Coffee Shop Franchises - 5 Points to Ponder

Are you thinking about opening a franchised Coffee Shop? Are you swayed by the ease of setting up a business that will have immediate customer “brand recognition”? Looking forward to having experts to turn to for assistance on finding a great location, access to great interior design and help with marketing your business?

Well, a franchise operation will certainly offer you all these services. However, before you commit yourself, think seriously about the following few points:

1. Franchise fee – you will have to pay an initial franchise fee, which may be non-refundable and can cost from thousands to hundreds of thousands of pounds.

2. You may be required to pay a “grand opening” fee to the franchisor to promote your shop.

3. Royalty payments will be based on a percentage of your weekly or monthly gross income. The better you perform, the more you will have to pay the franchisor.

4. You may have to contribute towards advertising fees – even if your contribution goes towards national advertising, rather than your individual shop.

5. The franchisor will be responsible for site approval – and may not approve the site you want for your shop.

About the Author:
Further information about coffee shop startups is included in our website http://www.howtosetupacoffeeshop.co.uk where you can download a free newsletter and Don Clarke's top 10 tips. The guide will soon be available in Turkish, and a version is currently being prepared for the US market.