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Are you thinking about opening a franchised Coffee Shop? Are you swayed by the ease of setting up a business that will have immediate customer “brand recognition”? Looking forward to having experts to turn to for assistance on finding a great location, access to great interior design and help with marketing your business?

Well, a franchise operation will certainly offer you all these services. However, before you commit yourself, think seriously about the following few points:

1.

Franchise fee – you will have to pay an initial franchise fee, which may be non-refundable and can cost from thousands to hundreds of thousands of pounds.


2.

You may be required to pay a “grand opening” fee to the franchisor to promote your shop.


3.

Royalty payments will be based on a percentage of your weekly or monthly gross income. The better you perform, the more you will have to pay the franchisor.


4.

You may have to contribute towards advertising fees – even if your contribution goes towards national advertising, rather than your individual shop.


5.

The franchisor will be responsible for site approval – and may not approve the site you want for your shop.

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