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The Coffee Club Franchising group - solutions franchising group

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FaQs<br />

How do I obtain financing?<br />

If required, <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> can assist by putting<br />

you in touch with accredited financial institutions<br />

who are familiar with our systems and brand.<br />

Similarly to buying a house, you will need a<br />

deposit and sufficient security.<br />

What will be my return on investment?<br />

This relies on the growth and profitability of the<br />

business under your ownership. We would hope<br />

that your investment pays you handsome returns;<br />

however, we cannot predict or guarantee what<br />

this return may be.<br />

What is the length of my Franchise<br />

Agreement?<br />

This initial term of the franchise Agreement will<br />

match the term of your lease.<br />

How soon after approval can I expect to<br />

open my store?<br />

location is the biggest determining factor, and site<br />

selection requires tremendous commitment, talent<br />

and expertise. After site identification is approved<br />

by <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong>, lease negotiation, design,<br />

layout and construction comes next. This process<br />

can take six to twelve months.<br />

© <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> Pty Ltd as Trustee for <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> Unit Trust 2011<br />

®* Registered in Australia<br />

Will I be able to sell the business in the<br />

future?<br />

Yes. <strong>The</strong> franchise is yours to sell under certain<br />

guidelines and conditions. <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> will<br />

need to give approval on the selection of new<br />

franchisees in the same way that you would<br />

be approved. <strong>The</strong> purchaser will continue the<br />

operation of the franchise.<br />

Is investing in a Franchise risk-free?<br />

<strong>The</strong> risk involved in participating in any reputable<br />

franchise System should be significantly less<br />

than the risk involved in proceeding in a similar<br />

business on your own account. Any retail<br />

business involves risk and <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong><br />

cannot guarantee the sales of a particular café or<br />

its profitability.<br />

Should I seek independent advice before<br />

entering <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong>’s Franchise<br />

System?<br />

<strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> requires that its franchisees<br />

obtain competent legal advice before entering<br />

into the franchise documentation to ensure that<br />

franchisees fully understand their obligations.<br />

In addition it is recommended by <strong>The</strong> <strong>Coffee</strong><br />

<strong>Club</strong> that franchisees retain the services of a<br />

competent accountant and commercial business<br />

advisor.<br />

Do I need prior experience in the retail coffee<br />

business?<br />

No. Previous experience managing a retail<br />

business is a great advantage and the preferred<br />

way to becoming a franchisee with <strong>The</strong> <strong>Coffee</strong><br />

<strong>Club</strong>.<br />

however, our extensive training program and years<br />

of experience will help you operate your own store.<br />

Is there a standardised procedure that I am<br />

required to follow?<br />

Yes, but our procedures are simple. <strong>The</strong> <strong>Coffee</strong><br />

<strong>Club</strong>’s systems are for diversified matters such<br />

as reporting, insurance, accounting practices,<br />

purchasing, hiring and training new staff, cost<br />

control, marketing, merchandising and other<br />

essential functions that contribute to the efficient<br />

operation of your store.<br />

Why do you charge an initial Franchise fee<br />

and project management fee?<br />

<strong>The</strong> initial franchise and training fee is in<br />

consideration of <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> establishing the<br />

business and in particular, compensates for:<br />

• Selection of a location and lease terms using<br />

the negotiating strength of <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong><br />

• Supervision by <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong> of the<br />

complete design, construction and fit-out of the<br />

café<br />

• Provision of training and assistance prior to and<br />

at the initial opening of the café<br />

• <strong>The</strong> initial right to use <strong>The</strong> <strong>Coffee</strong> <strong>Club</strong>’s<br />

intellectual property<br />

What services do the ongoing Franchise fees<br />

cover?<br />

<strong>The</strong>se fees entitle you to continue to be part of <strong>The</strong><br />

<strong>Coffee</strong> <strong>Club</strong> system, as well as benefits from the<br />

following services:<br />

• Supplier selection and volume buying<br />

arrangements<br />

• Standardised accounting and reporting<br />

• Research of new and varied products<br />

• Staff training and management assistance<br />

<strong>The</strong> franchise fee (6 percent) is set as a percentage of<br />

your weekly sales so that we only benefit as you do.

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