Tuesday, July 8, 2008

Coffee and Tea Franchises

A coffee and tea franchise is a popular option for those that have seen the tremendous successes of other coffee and tea businesses around the world. Add to that success, the environment for virtual communications via the Internet, and coffee and tea franchises should continue to be big money makers. Whether serving commuters on their way to work, or the bookworm artist, these businesses have always been in demand. The famous coffee shop names heard around the world attest to the fact that people love to go to shops to drink coffee or tea as opposed to brewing it themselves at home. "Drink waters out of thine own cistern, and running waters out of thine own well." (Proverbs 5:15)

An enterprise of this kind can offer a business entrepreneur a plethora of benefits. First is the ease with which funding is made available. Banks or credit unions will lend money for a start up coffee and tea franchise business well before lending money for a no name business venture. Coffee and tea franchises have established proven methods for a profitable business. Banks are inclined to believe the facts of a business's success, than that of fictitious projections. Another benefit to owning a business of this kind is the common national marketing element.

The franchise corporate office will advertise the name on behalf of all the franchisees. This is where a chunk of the coffee and tea franchise royalties are spent. The business will require monthly or quarterly royalty fees based on a percentage of revenue, but in the end it is worth the price paid. An already established business can help an entrepreneur see their reality of business ownership come true. Careful consideration must be paid to location. Some locations offer more traffic than others, so when seeking a business to be profitable, location is the name of the game.

Many of these businesses are located throughout suburban areas, in malls, or other shopping centers. The lone coffee and tea franchise on the side of the highway will probably not bring in much business, as coffee and tea franchises specialize in flavored or unique brands. When researching the demographics of an area, it is important to note that the younger generation is more apt to frequent the business rather than the elderly. While there are exceptions to every rule, coordinating the best efforts possible to make the enterprise a success is the goal.

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