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Cafe2U named best value franchise

Sarah Stowe

The Cafe2U mobile coffee franchise has been named best value franchise system by Australian Financial Review Smart Investor Magazine in the December 2009 issue.

In the $50,000 to $150,000 price range, it emerged as one of two of the best value systems in the market out of more than 1,000 contenders.

“I find it very encouraging because it clearly states that when business professionals look at it [the Cafe2U franchise] they value it highly and they see that it represents good value. I think that that is very encouraging, particularly during a very interesting year where people have been talking about a recession,” managing director, Andy Simpkin, told Franchising.

Cafe2U is the largest mobile coffee franchise in the world, with 92 franchises in Australia and 51 throughout the United Kingdom.

A key factor behind its ranking by AFR Smart Investor was its Acceleration Package, which has fast-tracked 15 new franchisees since its introduction in March this year. New franchisees are provided with an income guarantee for the first two weeks of business, with a daily business schedule constructed with the assistance of the franchisee’s allocated Franchisee Development Manager.

According to Simpkin, the AFR considered return on investment and franchisee success when deciding which franchises were the best value, and guaranteeing return on investment is something that Cafe2U prides itself on.

“When you look at return on investment, which is the simplest way to judge whether you should go into a business or not, the return on investment is very quick … You often get complete return on investment in a year, comfortably, and we guarantee franchisee income from day one,” he said.

Since the launch of the Acceleration Package, Cafe2U has launched six new franchises in Perth, four in NSW, three in Melbourne, one in Adelaide and one in Canberra.