Specialty Coffee Retailer is a publication for owners, managers and employees of retail outlets that sell specialty coffee. Its scope includes best sales practices, supplies, business trends and anything else to assist the small coffee retailer.
Issue link: https://read.dmtmag.com/i/76684
story—training, marketing, fl exible operational models and quality assurance standards, along with our signature drinks and branded products," Verges says. "However, we look for capable sophisticated operators that do not require a preponderance of operational oversight [and] that have the funds available for initial capital investment." POSITIVES NEEDED Cathy Bauer, the franchisee for Cabin Coff ee in La Crosse, Wis., says some of the qualities that are important for a potential franchisee to possess are a positive mental attitude, good communication skills, leadership ability, good character, morals and values. "Most importantly, they need to display a passion for the business opportunity and serving others," Bauer says. "Good credit is a must. We also need to be sure that it will be a good fi t for their family. of fi nancial commitment varies greatly, dependent on the location—leasing vs. purchasing, new construction vs. remodeling, drive thru, stand-alone building or in strip mall. "It could range from $250,000 to $650,000," Bauer says. "One very important component is not only the initial investment for construction, furniture, fi xtures, equipment, and products, but that they have enough working capital to help them through the fi rst year while they are building their customer base and brand in their community. a franchise fee and ongoing royalty fees, which vary by company. For potential Cabin Coff ee franchisees, the dollar amount or license fee. "We charge a competitive franchise royalty rate as percent of gross sales and a minimal marketing fee, says. "No upfront fee ensures that our focus is on fi nding truly CC's master license agreement does not include a franchise " Verges " On the franchisee side, most brand programs include " qualifi ed and capable licensed partners that can be long-term stewards of our coff ee house tradition." is dictated by the character and scope of the concept. "An important fi nancial commitment to make when seeking to franchise your concept, is to the quality and accuracy of your Franchise Disclosure Document (FDD), FIND A LAWYER At Scooter's Coff ee & Yogurt, the fi nancial commitment "Invest in a credible and quality franchise attorney who will prepare your FDD and its exhibits on the front end, and assist with annual new releases. It's so important that a person be adequately prepared in this area, and fully advised by an attorney with experience in franchise law. Also, the franchisor will be required to have their fi nancials audited by a CPA annually. Th is is a required exhibit of the FDD, and is another annual fi nancial commitment." CC's provides licensees with Community Coff ee Private " Graeve says. Reserve selections, Signature Mochasippi frozen beverage, CC's Specialty Tea Selections and Retail Tins, CC's Branded Exclusive Blends, CC's Iced Coff ee Blend, smoothies and pastries. "We require a color scheme and branded signage package that embodies our rich, bold and colorful history, Verges says. Likewise, all Cabin Coff ee Company locations have specifi c " requirements in terms of the décor, products and services. "We want consistency in all locations," Bauer says. "Branding is one of the most single important aspects of our business. It is not only the look of the building—inside and out—it is the consistency and quality of products served and the way in which they are served. We provide each franchisee with a list of approved vendors and the approved items from each vendor. Th ey also provide them with very detailed and specifi c training materials to utilize when training new team members. Cabin Coff ee Franchising chooses not to mark up the fi nd creative ways to market their store and make connections within their community to maximize their sales potential. items that are purchased directly from them. "Th e best way that we can increase our revenue as a franchisor is to help our franchisees increase their revenue, " Bauer says. "We help them " SMALL IS BEAUTIFUL For the prospective owner who is thinking of buying into an existing franchise, industry experts agree that there are key advantages for business owners to consider buying into a smaller chain versus a behemoth. For a small to medium size franchise company like Scooter's C���� C����� ������ ������� ���� ��� � W������ ���� ��� ��� ���������, ����� �� ����� ����� �� ��� ������������ ��� �����������. 20 | August 2012 • www.specialty-coffee.com Coff ee & Yogurt, you're getting in at ground level. Although they're growing quickly (more than 100 stores in 7 states), territories near the company's home front are still available and off er vibrant brand equity. "Th ere's defi nitely a sense of family with a smaller chain like Scooter's," Graeve says. "We care about each franchisee and his "