Coffee Shop Franchise - Is This A 'Cup Of Success'

If you're seriously considering a coffee shop franchise, there's a few things your really should take into consideration before you dive right in and start your business. The process of buying any franchise requires a ton of due diligence and careful planning. Far too often first time business owners or entrepreneurs jump at the first opportunity that comes their way and they don't do enough behind the scenes to make an informed decision.

First, coffee shop franchises are popping up everywhere not only in suburban areas but in rural areas too. Why? One reason is more people are drinking coffee and the locations seem to be on every corner. But that's only part of the reason. The truth is the culture and atmosphere that coffee shop franchises create. People come to hang out, do some work, have meeting, enjoy their favorite flavored drink enjoy life.

The really positive side to this industry is the profitability because the profit margins are absolutely HUGE. I mean people are paying $3 - $4 or more for a cup of coffee that probably has a total expense of $.25. Percentage wise that's really big, but selling cups of joe is a volume business. I'm pretty sure nobody's getting rich selling a few $4 coffees. The real secret to increase the volume dramatically is to have a drive-thru. People are lazy and they want their stuff fast.

On the flip side, the total costs including the cost to entry can be significant. Initial franchise fees can range from 5 figures all the way up to 6 figures and beyond. On top of that, you have to get a retail location (or maybe they just 'tell you' where you're store will be), maybe lease large equipment, get inventory, have fixed and variable costs, marketing costs, employee wages, utilities and so much more. You'll also have to pay royalties to the franchisor and those are usually based on gross revenues, not net profits.

What you really must consider is why choose a franchise model versus a traditional business model. The easy answer is the 'proven system' that franchises have, especially coffee shop franchises. The business plan, the marketing plan, the training and much more already have been proven to work and they do as long as you follow the plan. In a traditional business model, you are left to figure it out on your own, however you can actually make more money because you don't have to pay royalties and franchise fees.

To learn more about a franchise with NO territory restrictions, NO royalties, NO credit check or minimum net worth and home-based, visit BizziBiz Franchise now or contact Gerek Allen directly for more information.