Coffee Culture: likely legit or a FranWhack?

Nothing is certain in life and that goes for franchising, too.

Coffee Culture Café & Eatery sure looks like a winner. Very rich-looking, solid, many happy-smiling faces.

It is important to look past the flash, however. In the growth phase, who sells the offering says a lot about the credibility of the offering.

CJ Woodburn and Associates appears to be the 3rd party sales agent and lists the investment qualifications as:

“- Store hard costs start from $175,000 (this varies depending on size, conditions, landlord and location).
– Franchise Fee (10 years) $20,000.
– Royalty (weekly) 7%.
– Ad Fund (weekly) 2%.”

Weekly (not monthly) payments and no mention of head lease, equipment or product maximum margins.

When I asked a few central Ontario current, multi-year, coffee franchisees about the offering: Does it…

  1. look like a good deal  or
  2. is it what Richard Solomon defines as a FranWhack?

They were unanimous in their opinion.

Solomon’s The New Franchisor Scampaper in his Franchise Fraud series is good investment reading. The old bastard sums up:

If you think you can outsmart professional swindlers all by yourself, you really are not smarter than a fifth grader.

Don’t get me started who’s papering this… (ie. “special relationship” CSBFA-based franchise lender)

2 Responses to Coffee Culture: likely legit or a FranWhack?

  1. Carol Cross says:

    Always love to read Richard Solomon. I miss Seamus Muldoon who used to give me a big laugh. Richard is addicted to the TRUTH which he relates in an inimitable manner. There is only one Richard–and I forgive him because I think he is “the old bastard” who had me blocked from posting on Blue Mau Mau.

  2. Les Stewart says:

    Carol,

    Everything happens for a reason and silence often tells a great deal more than anyone prattling on. Hope you are well, Les

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