Is investing in a franchise risk free?
The risk involved in participating in any reputable franchise system should be significantly less than the risk involved in proceeding in a similar business on your own account. Any retail business involves risk and The Coffee Club cannot guarantee the sales of a particular café or its profitability.
Should I seek independent advice before entering The Coffee Club's franchise system?
The Coffee Club requires that its franchisees obtain competent legal advice before entering into the franchise documentation to ensure that franchisees fully understand their obligations.
In addition it is recommended by The Coffee Club that franchisees retain the services of a competent accountant and commercial business advisor.
Do I need prior experience in the retail coffee business?
No. Previous experience managing a retail business is a great advantage and the preferred way to becoming a franchisee with The Coffee Club. However, our extensive training program and years of experience will help you to operate your own store.
Is there a standardised procedure that I am required to follow?
Yes, however the procedures are simple. The Coffee Club's systems for diversified matters such as reporting, insurance, accounting practices, purchasing, hiring and training new staff, cost control, marketing, merchandising and other essential functions contribute to the efficient operation of your store.
Why do you charge an initial franchise fee and a training and project management fee?
The initial franchise and training fee is in consideration of The Coffee Club establishing the business and in particular compensates for:
- Selection of a location and lease terms using the negotiating strength of The Coffee Club group.
- Supervision by The Coffee Club of the complete design, construction and fit-out of the cafe.
- Provision of training and assistance prior to and at the initial opening of the cafe.
- The initial right to use The Coffee Club's intellectual property.
What services do the ongoing franchise fees cover?
These fees entitle you to continue to be part of The Coffee Club system, as well as benefit from the following services:
- Supplier selection and volume buying arrangements.
- Standardised accounting and reporting.
- Research of new and varied products.
- Staff training and management assistance.
The Franchise Fee (6%) is set as a percentage of your weekly sales so that we only benefit as you do.
What is the Marketing Fee?
The purpose of the Marketing Fee is to pool the marketing contributions in a fund for all franchisees to maximise any possible benefits. This fee is set at 3 percent of your weekly sales.
Where do I purchase my supplies?
Most required materials will be delivered to you by local suppliers organised by The Coffee Club. The Coffee Club has made arrangements with various suppliers to ensure that stores receive a continuing supply of high quality materials at an agreed national price.
How do I obtain financing?
If required, The Coffee Club will assist you in submitting an application to a lending institution. Similarly to buying a house, you will need a deposit and sufficient security.
What is the investment required to open a franchise with The Coffee Club?
The estimated initial investment for a store ranges from $450,000 - $550,000 depending on the site and style of the store.
What will be my Return on Investment?
This relies on the growth and profitability of the business under your ownership. We would hope that your investment pays you handsome returns; however we cannot predict or guarantee what this return may be.
What is the length of my franchise agreement?
The initial term of the franchise agreement will match the term of your lease.
How soon after approval can I expect to open my store?
Location is the biggest determining factor, and site selection requires a tremendous commitment, talent and expertise. After site identification and The Coffee Club's site approval, next are lease negotiation, design, layout and construction. This process can take 6 to 12 months.
Do you have opportunities for multi-location development?
Yes. For qualified individuals, we have multi-location development opportunities. This will be assessed on an individual basis.
Will I be able to sell the business in the future?
Yes. The franchise is yours to sell under certain guidelines and conditions. The Coffee Club will need to give approval on the selection of new franchisees in the same way that you have been approved. The purchaser will continue the operation of the franchise.
I am definitely interested in The Coffee Club as a franchise opportunity. What do I do next?
Complete the online application here. Upon receipt of your application, one of our representatives will contact you.