New Coffee House Investment

It depends on a range of factors including the size of the location and landlord conditions, as a general guide store fitout, fixtures and equipment can cost between $380,000-$600,000 (plus GST), a new franchise fee of $50,000 plus GST (traditional store), $100,000 plus GST (Drive Thru) is payable together with a training fee of $13,750 plus GST and a project management fee (depending on the works required). However there are a range of other costs and payments for set-up including for initial stock and inventory, legal and accountants fees, insurance and bank guarantees, and you also need to provide for working capital and ongoing costs including rent, labour and utilities.

Established Coffee House Investment

Established coffee houses have the advantage of already being set up in a proven site with a loyal following. The selling price of an existing coffee house is set by the current franchisee, and like any existing business for sale will depend on numerous factors. You will also have to pay legal fees and for your own accounting and business advice.

Agreement term

This varies depending on the lease term. For new franchises this is usually between 5-10 years. For existing franchises this will depend on the term of the franchise you are buying.

Fees

Traditional

Ongoing franchise fee: 6% (plus GST) of gross sales per week (this includes a 4% Continuing Technical Assistance Fee and a 2% Continuing Trade Mark and License Fee).
Ongoing marketing contribution: 2% (plus GST) of gross sales per week.
Ongoing training contribution: $23 per week Plus GST

Drive Thrus

Ongoing franchise fee: 8% (plus GST) of gross sales per week (this includes 6% Continuing Technical Assistance Fee and a 2% Continuing Trade Mark and Licence Fee).
Ongoing marketing contribution: 2% (plus GST) of gross sales per week.
Ongoing training contribution: $23 per week Plus GST

Opening hours: Typically 7 days per week, with hours dependent upon individual locations.