Coffee World Fees and Investment Requirements
Coffee World uses a standard international franchise fee structure by charging an upfront franchise fee based on the number of stores a franchisee is considering opening, monthly royalty payments equal to a percentage of net sales, and marketing fees as a percentage of sales that are either managed by the franchisee or by the corporate office for countries where Coffee World has a corporate presence.
Franchise fees:
The franchise fee is a one time payment made by the franchisee when the franchise is granted. The initial franchise fee covers the cost of approving a location, designing the store, supporting with supply chain management and import requirements, and training the management of the franchisee.
Royalty fees:
Royalty fees, a percentage of net monthly sales, are paid monthly by the Franchisee during the entire term of the agreement.
Marketing fees:
Marketing fees are used to market and advertise the franchise system. An advertising fee is based upon a percentage of net sales. Under a Master Franchise agreement the Franchisee is responsible for managing the national advertising fund.
A Global Franchise Architects Brand
Based in Geneva (Switzerland), Global Franchise Architects (GFA) specializes in building, operating, and franchising a select portfolio of specialty food service brands.
Over the past decade, GFA has built a proven track record in successfully developing brands and adapting them to local markets in several countries.
GFA brands are built to have a universal appeal, offer quality at value, and cater to a wide range of customers with different cultures, ages, and/or background.
GFA is fanatical about the customer experience, and has a highly developed Quality Management System that focuses on innovation to constantly improve the customer experience at any of its stores.
GFA has a world class infrastructure to support its international franchisees, as it clearly understands its success is based on the success of its partners.
| Coffee World (International) |
|
| Franchise Fees |
US $20,000 per store |
| Equipment |
US $15,000 per store |
| Construction, furniture and fixtures |
US $30,000 to US $75,000 depending on size of store |
| Total Investment |
US $65,000 to to US $110,000 |
| Royalty Fees |
6% of net sales paid monthly |
| Coffee World (Thailand) |
|
| Franchise Fees |
THB 600,000 per store |
| Equipment |
THB 600,000 per store |
| Construction, furniture and fixtures |
THB 600,000 per store |
| Total Investment |
THB 2,000,000 |
| Royalty Fees |
6% of net sales paid monthly |
| Marketing Fees |
2% of net sales for National Marketing
2% for local store marketing |
| Coffee World (India) |
|
| Franchise Fees |
Rs. 7,00,000 per store |
| Equipment |
Rs. 7,00,000 per store |
| Construction, furniture and fixtures |
Rs. 20,00,000 - 30,00,000 per store |
| Total Investment |
Rs. 34,00,000 - 44,00,000 |
| Royalty Fees |
6% on Monthly Net Sales |
| Marketing Fees |
4% on Monthly Net Sales |
Note
* Coffee World will provide you with a full list of equipment required to open a shop, and the equipment can be purchased locally.
* The cost of decoration and furniture will vary based upon size and place of location.
* In India, Service Tax is as applicable.
