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The process to open a cafe, write a cafe business plan, and prepare for all the daily operations to keep a cafe running smoothly is a long, ultimately satisfying project. Once you’ve opened your cafe and gotten it running with marketing strategies for cafes and unique cafe ideas, however, what’s next? What are your potential growth opportunities?
If you’re looking for the next step, a cafe franchise business plan is a great option. Learning how to franchise a cafe business will build on your cafe business knowledge and give you more to work with. It will draw from customer satisfaction and customer experience knowledge. Guest retention and customer retention strategies will be vital for your franchise success.
You’ll lean into everything you’ve learned about the cost to open a cafe, the types of cafes you can own, and general cafe management. Cafe regulations and menus for cafes will come into play. Cafe inventory management will be paramount. For anyone working at the cafe you own, you’ll have things to learn about keeping employees on as part of a franchise.
This BinWise blog post is your place to learn the steps of moving from a singular cafe business to a cafe franchise. Read on, and keep this blog saved for future reference when you’re ready to grow your business. The franchise process can be complicated, but these upcoming eight steps make it easier to follow.
What Is a Cafe Franchise Business Plan?
A cafe franchise business plan is a step above the standard business plan of a singular business. When you decide to franchise a business it comes with more legal requirements, paperwork, and business plans. Writing a cafe franchise business plan can help you get situated with all the new requirements you’ll need to meet to franchise your business.
How to Franchise a Cafe: 8 Key Tips
When you reach the point of wanting to franchise your cafe business, writing up a cafe franchise business plan will help ease the process. These eight key tips of franchising a cafe are major parts of the structure of a cafe franchise business plan. Follow along with these tips to make the franchise process a natural part of your business goals.
8. Analyze Your Franchise Potential
The first step of getting your cafe ready for franchising is checking out your franchise potential. Do your finances make this a feasible choice? Are you ready and organized with the paperwork? Has your cafe brought in the right numbers to expand to new locations? These are the questions you need to answer.
7. Create a Franchise Budget
Creating a franchise budget at the beginning of creating your cafe franchise business plan will give you a head start. Check out the costs for all your franchise license needs and marketing requirements to make sure you’re ready. This goes into the cost of opening a cafe.
6. Prepare Your Franchise Disclosure Document (FDD)
Your franchise disclosure document or FDD is the selling sheet you present to potential franchise owners. It’s the place for an extensive explanation of how the franchisor and franchisee relationship will work, and what franchisees can expect.
5. Prepare Your Franchise Operations Manual
Preparing your franchise operations manual goes hand-in-hand with preparing your franchise disclosure document. The operations manual is your place to explain how every part of the cafe works, so that franchisees have a full game plan.
4. Review Your Trademarks and Intellectual Property
Part of franchising your cafe means giving other folks permission to use your brand and all related intellectual property. To prepare for that, make sure you have your logos and any specific intellectual property trademarked, to avoid issues down the road.
3. Establish a Franchise Company In the Eyes of the Law
While you’re already set up with a general business license, you need another one for a franchise business. BinWise isn’t a legal advisor and we can’t tell you exactly what you’ll need for your location. You will, however, need a new level of business licensing to be set as a franchise. Check out your local government to find what you need.
2. Issue and Register Your FDD
Once you have all your papers in order and you’re legally set up to be a franchise cafe, it’s time to issue and register your FDD. A lawyer will come in handy for getting your documents where they need to go. From there, follow your local guidelines to get your FDD where it needs to go.
1. Develop Your Franchise Sales Strategy
Developing your franchise sales strategy is something you’ll likely think about while you work through every process on this list. How will you get the word out to potential franchisees? From networking in the right spaces to meeting people organically, selling your franchise pitch is the peak of the work you’ll do to prepare your cafe for franchising.
Frequently Asked Questions About Franchising Cafes
Creating a cafe franchise business plan and walking through all the steps is a lot, even for seasoned cafe owners. The world of franchise businesses is something that takes a lot of knowledge and research to get everything right. Our answers to these frequently asked questions will give some background, and some motivation to franchise your cafe.
"Key Takeaway: Learning how to franchise a cafe business will build on your cafe business knowledge and give you more to work with."
How Profitable Is a Cafe Franchise?
The profit margin of an average cafe franchise is between 2.5% to 6.8% of gross sales, depending on your source. You can expect to make something within that range, most likely ranging more toward the lower percentages. Overall, a cafe is a fairly profitable business model. You can increase profits through menu engineering and wine portion control.
Can a Cafe Be a Franchise?
Yes, a cafe can be a franchise. Many cafes never expand into the franchise area of running a business, but the ones that do are primarily successful. This is because franchising comes after a great deal of time of already operating successfully. Franchising can seem daunting, but once your business is ready, it’s a great next step to continue your brand into more locations.
Is Starbucks a Franchise?
No, technically Starbucks isn’t a franchise. Starbucks does have a sort of franchise loophole, where they will license their stores to private owners and managers. It’s different from franchising, and done on a smaller scale within the Starbucks business.
How Do I Set Up a Business Plan for a Cafe?
To set up a business plan for a cafe, follow a general business plan structure of mapping what your business goals are and what you need to make it happen. It’s similar to any other restaurant business plan. You’ll need to plan for finances, inventory management, and business structure. Those steps will get you toward a successful cafe business.
Franchising Your Cafe Business: Grow Your Cafe to Franchises and Beyond
A cafe franchise business plan can help you grow your cafe beyond the confines of your first location, or even your first few locations. Starting a cafe often starts with a small space and big dreams that blend together into a beautiful space. When it’s time to grow, you can take those dreams and plans and make them into something more with a franchise.
Wherever you’re at in the journey of owning a cafe, from the early days to franchising, reach out to BinWise, BlueCart, and Revolution Ordering. We can help you along with everything from inventory management to stock organization and ordering.
The BinWise Pro inventory program, paired with the BinScan mobile app, gives you peace of mind when you take inventory. BlueCart’s order management software simplifies your order management system. Revolution’s ordering software are designed to work with businesses with more than one location. It’s perfect once you’ve franchised your cafe business.