Review of the Coffee Beanery Franchise Opp and Startup Costs

Who doesn’t love a good cup of coffee? From those who just take their coffee black to those who want a triple shot, half-fat, no whip mocha latte, a franchise that focuses on coffee in a high traffic location is certain to find profitability. You could start your own business and work to establish your own brand… or you could do what dozens of other business owners have done and invested into the brand indentity of Coffee Beanery.

Why Choose Coffee Beanery Over the Other Coffee Franchises?

Unlike other coffee brands, Coffee Beanery doesn’t limit your franchise opportunity to a certain location in the United States. They are a far-reaching coffee brand that is more focused on the actual location of your franchise more than anything else. As a franchisee, there is an expectation that you will find a commercial location that is a:

• Pad site with a drive thru.
• A strip mall location in a high traffic area.
• A street front that has high visibility.

Alternative high traffic locations are also considered, such as an airport location, a shopping mall, or even a location near a university. Over 20 different factors are considered in the franchisee’s overall location and assistance locating the best real estate location in your community is offered when an investment into this brand is made.

What Is the Initial Investment To Have a Coffee Beanery Franchise?

To own and operate your own Coffee Beanery, the first step in the process is to pay a $27,500 franchise fee. Even though the cost is higher than other franchise opportunities, it is one of the most inclusive fees that you’ll pay within the industry. In addition to the assistance with the site location, you’ll receive assistance with the layout and design of your new franchise, custom printed materials to help your new franchise get off the ground, and the ability to use the Coffee Beanery trademarks and logos.

You’ll also receive help with your grand opening and have access to ongoing marketing and support. Before you achieve your grand opening, however, you’ll also need to go through the exclusive training programs that Coffee Beanery has set up to make sure that your end product matches the quality and consistency of the brand expectations. This includes up to 28 days of initial training, ongoing training with the franchise open, and an annual national convention with workshops specially designed to help each franchisee find more success.

Are There Other Franchise Fees To Pay With Coffee Beanery?

The one down side of owning a Coffee Beanery franchise is the amount of royalties that must be paid on the gross sales of the business. It starts with a 6% royalty that funds the ongoing development of the brand. System updates, product enhancements, and toll-free support are all included as part of this royalty which is required to be paid on a weekly basis.

In addition to the general royalty, Coffee Beanery also mandates a 2% royalty that goes into the national brand’s marketing fund. Marketing and advertising materials are provided to each local franchise in exchange for this fee, as well as building materials that may be needed to help establish the local brand identity.

In order to qualify as a franchisee, you must have a net worth that exceeds $500,000. You must also have enough liquid capital to cover $150,000 at any given time. For the average investor looking to start-up a new Coffee Beanery franchise, the initial total investment required is $375,000. Some franchises start for as little as $300k, while others have needed a minimum of $450k to get off the ground.

Even if you meet the income and cash liquidity stipulations, you still may not qualify to become a franchisee. Coffee Beanery looks at each application in a one-on-one fashion and creates individualized criteria that must be met.

Coffee Beanery Helps With the Employment Process Too

One of the biggest reasons why a coffee business fails is because of the lack of overall service that is provided by its employees. A barista must have a certain skill set and a social personality to create a winning experience for each customer. To assist each franchisee with this process, a pre-employment screening tool is provided to each owner without limitation so that the right employees can be found each and every time.

Support services are also available on an unlimited basis. This includes the fulfillment of online orders, training manuals, and access to marketing and advertising information. The typical turnaround time is 1 to 2 business days for each request that is made.

What About the Allegations of Fraud with Coffee Beanery?

It is true that about 5 years ago, a series of franchise owners attempted to remove themselves from their Coffee Beanery investments. Some franchise owners lost over half a million dollars, but many of these losses were incurred from legal costs to get out of a 15 year franchise agreement. As with any business, there are risks that are associated with an investment. Some concepts and designs don’t work as anticipated and some locations that appear to be promising end up not working out at all.

In 2006, Coffee Beanery was ordered to allow all Maryland franchises out of their contracts because of legal documentation that didn’t comply with state law. In 2008, Illinois also followed suit. Because of these issues, some investors may choose to stay away from a Coffee Beanery franchise because the risk outweighs the reward.

For others, however, there is the great potential for success and many franchise owners are experiencing great success every day. If you’re looking for a unique and affordable franchise opportunity, then Coffee Beanery can provide that for you. With ongoing support and assistance every step of the way, this franchise opportunity might just be right for you. For more specific details about whether you qualify for a franchise, be sure to contact Coffee Beanery today!