Owners of small coffee shops start out just wanting to succeed, but once you've arrived, making the most of coffee franchise opportunities can expand your business beyond your wildest dreams. Turning your business into a franchised company or deciding to buy into an established franchise takes research and an understanding of the coffee franchise industry.

In order to succeed at owning a coffee company franchise, you need to get familiar with the coffee industry, learn what franchises succeeded and why and start marketing your coffee franchise opportunity. When starting down the road to expansion, consider the following:

1. Keep abreast of the current trends in the coffee industry so you can make the most of your coffee franchise opportunity.

2. Learn all you can from current coffee franchise owners and take advantage of courses and seminars that cater to potential franchise owners.

3. Take advantage of the Internet to market your coffee franchise to potential franchise owners.

Action Steps
The best contacts and resources to help you get it done

Stay up-to-date on the coffee industry and coffee franchising

Expanding your business requires not only a good product, but staying on top of the current trends. If you are ready to franchise your business, find something unique that sets your shop apart from the others. Knowing what consumers are looking for will help you stay on top of the market.

I recommend: Become a member of the Specialty Coffee Association of America and subscribe to the monthly newsletter, the SCAA Chronicle, for up-to-date information on the coffee industry. Compare your coffee franchise business to others in the industry at Franchise Direct. Seeing what others offer potential buyers will help you determine how to make your business stand out above the rest.

Research successful coffee franchises and learn from their strategies

Owning a small business is a great way to prepare for owning a franchise, but taking advantage of the knowledge of those who have gone before you is a smart move. Researching successful franchise businesses can help you decide if you are on the right path to franchising your own business or buying a franchise location.

I recommend: Request information from the Java Bean Review to learn about successful coffee franchises like Starbucks and Coffee Beanery. The Franchise Buyers Network has gathered information about initial costs, site selection and training offered for different, well-known coffee franchises. Use this information to weigh the pros and cons of different franchises, and request information for those that interest you.

Use the Internet to market your coffee shop franchise and business opportunities

Marketing is the only way to get your new coffee shop franchise opportunities into the hands of potential buyers. The Internet can reach far beyond other means of advertising, and can help you quickly expand your business.

I recommend: Frandocs offers help with web design and Internet marketing to make the most of your coffee franchising opportunity. Get quality leads and serious inquiries by advertising with FranchiseAdvantage.com.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  If you are on the fence about starting a coffee franchise from your existing business, consider the pros and cons. You will not be overseeing the day-to-day business dealings, but you will get paid for each shop that opens, and your franchise locations are being run by motivated people who put their own money on the line.

Coffee franchises have grown to become some of the most successful and lucrative industries in the world. Coffee drinking has become an important tool for fueling social gatherings in our modern age. Many professionals even work from coffee houses.

If you are considering opening a coffee franchise, you have many to choose from. There are some that have thousands of locations across the world and pose little risk at all, while others are still relatively unknown.

When thinking about a coffee franchise, you need to:

1. Look at your local area, and see how many coffee franchises there are already.
2. Sort the coffee franchise opportunities by how much investment is needed.
3. Gain experience in the food service industry before contemplating opening your own.

Action Steps
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Franchise a drive-through coffee shop.

In the right location, a drive-through coffee shop franchise can be a goldmine.

I recommend: Consider up-and-coming coffee franchises Cuppy’s Coffee and Java Girls.

Invest in a franchise coffeehouse.

A coffeehouse differs from other coffee businesses in that it specializes in coffees and teas, but offers light snacks as well.

I recommend: Consider Scooter’s Coffeehouse, Rock'N Joe Coffeehouse, or It's a Grind Coffeehouse.

Open a coffee franchise kiosk.

A kiosk takes much less overhead to open and operate, since there is no permanent building to occupy and only one employee works at a time. Coffee kiosks are very popular in heavy traffic areas. Consider franchising one of these for less of an investment.

I recommend: Look into Mountain Mudd kiosks or My Coffee kiosks.

Buy into a cafe.

A cafe can be a variety of things. Most cafes specialize in coffee and tea but also offer a full menu of hot food and sometimes entertainment such as live music or poetry reading. There are many successful franchises, but a large investment is required for most.

I recommend: Think about Seekers, Cafe Yumm, Amazon Cafe or Nestle Toll House Cafe.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  Talk to others that have bought into this franchise, and discuss their concerns and benefits.
• •  Make sure you have a competitive advantage in your area.

The pricing and costs of coffee franchise opportunities vary widely from company to company, and the start-up costs can reach as high as $600,000. There are franchise fees that can range anywhere from $5,000 to $50,000, as well as royalty fees that can be as high as 10 percent. By creating a budget up front, you'll have a working guideline for how much you can spend on a coffee franchise business. How much you can spend will determine what type of coffee franchise opportunity you can consider.

