Thursday, April 21, 2011

Coffee News Franchise Review - The Coffee News Business Opportunity

Coffee News is a weekly publication that began back in 1988 in Manitoba, Canada. It was started by Jean Daum, an advertising expert, whose independent research led her to believe that people are more susceptible to advertising while they are eating. The concept is simple- a brief newspaper that is delivered free to coffee houses, restaurants, and motels. How brief? Well, Coffee News claims that it only takes 8 minutes to read and therefore, due to its brevity, people will read it from front to back. The paper focuses only on news that is entertaining and upbeat, including horoscopes, jokes, trivia, and therefore appeals to its readers. The theory is then that readers will read not only the features but also the advertisements.

Coffee News has been franchising since 1994 and startup costs for the new franchisee are estimated at just under $10,000. There is an $8,000 franchise fee and an ongoing royalty fee of $75 per week. There is no in-house financing available for the start-up costs or franchise fee. Exclusive territories are offered and the parent company looks for individuals with sales, advertising, and marketing experience. As a franchisee, you will need to sell advertising space in your publication. This is how revenue is generated.

The Coffee News franchise can be run out of your home and it does not need to be owner operated. However, approximately 98% of the current franchisees are owner operators. A 3-day training course is offered at the company headquarters in Bangor, Maine and a mentorship program is also available for new franchisees. A monthly newsletter is also distributed by the parent company which offers tips and strategies from other franchise owners.

If advertising sales is something that appeals to you, then you might find the Coffee News opportunity to suit your needs. However, if it does not, then you probably should search elsewhere for a business startup.

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