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There is some variety in what is considered a coffee franchise. There are dine-in coffee shops, coffee-making equipment franchises, and drive-through coffee shops. Before investing in one of these, determine which type of coffee franchise appeals most to you. Some franchise agreements specify a geographic territory in which you agree to open and operate a certain number of stores. In order to be successful you'll want to look into many costs including:
• Investment per store
• Employee Salaries
These are just a few of the many expenses you'll want to look into when planning a successful franchise venture. It is also a smart idea to build expansion plans into your budget.
There are many different kinds of restaurant franchises with prices varying considerably. Some franchise directories allow you to search by investment costs in order to narrow down your search. You may also borrow part of the investment cost if you have a solid track record and a good business plan. You might even want to consider a partner opportunity, partnering with someone who has some money and expertise to add to the plan. Also, some restaurant franchises offer a variety of concepts you can choose from that all operate under the same umbrella. You can pick the concept that suits your budget and interest. Check the Small Business Administration for help in getting started.
Food franchises vary so be sure to make an informed decision when choosing one to put your money into. Some things to be on the look-out for include:
• Food that is appealing and popular in your area
• An operation that can be feasibly run
• Support services offered by the franchisor
• Cost structures
• Advertising offered by the franchisor
• Brand name recognition in your area
Go out and explore. Go into different franchises in and around your area and see how they are run. Get a feel for what you want and need from a franchise and choose accordingly.
In addition to the normal franchise support, a restaurant franchise might need additional assistance (menu creation, food cost tracking, etc.) to successfully run a specific restaurant in the industry.
It is important to make sure that things are run smoothly and legally or trouble could lie ahead. Restaurant labor has specific costs and regulations associated with it. Investigate your local laws and be aware of any specific labor laws regarding food labor, insurance costs, and so forth. Some restaurant franchise agreements specify that the owner must be an active owner/operator, involved in the daily business. Health inspections are another unique factor for food franchises. Make sure you know and understand the expectations and costs involved with your franchise.
Currently, food franchises represent the largest segment of franchises. Food franchises run the gamut from full service restaurant franchises to a coffee house franchises (and everything in between).
Before making an investment in a food franchise, join some online forums and ask questions about the food franchises you are considering. Find out from previous franchise owners the good and bad things about the various food franchises. Discover which ones have good reputations and which have the reputation for not supporting their franchises very well. Many food franchisers end up buying additional franchises because of their success in the marketplace. You may also want to visit a few local food franchises, watch how they operate, and talk to the franchise owner.
|Sheri Ann Richerson|