Food on the go – Cafe2u International fact & figures

Cafe2u Mobile Coffee Franchise

Serving up: mobile Belaroma coffee and light refreshments

Facts and Figures

Franchise fee: between $104,900+ GST and $107,600 +GST (depending on options available).

Franchise fee: working capital: $7000 minimum, includes stock and supplies

Is this a turnkey operation? Yes

Royalty fee: in the first year a fixed weekly amount $130 + GST; second year a fixed weekly amount of $145 + GST; third year and ongoing a weekly amount of $160 + GST (capped) and CPI linked.

The marketing fee is $20.70 per week (CPI linked).

Term: five years and up to two renewals of five years each

Renewal fee: $550 plus GST for a second five years (legal costs), $5500 plus GST for third term

Lease: not applicable.

Operating hours: generally from 7am to 1pm

Average customer spend: $5.50

What does the franchisee get for the royalty and marketing levies? The franchise fee covers management assistance and operational services including maintenance and development of the system, event co-ordination and allocation (half with franchisee's marketing fund), ongoing training and field support, brand support, product development, buying power and strict quality control standards.

The marketing levy includes national advertising and media (placement and production), public relations, point of sale material, sales materials/collateral, website maintenance and search engine optimisation (SEO) maximisation and event co-ordination and procurement (half with Cafe2U).

The $1000 plus GST training fee is included in the initial franchise purchase price which allows for three days classroom style training and nine days in-field training.

With 75 mobile franchises in the system in Australia and 45 in the UK the target for the calendar year 2009 is 170 - with 105 of those in Australia.

How much food preparation is done on site? None. The only food sold is pre-prepared and pre-packaged but hot and cold beverages are prepared under strict guidelines.

Many franchisees use a Frequent Fluid loyalty card system but this is up to the discretion of each individual franchisee.

This article appears courtesy of Franchising Magazine