First things first… what is a franchise?
You’ve likely heard of the term franchise before but may be unclear about what this entails. Well, some of the largest companies in the world operate under a franchise model. We’re talking about your McDonald’s, Starbucks, Domino’s & Subways of the world.
So, let’s break down this ‘franchise’ term by definition: “A franchise is a type of license that grants a franchisee access to a franchisor’s proprietary business knowledge, processes, and trademarks, thus allowing the franchisee to sell a product or service under the franchisor’s business name.”
In the case of Coffee-Bike, we are the franchisor (creator of business trademark, business model etc.), any prospective entrepreneurs that would like to operate under the Coffee-Bike trademark (if they fit our requirements) will pay a ‘franchise fee’ and become a franchisee operating under the Coffee-Bike trademark. We hope that makes sense! In short, the franchisor is the business owner, franchisees are individuals who operate under the franchisor’s trademark.
Now, some franchises can differ slightly in their operating terms but in general you will witness unison across all stores / services. Take McDonald’s for example, each store is being operated by a separate franchisee under the brand trademark ‘McDonald’s’ licensed to them by a franchisor. But you will not notice much difference between the stores i.e. Menu’s, pricing, décor, uniforms etc. This is so important in establishing a brand identity and a loyal customer base across different regions.
For example, you won’t see McDonald’s serving a Sunday Roast to its customers any time soon… Why? Because when a franchisee signs a contract to operate under a franchisor, they must follow certain rules & regulations. Although this can perhaps sound restrictive, it’s actually to the benefit of the franchisee. Starbucks, Dominos, McDonalds etc. have a very successful business model developed over many years which doesn’t require drastic changes.
Why the Coffee-Bike franchise?
Now we’ve taken some large-scale examples above, as these companies generate huge revenues – but crucially, require massive investment to grant licenses. Starbucks, for example, will require over £1m from a franchisee to open their store and operate under Starbuck’s trademark… this is obviously extremely unrealistic for the average UK resident.
But what if there was an alternative? A franchise that still offers a strong brand, unrivalled support, business expertise, and an effective supply chain but for a fraction of the price. Coffee-Bike offers just that…. and is a driving factor behind our franchise exploding into the UK market within the past 3 years (despite the pandemic).
Coffee-Bike started in Germany in 2011 and has been growing exponentially over the past decade, expanding into 13 countries with over 250 franchisees, we are now Europe’s leading & fastest growing mobile coffee franchise. What are the driving factors behind our growth?
Very attractive profit margins: Coffee offers one of the highest profit margins in any industry… with roughly 50% revenue being turned into profit! If you’re new to business, this is extremely high. Generally, a 20% profit margin is considered good (of course this differs between industries). However, a high profit margin is irrelevant if a franchisee isn’t generating a solid revenue. Many of our franchisees turn over £10,000+ a month, with roughly 50% of this coming as profit. This number is an average, others turn over far more. (We have seen franchisees turn over £26,000 in a single month.)
Low investment: As we’ve mentioned, Starbucks will require £1m from you to become a franchisee… other coffee stores (less reputable than Starbucks) will still require upwards of £100,000… Coffee-Bike requires just a fraction of this price. With the price of the Coffee-Bike starting at just £12,490, you won’t find a better value alternative in the market!
Mobility & Flexibility: Going back to the example of Starbucks as they are in the coffee industry… this franchise operates ‘fixed stores.’ This has some dangers attached with it… you may not have the expected footfall… you’re unable to ‘poach’ loyal customers away from other coffee stores… With Coffee-Bike’s mobility, you can supply the demand wherever it may be! This in general has less risk attached to it…
Expert support: One of the main reasons entrepreneurs join a franchise is due to the level of support on offer. At Coffee-Bike, we pride ourselves on this support and are proud of helping some individuals with little business experience to flourish, becoming very successful entrepreneurs. Prior to launching a Coffee-Bike, our franchisees will visit our Head Office to undertake full & extensive training at the Coffee-Bike Academy! Following this, you will be appointed your own personal consultant providing daily support for all business matters, this could be setting goals, optimizing your business, setting prices, running promotions or any other queries!
Sustainability: Sustainability is at the forefront of all businesses now as they put extensive time and resources into developing their CSR (Corporate Social Responsibility). Environmentally, there is pressure on every business to be more ‘green’ – Coffee-Bike has been ahead of the game. Our bikes are fully sustainable for up to 18 hours, our cups fully biodegradable whilst we ONLY use coffee beans with organic certifications.
If you’re interested in turning your dream into a reality, then we’d first ask you to download our brochure by filling in a few details. Simply click ‘Get Started Now’ below to do so (Don’t worry… we won’t be hounding you 24/7 on the phones). Once you’ve given this the read over and is a business opportunity you’d like to pursue, then we’d like to invite you to join a LIVE discovery webinar which will cover the topics below:
1.) Coffee-Bike History
2.) The Coffee-Bike in action
3.) Investment details & ROI
4.) Revenue Sources
Plus, there will be time for a Q&A.
If none of the available upcoming dates / times work for you, then you can schedule a quick 30-minute call with our Sales Manager who will take any questions and provide all the key information surrounding our franchise.
We look forward to hearing from you soon.
The Coffee-Bike Team