Cafe2U offers franchisees the ability to become part of the growing coffee industry without the hassles of landlords, staff or rent.
Number of franchisees:
There are 150 overall; 100 in Australia, 50 in the UK and one in the Republic of Ireland.
How many multi-units:
Four in Australia.
Total franchise investment:
$125,000 + GST.
Set-up costs inc fit out/stock:
There is no additional cost; all set up costs are included in the initial franchise investment fee.
Vehicle loans:
The price of the Cafe2U Mercedez Benz Vito van is included in the total purchase price of $125,000 + GST.
Working capital required:
We recommend about $2000.
Ongoing marketing and royalty fees:
There is a weekly franchising fee of $130 and a marketing fund contribution of $21.42 per week.
Training costs:
Zero. Barista, business and on-road training are included as part of Cafe2U’s exclusive Acceleration Package.
Any franchisor funding available:
Cafe2U has a well established relationship with Commonwealth Bank Australia who are able to provide approved Cafe2U franchise partners with financial assistance.
Average time it takes from initial enquiry to franchise opening:
12 weeks. This period includes ordering and building of the franchise partner’s custom Cafe2U Mercedes Vito van.
Term of agreement:
Five years with one option to renew for a further five years.
Lease:
None.
Main method of franchisor/franchisee communication:
Monthly phone calls and quarterly visits from the franchise development manager. Monthly e-letters, email correspondence and phone calls are sent and made in-between these visits; there are an annual national conference and both annual state and regional meetings for franchisees.
Frequency of BDM visits:
Each franchise partner is allocated their own franchise development manager who spends two weeks on the road with the franchisee during the launch period. After this, visits are quarterly.
Do you have a franchise advisory council?
Yes. Cafe2U has a franchise partner-elected franchise advisory council which has both a metropolitan and regional representative from each state/territory (including ACT).
Lead generation – is it centralised or local?
Leads are generated from a wide range of sources. They are all processed centrally through Cafe2U head office.
What and when was your last investment in back office reporting?
Cafe2U does not provide back office support to its franchise partners.
Percentage of franchisees up for renewal who have renewed since November 2008:
Two have not been renewed during this period, but the territories were resold.
The number of closures since November 2008:
None.
Frequency of franchisee profitability reporting:
Cafe2U does not charge a sales turnover royalty, and therefore does not require franchisees’ financial information to be provided to the franchisor.
Average franchise turnover July 2008 to July 2009:
As financial details are not collected by the franchisor we can only estimate from survey collection – about $150,000.
Growth plans for 2010 to 11:
For Australia, further development of regional areas and increased concentration in existing territories with multi-unit operations. On the international front, increased growth for the brand in the UK; launching Cafe2U USA and New Zealand.