- 1). Request a franchise information packet.
You should begin your coffee café franchise search by looking through your local phone book and finding coffee café franchises in your area; then compare that list with an online search. You want to determine if there is a coffee café franchise that has not yet been opened in your area and which are currently available.
Once a comprehensive list is complied of coffee café franchises in your area and those that do not have a location, contact each of them a request a franchise information packet and any other literature they may have available. - 2). Talk to owners of local coffee café franchises.
Go to local coffee café franchises and speak with the owner and/or manager. Ask them how the franchise agreement is executed and what support and relationship they have with the franchisor. You want to glean as much information as you can from people that have experience in doing business with the coffee café franchisor. Ask what type of marketing they do on behalf of the franchisees and what incentives they offer (such as promotional materials, inventory and money). If possible, meet other owners of the same franchise to compare and contrast their relative experience. - 3). Look into the coffee café franchise's background.
Due diligence is important when entering any business investment. You'll want to look into the coffee café franchise's background and learn how they started, what their current size is and market share. You'll also want to see if they have any legal actions pending against them (this information will be available in the franchise's offering circular---a disclosure document which details any lawsuits and/or bankruptcies). - 4). Hire a professional business broker.
If you are a first time business entrepreneur, you should seek the advice of a professional business broker. They are extensively experienced in the business buying and selling process and know how to identify key issues that may adversely affect a franchisee. For instance, they can identify if the franchisor has over saturated a market, charges higher franchise fees than are standard in the industry, and often know about the franchisor's reputation with its franchisees. - 5). Choose the coffee cafe franchise that is best for you and sign the franchise agreement.
Once you've identified which franchises are available and have investigated their background, ask for a franchise agreement from each. Review the agreement and compare franchise fees and franchisor support. Chose the one that best fits your needs and sign the franchise agreement.
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