Once you have established a budget, you need to consider what type of coffee company franchise you can purchase and whether or not the franchise agreement is acceptable. When making your decision, consider the following:

1. Find lenders that work well with small businesses and franchise owners.

2. Compare the costs for each coffee shop franchise you are considering. Think about the initial investment as well as additional or hidden fees.

3. Consult an accountant and know the cost of running a franchise before making your purchase. Track ongoing costs so that you can stay on top of your business spending and profits.

Action Steps
The best contacts and resources to help you get it done

Learn what type of financing coffee franchising requires

You need to be prepared for an initial franchise fee, which usually start around $5,000 and go up. This fee is paid up-front and is non-refundable. Also, after putting 30% to 35% of your own money down as an initial investment, you will still need financing. Franchises need a location, equipment and supplies, and you need to find financial companies that will work with you to make your plans a reality.

I recommend: Specialty Coffee Finance is a unique company that helps coffee shop owners and prospective owners get financing for equipment and supplies and offers an online application. Start a relationship with a lender that understands the franchise business, such as Irwin Franchise Capital, and one that will work with you on financing real estate and equipment for your business.

Compare the price of different style coffee franchises

An initial investment for new coffee franchise opportunities can cost as low as $15,000 and as high as $600,000 or more, depending on the type of franchise you purchase. If you are looking for atmosphere, you will probably pay top dollar, but if you are looking to offer convenience to your customers, you should consider drive-thru franchises as well.

I recommend: Franchise Gator allows you to search possible coffee shop franchise opportunities. Look for companies that are within your price range, but pay attention to whether or not they offer training, hiring assistance or help finding a location for your coffee shop. Consider companies, like Bear Creek Coffee or Cuppy's Coffee, that offer drive-thru store opportunities that eliminate some of the on-going costs of larger, sit-down type coffee franchises.

Get expert analysis before buying and track your expenses after buying a coffee franchise

When you enter into a franchise agreement, you need to make sure you have an expert look at the agreement before you sign your name. A franchise attorney is going to run you between $1,000 and $3,000 dollars, but it is a small price to pay to make sure your hard-earned money is being spent wisely. Once you determine your franchise of choice is a good choice, be prepared to track your expenses and income carefully.

I recommend: Visit Franchising Attorney to search for legal advice in your area on franchise agreements, real estate and other areas of franchising. PlanMagic Corporation offers software specifically designed for the coffee industry to help with financial planning and give an accurate analysis of how much you spend on salaries, fees, equipment and supplies.

Tips & Tactics

Helpful advice for making the most of this Guide

• •  When you are buying an existing coffee franchise business, find out why the owner is selling. If the price is too good to be true, do some investigating. Look at competitors in the area, talk to the customers and research the company's reputation and earnings. If you see any red flags, walk away from the deal.

Owning and operating a coffee franchise can be a rewarding business opportunity. There are countless coffee franchise opportunities available at any given time. These business prospects are pack full of coffee related lingo that can be difficult to comprehend. Before you sign on the dotted line take a look at the most commonly used coffee franchise opportunities key terms. The knowledge you gain is sure to be beneficial for you and your future business.

Action Steps
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Drive through

A drive through or drive-thru is a window where customers can approach in vehicles place, pay for and pick up orders. Some coffee businesses are completely based on drive through traffic, but others have windows and indoor seating areas.

I recommend: Gain knowledge about drive through options at Coffee Universe.

Kiosk

A kiosk is a free standing building. It originated in public areas as a place to gather information. Coffee kiosks can be located in shopping centers or parking lots. They are small businesses that usually have lower start-up costs than full franchise stores.

I recommend: For additional information about coffee kiosks check out Entrepreneur Media, its site includes basic facts about running a kiosk.

Coffeehouse

Coffeehouses are traditional coffee franchise opportunities. These are structures with indoor seating and ordering. They are commonly used by nationally recognized franchises in the coffee industry.

I recommend: Learn about coffeehouses and the history of coffee at BMI Global Consultants.

Café

A café is a small eatery and coffeehouse combined into one. Cafes are popular in European countries, but they can also be found in locations around the world. A café is the ideal coffee franchise opportunity for those who wish to serve a variety of foods with the beverages.

I recommend: Find out the basics of a café at the Internet Cafe Guide.

Franchise

A franchise is a business that has a following. It offers instant recognition, and that hopefully means instant customers. Most well-known businesses in the United States offer franchise opportunities.

I recommend: To learn more about the word franchise and the basics of buying a franchise, visit the State of Wisconsin Department of Financial Institutions.

Specialty coffee

Specialty coffee is made in a specific way, and with specific ingredients. Sometimes only certain businesses are cleared to sell brands of specialty coffee. It offers a wide variety of flavors that are sure to satisfy all of your customers.

I recommend: For more information about specialty coffee visit the Specialty Coffee Association of America.