A coffee shop franchise, or a license…that is the question !

If you are thinking of opening a coffee business there are many considerations when picking your business model.

Ideally, you want to deploy a successful business model, so strongly consider the advantages of a coffee business franchise vs. licensing a brand.

Many would argue that franchises are expensive, too restricting, and that in many cases you end up paying hefty fees. However, a franchise can help with demographics, location, and the charter is largely a “baked in” model; however, the purchase of a franchise will not guarantee your success.

You may also consider licensing a successful coffee shop business brand. Licensing is often times far less expensive because the onus rest upon the entrepreneur that purchases the license to deploy his or her business.

Some of the most difficult aspects to building a coffee business is ‘branding” and keeping your cost down while mitigating your risk for start-up failure. Wile licensing will not insure your success, it may be a far lower barrier to entry. In addition, licensing a successful and recognizable brand may be far cheaper in terms of ongoing fees, and much less risky than trying to create a “successful” brand identity for yourself.

Ultimately you and your attorney will need to weigh the pro’s and con’s of each opportunity.

Just realize that there are two distinct opportunities: coffee shop brand licensing, or a coffee shop franchise.

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