So, you’re looking for a franchising opportunity that fits your personality and personal vision and passion. But wait. Where do you start? How can you find the perfect business to get started with if you don’t have the right information? That’s where I come in. And today I’m here to talk to you about an incredible opportunity for coffee lovers all around the country. I’m not talking about a small local coffee shop that is ordinary and plain. I’m talking about a coffee establishment that will have your customers craving to come back over and over again. Today, we will take a look at the Caribou Coffee establishment and see what their franchise business has to offer you. While coffee may not be for everyone (although, I’ll never imagine how some people function without it), there is more than just coffee offered at Cariou Coffee, so you can feel rest assured that you will have a little something for everyone. Let’s dive in and take a look at how this franchise business measures up to your needs.
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A Quick Pick Me Up With Caribou Coffee
Coffee makes the world go round. At least it does or me. So when a great coffee establishment comes to town, the world goes crazy with excitement. Or wait; maybe that’s just me again. Either way, coffee is life. With Caribou Coffee, they provide excellent coffee with only the highest quality beans. But hey, if coffee isn’t your thing, they have awesome other signature drinks as well. Everything from their frozen hot chocolate to their yogurt smoothies and even specialty drinks for kids is made to perfection. They also offer perks when you sign up and start purchasing their products. These perk points will help you earn free drinks, birthday treats, and sneak peaks of new products before anyone else. It’s no wonder as to why the world is falling in love with Caribou. But is their franchise business opportunity just as well-loved? With their franchise business, you have the chance to get in on this caffeinated (and non-caffeinated, of course) goodness and treat your community with amazing tasting drinks that are sure to start their day off right. Let’s review some of the details to find out how this opportunity checks out.
The Franchising Opportunity
Franchising is an excellent opportunity for aspiring entrepreneurs to grow a business that already has established a reputation. The only thing is, you want to make sure that you are choosing the best business that will fit into your life and offer what you need and desire. With Caribou Coffee, this may be a pretty decent opportunity for you to dive into if you are passionate about coffee; which I don’t know about you, but I totally am! We first take a look at the growth of the franchise outlets over the years to see if this business is a popular choice and if it has had an increase or decrease in growth over the past few years. In 2011, Caribou Coffee had 74 running outlets for their company. That number then grew to 133 by the end of 2017. This shows us that there is a definite level of growth with this business. But where does it lie with the turnover rate? When we check into the turnover rate for a company, we want to find out how often franchise agreements were terminated or not renewed. We then take that total and divide it by the total number of outlets that are currently operating. That will give us the turnover rate. You want to see a low number because if it’s too high, that can indicate the poor health of the company. Caribou Coffee has a decently low turnover rate of 4.57, so depending on reasoning, this rate is pretty good.
So now that we have an understanding of the popularity of this franchise business and some general understanding of its health, we need to take a look at the requirements of the business. First, we’ll look at the cost. With Caribou Coffee, the franchise fee is currently sitting at $12,500. This is actually extremely low as compared to other establishments. However, when we look at the total investment, it tends to get pretty high. By the time everything is said and done, you will end up paying anywhere from $377,000 to $815,000. That’s a pretty big jump from $12,500. You also have the responsibility of paying an ongoing royalty fee of 6%. These fees will be based on your gross revenue in sales. You will be paying this fee for the entire 5 years of your initial agreement. You can then choose to renew your business for another 5 years, but there is no recorded data on the cost of renewal. These terms for agreement are decently low compared to what the competition requires, so that would definitely be an advantage.
With Caribou Coffee, there truly aren’t many perks to franchising this business. There is no recorded level of financial transparency. Which means that the company will not provide you with any sales information, location data, or anything else related to franchise finances. The company also does not offer territory rights to your franchise location. And with all the money that you will be shelling out, you’d better make sure that this franchise is the one for you because they offer no refunds, no financing, and no discounts. Ok, so what do they offer? Well, they will provide you with in-class and on the job training so that you understand your full responsibilities and know how to run the business. They also provide you with computer and technical support. So at least you get some type of perks.
All Good Things Come to an End
Including this review. So, we’ve come to the end and hopefully, by now you are a little less confused about what Caribou Coffee is and what they have to offer you when it comes to franchising. Whether or not you choose this franchise opportunity is solely up to you. There are definitely some advantages to the business, but unfortunately, there are also some negatives about this company. There will always be something negative about a company. Because let’s face it, nothing is perfect. However, there will always be a perfect fit for you personally and professionally when it comes to business. You just have to do your research and follow not only your heart but your brain as well. Give yourself the best opportunity and choose a franchise that will serve you with everything you have ever desired!