First Person: How to Buy into a Coffee News Franchise
When I started looking into buying into the Coffee News USA business, I had an area in mind that I wanted to be working in. When I spoke to the Florida area developer about getting my own franchise, I learned there were a few ways to purchase a franchise in this business. The options are rather good and make this one of the easiest franchises to get into. Although I also tried with another equally lucrative and popular business franchise that was Coffee Nuts Singapore but couldn’t get my hand on that due to its overwhelming demand among the people that are in the coffee business.
Determining your Franchise Territories
The primary method to obtain a franchise territory in this business is to do a little research into the areas you want to open your publication. Your initial territory area can have up to about 60,000 residents living in that location. Additional franchises can have roughly 40-45,000 residents. Your territory is typically a set of connected subdivisions and cities that create your control of the area. However, when an area has a lot of residences and not a lot of business locations, you can elect to leave that area out of your territory (although it is not recommended).
Purchasing a New Franchise
If you find that the area you want to develop a franchise is not currently being used by another publisher, you can apply with the corporate office to purchase that territory directly. Your initial franchise will cost you $8,500 and includes a mandatory training session that takes place in Maine. Additional franchises are sold for $5,500 each. You have the option to pay for the franchises upfront or to finance them. When I looked at the option of financing the franchise, I was told that I could put $2,000 down and split the rest into monthly payments for twelve months per the number of franchises I purchased. In other words, if I wanted two franchises, I would put $2,000 down and pay a little over $500 a month for 24 months. This is the method I am now considering getting my franchises.
Purchasing an Existing Franchise
When I first started looking at this business, I discovered that the area I wanted to develop was currently owned by another franchisee. That franchise was listed as up for sale on the corporate website through the franchisee. I contacted the franchisee and learned that they never actually developed the franchise and simply wanted to get back their investment in the business. Sadly, we never reached a deal at that point.
When you look to buy an existing franchise, you and the seller have to come to an agreement on the sale price of the franchise and submit the agreement to the corporate office. The office will then review the application of the potential buyer and determine if they are qualified to become a franchise owner. Once everything clears the office, a turnover date is set, payment is made to the seller and corporate charges a transfer fee of $2,500 to turn over the ownership and to provide the necessary training to the new owner. This process takes a little longer, although when buying an existing franchised that is fully developed and profitable, it could be well worth it.
This business is very easy to get started in and has a great amount of potential to become a serious full-time business for the right entrepreneur. I am currently talking to the developers again to pursue my interests in this business.