Tag: franchise owner

The Potential Pitfalls of a Coffee Franchise

All businesses have a few potential pitfalls that should be watched for when considering a partnership of sorts, as would be the case with a coffee franchise. A coffee franchise has excellent possibilities when it comes to profits but the reality is that most coffee franchises fail to capitalize on the massive profits that could be earned. This doesn’t mean that there aren’t many franchise owners that are doing well financially with their coffee franchise businesses. It simply means that there are many more who aren’t doing as well financially as they should be with their coffee franchise businesses.

At the same time you really should examine potential problems that often arise when becoming a part of a larger franchise organizations rather than going it alone. More often than not the benefits far outweigh the potential problems but you should be aware of both the potential for great success and the potential for a few stumbling blocks (or outright landslides) along the way as the result of a franchise affiliation.

The first roadblock that often arises is that you, as a franchise owner, are more often than not limited to products created by and for the franchise to serve in your coffee caf, shop, or house. This means that the new great flavor that you fell in love with last week may never be on your menu and many business owners find this to be a hard lesson to swallow.

The other problem with being limited to the corporate version of products and goods is that these are often neither the best nor the least expensive. This means that you are likely going to pay more for something that you may not truly appreciate the quality of. Hopefully, if you’ve elected to go into business with a particular franchise company you appreciate their quality but every once in a while something better comes along at a better price and it’s difficult to pass it up though you are often required to do so.

Another big problem for those who go into the business of owning a coffee franchise often come across is the fact that you’ve dreamed of becoming your own boss and running your own business only to find out that you are still a slave to corporate policies and your own franchise agreement if you want to keep your franchise rights.

Worst of all for many people is the fact that after years and years of being told how to dress and what to do at work you might find yourself required to wear a uniform when working in your very own store as well as being told how to serve the products you are paying to serve. It’s a tough role for some to swallow. Unfortunately, it’s part of the package if you want to enjoy the benefits of building a business with a coffee franchise. Only you can decide, in the end, if the pitfalls are worth those benefits.

How to Compare One Coffee Franchise to Others

A coffee franchise in most areas is a solid business decision. The complication often arises when deciding on one coffee franchise over its many worthy competitors. There are many franchises on the market that offer coffee as a primary source of revenue. Consider some of the following things when deciding which coffee franchise is the best one to meet your needs while promising the most solid financial future for your business needs.

Start up fees. Different coffee franchises will have different requirements for building space, design, dcor, equipment, inventory, and other associated fees in order to begin your business. Make a list of all the franchises you are interested in purchasing, the fees involved in starting the business, and what is included in those fees as well as what other money you may need to come up with on the front end of your business venture.

Financing. Many coffee franchises have resources to help those who wish to buy into the franchise find financing. Some do not however. If there are opportunities for financing within the franchise this is a plus to many would be franchise owners while others prefer to come up with their own financing. Some franchises also require those who buy into the franchise to have a certain amount of money to invest in addition to any financing. You need to hammer out all the fine print and financial details before making any decisions or property purchases.

Franchise fees. Every franchise has fees associated with buying into the franchise. In essence you are ‘renting’ the name of the parent company in order to run your business. Each franchise will have certain requirements of those who buy into the franchise by means of monthly fees, advertising contributions, required inventory, and other requirements that may not exactly be financial (among these are uniforms, store policies, and procedures for paperwork). Understand before buying into a coffee franchise exactly how much the franchise fees will be each year (or what percentage of your revenue will be required) and what those fees buy you as the franchise owner.

Training/Support. This is the final of the major considerations you need to check when comparing one coffee franchise with others. A company that offers a true partnership and extensive training and support to franchise owners is worth its weight in gold. You need to find out how much training and support are offered, how they are offered, when they are offered, and what this will mean to you as a franchise owner. A company that offers virtually unlimited training to help you get business up and running is worth more money and higher fees than those that leave you to tread water until you sink or swim.

Consider each of these things when comparing coffee franchises for purchase. Decide which issues are most important to you and which franchise opportunity is most likely to offer all the things you are looking for your investment. That will be the best possible choice though you might want to keep a top 3 list in case something falls through in the process.

Can a Coffee Franchise Secure Your Future?

There are many reasons that people consider franchise ownership. First and foremost among those reasons is a secure future for the family of the franchise owner. Some choose to invest in a coffee franchise in order to plan for better golden years once retirement age has been reached while others seek potential earnings for a comfortable living both now and in the future. Whatever your reason for seeking franchise ownership I’m sure the question as to whether or not coffee really is the way to go has come up at one point in time or another.

Is Coffee the Way to Go?

There is no cut and dried simple yes or no answer for this question. Each investor is different just as each coffee franchise is different. You must consider several contributing factors when weighing whether or not a coffee franchise is the wave of the future you are looking for with your investment dollars.

Many people begin their days with a nice piping hot cup of coffee. Many would be investors seeking franchise ownerships appreciate the symbolism of a coffee franchise business as a new start or beginning and the fact that so many people not only across the nation but around the world begin their days with a cup of this delicious brew.

If you are one of those people then undoubtedly the allure of a coffee franchise will tug a bit and that is a good thing, if you believe you can sell coffee, if you believe in the particular coffee franchise you are considering, and if your target area isn’t already saturated with coffee related businesses and franchises. You absolutely do not want to be the new kid in a saturated market unless you have something new and different to offer that the other coffee franchise establishments in the area do not.

If you are wondering why coffee the answer is relatively simple. First of all coffee is big business. Around the world coffee is being consumed on a more regular basis as many of the negative connotations and side effects of coffee are being replaced by benefits and low or no caffeine options. New people are waking up to the appeal of coffee on a daily basis and many consumers of coffee drink more than one cup per day. This means that those coffee drinkers are likely to return on a regular basis bringing in repeat customers and if you choose the right set up for your coffee franchise you can capitalize on repeat business while also drawing in your share of new loyal customers as well.

Can a Coffee Franchise Secure your Future?

Absolutely! But this will only happen if you choose wisely, treat your coffee franchise like a business rather than a hobby, and take proactive steps in the process of growing and exposing your business. A franchise goes a long way towards establishing name recognition and professional advertising but you must play an active role in the growth of your coffee franchise as well if you are seeking true success and a comfortable living and/or retirement.