Coffee Franchise Questions
Seattle Drip Coffee Company’s franchise system offers franchisees a proven plan for owning and operating your own business. But a coffee franchise isn’t right for everyone. Here are some frequently asked questions about Seattle Drip’s franchise program.
Frequent Questions about Coffee Franchising:
Q. What kind of experience do I need to be a Seattle Drip Franchisee?
A: Experience in management/ownership, foodservice, retail, marketing or other related areas are indeed helpful, but not absolutely necessary. Some of our most profitable franchisees got started on dedication, enthusiasm and a true love of coffee and people.
Q: What is franchising?
A: A method of distributing products or services through a proven concept. An initial investment is required of the franchisee paid to the franchisor, who grants the franchisee the right to utilize his trademarks and trade name.
Q: Is a coffee franchise right for me?
A: If you desire to join our team as a strategic partner and embrace our mission statement of “Serving People Thru Coffee!” then there may be a place for you in franchising. The concept of franchising allows individuals to own a business for themselves, but not by themselves. Before you invest, investigate! Be sure that you understand the franchise model and that it is one with which you agree. A priority for success in a franchise is to follow the proven concept and programs. You don’t have to re-invent the wheel!
Q: What can a franchise do for me that I cannot do for myself?
A: A franchise is already a functioning business system. As a franchisee you can step into an already established concept, with much less risk for failure. Most importantly, it provides you with brand recognition and expertise.
Q: What should I consider before buying a franchise?
A: There are a lot of factors that you should consider while researching to purchase for a franchise: the type of experience required in the business, a complete description of the business, the track record of the franchisor, how other franchisees in the same system are doing, what is the total cost to get into the franchise, the terms and conditions of the franchise contract, the financial condition of the company and its system.
Financial Requirements for Franchising
Q: Is there a minimum store requirement?
Q: What are the minimum financial requirements?
A: Seattle Drip franchisees are required to meet the company’s liquidity and net worth requirements per location. This information will be reviewed in conjunction with your complete financial data to determine compatibility to pursue a Seattle Drip location.
Q: What is the average total investment for a Seattle Drip Coffee Franchise?
A: Seattle Drip has two development options: Land Ownership and Land Lease. You can expect the average investment range between $125,000 or higher, depending on whether the location is a drive-thru, cafe, or hospital location and whether ground lease or purchase. These figures include the building, beginning inventory, equipment, franchise fee and the land and site development costs, where applicable. Land and site development costs are the biggest variables.
Q: What is the franchise fee and royalty?
A: $20,000 franchise fee and royalties are based on store performance paid monthly no later than the 20th of the month.
Q: Does Seattle Drip offer financing?
A: No. We do not offer financing. We provide helpful tools that will assist you in your business plan preparation to secure financing.
Franchise Operations and Qualification Criteria
Q: Does Seattle Drip require franchise owners to be operators?
A: No. We look to attract the best franchisees for our system, our customers and our communities. However, owners do not need to run the day-to-day operations but must choose to hire qualified general managers to fill that role.
Q: What is in the Seattle Drip Operations Manual?
A: The Operations Manual contains all the approved personnel procedures, purchasing and control techniques, and all the other necessary programs and systems to operate a Seattle Drip Franchise.
Q: What are the typical steps toward owning a Seattle Drip store?
A: Detailed steps to becoming a Seattle Drip Franchisee are provided to qualified candidates. Basic steps include:
- Prequalification via completed qualification report
- UFOC (Uniform Franchise Offering Circular) Review, QandA and Confidentiality Agreement
- $10,000 Development Fee that applies toward the $20,000 Franchise Fee
- Signed Franchise Agreement and payment of the Franchise Fee balance
- Site Review and Approval
- Site Construction
- Management/Staff Training
- Grand Opening!
- Ongoing Support
Q: What are the Franchisee Qualification Criteria?
A: Below are just some of our Franchisee Qualification Criteria:
- Financially qualified (liquidity and net worth).
- Must be able to make a decision within 60-90 days after initial contact.
- Geography matches: the candidate is willing to operate in our target markets.
- Match with Seattle Drip Coffee Company’s Mission/Values/Philosophy.
- Background investigation proves acceptable.
- U.S. Citizen/Greencard.
- Must be committed to operate under a franchise license agreement.