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Before you invest in a coffee franchise, you should fully consider the costs involved. Far more than the purchase price, the costs of coffee franchises are formidable. It is not a business that can be undertaken with minimal risk and investment. It's an all-or-nothing proposition. Consider carefully.
Some of the coffee franchise start-up costs that you can count on include:
Purchase price of franchise
Business license and registration
Rent of space
Property and liability insurance
Cleaning crew
Contractor/ construction costs / painting crew (if applicable)
Training wages for employees (if applicable)
Employee salaries (if applicable)
Workers Compensation insurance (if applicable)
Inventory including: milk (full fat, low fat, fat free), soy milk, chocolate powder, roasted espresso beans, roasted coffee beans, filters, bags for whole bean sale (.5 and 1.0 pound size), cups for hot and cold drinks in varying sizes, lids, straws, cup holders, flavored syrups, sugar and sugar substitute packets, temperature-retaining pots for half and half and milk, napkins, carrying trays, stirrers, silverware and plates for pastries, serving platters or display cases for pastries, and more. The major appliances of your coffee franchise as well as employee uniforms and furnishings will most likely be included in your purchase, as they are standardized for all the coffee franchises in the chain. You may still have to purchase the shirts and aprons for the employees. You may choose to pass this cost along to your employees or absorb the expense. You also may find that you simply don't have the funds to afford employees in the beginning. Many franchise owners have manned the counter themselves, open until close, with only the unpaid help of family. The choice is yours. Remember that you should expect to go the entire first year without profit, so it is essential that you have enough funds at hand to cover emergency repairs and inventory and other coffee franchise costs for that amount of time. |
