Archive for May, 2009
Friday, May 29th, 2009
Many shrewd investors have been considering buying a coffee franchise as of late. The fact of the matter is that coffee consumption, especially specialty coffee, is on the rise. Consider this fact — 49% of United States citizens drink over 4 cups of coffee each day. With that in mind, purchasing a coffee franchise can be a great way for you to cash in on this coffee drinking craze.
However, just because there is a demand doesn’t mean you can purchase any old franchise and start making a profit. For example, how are you planning to compete with the other coffee businesses in the area you plan on opening a franchise in? What competitive advantage due you offer to the marketplace? These things and more should be considered first, before making any investment.
Let’s look a Starbucks as an example. If you were thinking about buying one that was similar Starbucks, and placing it next to Starbucks, you would probably end up losing a lot of money. The fact is a business similar to Starburst cannot compete with Starbucks. But let’s look at another example.
Say the Starbucks you’re going to locate next to didn’t have a drive-through. Your business, is only a drive-through. In fact, most people are in and out under a minute, and they pay half as much for a cup of coffee. Now, you and Starbucks can coexist and still both make a lot of money. That is because you offer different advantages to different crowds.
Before buying a coffee franchise, it’s a must to consider location, competition, marketing, and the business plan of the franchise. However, there is more to it.
A franchise is only as good as the franchisor you’re purchasing it from. A good business plan can go sour under a poor franchise agreement. You have to deal with a reputable franchisor who offers you training and support, as well as not bleed you drive in the negotiation process.
It is important you only purchase a coffee franchise from a franchisor you trust and believe to be credible. The best test you can do in this regard, is not to ask it itself, but some of his customers. Go to business owners who purchase franchises from the franchisor and asked their opinion. This is the closest you’re going to get to the truth.
Finally, you have to familiarize yourself with the different options that are available, when buying a coffee franchise. Besides the walk-in coffee shops, there are also coffee kiosks and rive thru businesses. Make sure you are aware of the different specialty coffee shops that are available to purchase through franchises.
There you have it — some simple facts you must consider first before buying one. If you do the necessary research, you should find yourself making a sound investment in one of the hottest and growing industries on the planet!
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Wednesday, May 27th, 2009
Franchise consultants are people who help broker deals between franchisers and potential franchise prospects. Franchise consultants help franchisers by referring qualified and appropriate franchise prospects.
How to Become A Franchise Consultant
Franchise consultants can be independent or work for a firm of business consultants who have trained the consultant, giving him access to their knowledge base and the help of their established and experienced attorneys, accountants, etc. The firm also provides them with leads during the initial period, creates a custom website, and provides business cards and other items needed for day-to-day activities and also access to all companies they represent. The consultants provide excellent training to help select the right business for the franchise prospect.
It is very easy to set up an office, since franchise, consultants can work full-time or part-time from their homes or from a small office, as they desire. Franchise consultants have to be motivated and organized and should have good communicating skills. It is a highly profitable business if done correctly. Franchisers pay $12,000 to $15,000 as a referral fee. If you are working as an affiliate broker of the firm that trained you, you get to keep 90% of the fee. Sometimes the firm works in collaboration with a financial institute and will get a referral fee if the franchise prospect is guided to approach them for financial assistance. The franchise consultant gets to keep 80% of the referral fee.
Franchise consultants have to be very careful and analyze the prospective franchise candidate, to understand his needs, his financial capital available, if the business offered is viable and if the candidate can make a success of it. They have to be realistic and make quick judgments and tell a candidate not to go for a business if he is not suitable for that business. Some franchise consultants get a bad reputation for recommending bad prospects to clients just to make a hefty commission for themselves. Try to be honest and remember that your primary duty is to help people get the right kind of business, not to make a profit selling loss making businesses.
The customers usually do not pay a fee to the franchise consultant; rather, the consultants are paid by the franchisers for giving good referrals. The candidates are questioned in length by the franchise consultants to determine what kind of business they are interested in and to determine what kind of business actually suits their profile. Thus, businesses realize the role of franchise consultants and pay good referral fees for each deal that is closed effectively.
You can be a franchise consultant by approaching a good, reputable firm as well as to be their franchise affiliate broker for the duration of your business. These are some tips for those who need to know how to become a franchise consultant.
There are firms that offer services as well as products to help run a successful business.
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Tuesday, May 26th, 2009
If Id had my act together I could have been a millionaire by now! Coffee shop franchises are big busy and I wish I had figured this out before someone else did. You have to act or else someone else will start without you! Someone else having the same idea can beat you to it if you dont act fast. You might have a great idea right now, but if you dont act youll never see results. There is no better time than now to act on your great ideas.
So you either love Starbucks Coffee or you hate it. It is the largest franchise out there and maybe the only people who hate them are the competition. This is not the case. There are a lot of individuals who hate Starbucks and arent in the coffee business. My father hates them because they dont support the troops and the war. He could care less that they serve a great brew and have the best coffee makers, he thinks that since they dont support the troops they shouldnt be in business. Usually Middle America doesnt support businesses that dont support the troops. I on the other hand disagree. I want to have lots of money, but dont want to work hard. Just because a company has lots of money doesnt mean they have to support something they dont want to support. Even if you are the biggest coffee franchise it doesnt mean you have the best values or are worth peoples money or time.
So think of your own franchise idea and get going for it. Could you let me know if you think of something good, I want buy some stock from you. Id like to enjoy my espresso and buy it from a better company.
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