| Q: |
Is Caffino exclusively a franchisor, or does Caffino own and operate coffee bars? |
| A: |
We currently operate 7 company-owned coffee bars and we plan to add more. You can see our audited financials in the UFOC. |
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| Q: |
Does Caffino use area developers? |
| A: |
No. We are interested in opening coffee bars - not selling territories. Our experience is that multi-unit franchisees who act aggressively to open coffee bars can accomplish the same thing (territorial exclusivity) by virtue of the geographic exclusivity that we grant around open stores. |
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| Q: |
Is it a requirement that a franchisee be an owner-operator? |
| A: |
No, but in the event of an absentee owner or multi-unit franchisee we must be convinced that the franchisee has sufficient capital and management capability to maintain the high level of quality in operations and customer service that we require. Additionally, it is important to us that actual day-to-day general manager(s) have an equity interest in the coffee bars. |
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| Q: |
What is the franchisee fee? |
| A: |
We encourage multi-unit franchisees, so our franchise fee is tiered, based on the number of franchises owned: $25,000 for the first, $15,000 for the second, and $10,000 for the third and beyond. |
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| Q: |
What is the royalty? |
| A: |
5% of gross sales. |
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| Q: |
What is the total cost to open a Caffino? |
| A: |
The typical range is $268,000 to $484,000, which includes the franchise fee, training, grand opening, working capital, store and site construction, etc. Our UFOC details the line item breakdown. |
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| Q: |
How much cash do I need to open a Caffino coffee bar, and can you finance the rest? |
| A: |
You should plan to have at least $100,000 cash available, presuming that you will be able to finance the rest. While Caffino does not finance directly, we are very active in arranging various types of financing for our franchisees. As part of the Caffino franchise process, we will jointly investigate the viability of various sources and financing structures appropriate to your planned number of Caffino coffee bars. |
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| Q: |
How soon can I be in business? |
| A: |
The greatest variable that affects this is the availability of real estate in your targeted market, as well as the permitting, planning, and zoning environment. It can range from a few months to over a year, depending on the market. |
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| Q: |
There are many coffee franchise concepts in the market. Why should I choose Caffino? |
| A: |
We're excited about the specialty coffee industry and we think there are many great companies with which you can work. We encourage you to meet them all, and make the best choice for you. We'll even make introductions for you - this is a major commitment and we want you to feel absolutely comfortable and confident about your decision to join us as we expand across the country. |
