irvine coffee-seller Diedrich said in a press release that Coffeehouse Colorado also will operate six existing Diedrich Coffee brand coffeehouses and espresso bars in Denver.

Diedrich has signed several similar franchise arrangements as part of a nationwide expansion strategy. The company said it plans to add 1,200 to 1,500 coffeehouses over the next five to seven years. With 360 stores in 38 states and nine other countries, Diedrich remains a distant No. 2 to Starbucks, which has more than 3,000 locations.