New Coffee House Investment
It depends on a range of factors including the size of the location, landlord conditions, store fit-out, fixtures, equipment and new franchise fee. However there are a range of other costs and payments for set-up including for initial stock and inventory, legal and accountants fees, insurance and bank guarantees, and you also need to provide for working capital and ongoing costs including rent, labour and utilities.
Established Coffee House Investment
Established coffee houses have the advantage of already being set up in a proven site with a loyal following. The selling price of an existing coffee house is set by the current franchisee, and like any existing business for sale will depend on numerous factors. You will also have to pay legal fees and for your own accounting and business advice.
Agreement term
This varies depending on the lease term. For new franchises this is usually between 5-10 years. For existing franchises this will depend on the term of the franchise you are buying.
Fees
Traditional Stores
Ongoing franchise fee: % of gross sales per month(this includes a % Continuing Technical Assistance Fee and a % Continuing Trade Mark and License Fee).
Ongoing marketing contribution: % of gross sales per month.
Opening hours: Typically 7 days per week, with hours dependent upon individual locations.
