Do you want to open a Coffee Cafe business by buying Caffe Bene franchise? If YES, here is how much it cost to open Caffe Bene franchise successfully. If you are looking towards opening a Caffe Bene Franchise, it will be nice for you to have a preview of what the company represents before going ahead to make enquiries about the total cost of opening the franchise in your location.

Caffe Bene was founded in 2008 and they began franchising in 2008, about 12 years ago. Sunkwon Kim, is the Founder and CEO of the company and the company has her corporate head office at 1430 Broadway, #1503 New York, NY 10018, USA. Currently, they have about 1433 franchise units across the globe.

Caffe Bene is the global business specialized in coffee which started as a domestic coffee franchise business, and goes beyond the domestic territory to rapidly grow into the worldwide coffee specialty shops as well as the coffee bean and RTD coffee market.

They started the franchise business in April 2008, and broke through the 300th shop in the shortest time in the industry. Caffe Bene pursues free sensitivity space which allows customers to enjoy the original sensitivity of fresh coffee with rich flavor and fragrance along with the desserts which further enriches the coffee flavor.

Caffe Bene provides pleasantness of platform business and shares success with the franchise business partners through realization of brand values and differentiated space values. Caffe Bene pursues growth opportunities for employees and business success with the aim at a company where they can share employees’ creative thinking, passion and challenge. Here are areas where you are expected to spend money and the cost associated with it;

Financial Investment Required to Open a Caffe Bene Franchise

1. Initial Investment Range: $414,500 – $899,600

2. Franchise Fee: $35,000

3. Royalty Fee: 6.9 percent of Gross Sales

And the Due Date for this fee is Paid by electronic funds transfer every Friday for the preceding Reporting Period. The amount of the Royalty Fee for any renewal term will be that provided in the Franchise Agreement executed for such renewal term.

Please note that “Gross Revenues” include all revenues generated from the provision of any and all services and/or the sale of any and all products and, whether by the franchisee or a third-party provider, that relate to or arise from the Franchised Business. It does not include taxes collected from customers.

4. Local Advertising Spend, Local Marketing Fund, or Cooperative Advertising Contribution

At least 1 percent per calendar year and the Due Date: for this is Monthly. Please note that each local advertising Cooperative may elect to increase the monthly contribution if approved by a two-thirds majority of the members, and the minimum contribution is subject to adjustment by an amount not to exceed the increase in the CPI.

Centers owned by Caffe Bene and its affiliates are also members of their respective local Cooperative and each company-owned Center has the same voting rights as the franchised locations within the Cooperative. If the company-owned Centers comprise the majority of a given Cooperative, the maximum and minimum fees for that Cooperative will be consistent with the range stated in this Item 6.

  1. Liquidated Damages Under Area Development Agreement: This fee varies but the Due Date is Payable within 30 days of the termination of the Development Agreement.
  2. Audit Costs: All costs and expenses associated with the audit, reasonable accounting and legal costs.
  3. Indemnity: This fee will vary under the circumstances and the Due Date is As incurred.

Please note that you must reimburse Caffe Bene if it is held liable for claims arising out of your franchise operations.

  1. Insurance: Reimbursement of costs the franchisor’s out-of-pocket costs.
  2. Equipment, Supply, or Supplier Testing or Inspecting: Fee not to exceed the actual costs of inspecting and testing. (Due Date:  Due on receipt of invoice.)

Please note that This fee covers the cost of testing or inspecting equipment, supplies, or suppliers you propose.

  1. POS Hardware and Software: Depends upon vendor and products purchased. (Due Date:  Depends upon vendor and products purchased.)
  2. Attorneys’ Fees and Costs: Will vary under circumstances. (Due Date:  As incurred.)

Payable to Caffe Bene if it is forced to retain independent counsel and seek damages or injunctive relief to enforce the Franchise Agreement (whether or not suit is filed) or if Caffe Bene is required to defend your unsuccessful claim against it.

  1. Veteran Incentives: This is open for negotiation with the company.
  2. Term of Agreement and Renewal: The length of the initial franchise term is 5 years. If requirements are met, franchisees can renew for one additional term of 5 years.
  3. Financial Assistance: Caffe Bene has relationships with third-party sources which offer financing to cover the following: franchise fee, startup costs, equipment, inventory, accounts receivable, and payroll et al.

In Summary,

  • Initial Investment: $414,500 – $899,600
  • Ongoing Initial Franchise Fee: $35,000 – $35,000
  • Working Capital: $15,000 to $30,000
  • Ongoing Royalty Fee: 6.9%
  • Ad Royalty Fee: 3%.
Joy Nwokoro