Is Buying a Top Coffee Franchise really worth the cost?

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Full Description: The best coffee franchises that may not be what you bargained for as an entrepreneur.



The top coffee franchises that are popping up in American culture seem to be booming. But as an entrepreneur is purchasing one of them right for you? Or should you go it alone and open up your own shop.

Top coffee franchises does cost extra start up capital then just be an independent coffee shop owner. There are royalty fees and large franchise license fees. The average top coffee franchise fee is around $35,000.00 and the royalty rate is 5% of your net sales. You may decide to save this cash and invest it in your own concept. Is not saving all this cash smart? Maybe if you are good at marketing and have a clear vision of where your business is headed; plus be willing to work long hour understanding your clientele. This eliminates most from being successful at this route. Making all the decisions of a start up coffee shop and making some mistakes along the way can be disastrous. This is why 95 of all independent coffee shops go out of business in less than 2 years. However if you like playing the odds it may be a good gamble to become an independent. But be warned most of these 95% ended up owing more than the $35,000.00 fee that they could have paid .

On the other hand, approximately 90% of coffee franchise owners do survive past this 24 months period. The have a road map to where the business is going and the paths they need to take to get it there. They even had location help to get their coffee franchise shop opened in a prominent location. They are given help setting up the design of the shop and with the menu and pricing there of. Plus they are told what equipment would be best for their particular location. Thus this help leads the owner to managing and growing his or her business. The do not have to develop one on the way.

Some true entrepreneur types do not like following a standard business model. When you sign a franchise agreement you are bound by offering their standard products and offerings. This keeps the consumers experience similar no matter which shop they may frequent. This has helped McDonalds be successful. They are very consistent. They may not sell the best burger in the world but you pretty much know what you will be receiving when ordering a Big Mac.

If your looking to have a job where no one can fire you and you can work a plan; than a franchise may be for you. A franchise is great for individual that can see a model for what it is. A franchise is a proven business model that has had success in the past.

It’s a personal decision. Most would be safer investing in a franchise. There are an awful lot of unexpected hurdles you could find yourself in going it alone. That is my recommendation to the average person dreaming of owning a coffee shop.

However if you decide to go the independent coffee shop route and are one of the 5% that survive the first 2 years than you could be selling franchises yourself. Which ever path you choose; I wish you success on your new coffee shop adventure.







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