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Below is an in-depth analysis and side-by-side comparison of Bad Ass Coffee Company vs Van Houtte including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $304,500 - $620,000 | $250,000 - $300,000 |
Franchise Fee | $35,000 | $27,500 |
Royalty Fee | 6% | 5% |
Advertising Fee | 2% | - |
Year Founded | 1991 | 1919 |
Year Franchised | 1998 | 1983 |
Term Of Agreement | 5 years | 10 years |
Term Of Agreement | 5 years | 10 years |
Renewal Fee | $2.5K | - |
Business Experience Requirements |
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Experience | - | - |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | No/No |
Start-up Costs | No/Yes | No/No |
Equipment | No/Yes | No/No |
Inventory | No/Yes | No/No |
Receivables | No/No | No/No |
Payroll | No/No | No/No |
Training & Support |
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Training | - | - |
Support | Newsletter, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Meetings, Grand opening, Field operations/evaluations, Purchasing cooperatives |
Marketing | Co-op advertising, Ad slicks, Regional advertising | Co-op advertising, Regional advertising |
Operations |
International franchisees required to buy multiple units/master licenses; 50% of all franchisees own more than one unit Number of employees needed to run franchised unit: 10 Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) |
5% of all franchisees own more than one unit
Absentee ownership of franchise is NOT allowed. (100% of current franchisees are owner/operators) |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | No |
International Expansion | Yes | Yes |
Albert-Louis Van Houtte, a French immigrant, set up his first grocery store in Montreal in 1919. Van Houtte stocked the store with specialty products from Europe, including coffee. Each day he would roast small batches of coffee in the back of his shop, and soon Van Houtte had built up a reputation in Montreal for selling quality coffee. In the more than 80 years since its founder began roasting European coffees, A.L. Van Houtte Cafe-Bistro has grown beyond Montreal and has expanded its menu. Today, each cafe-bistro serves a variety of coffee and espresso drinks, as well as teas, soups and sandwiches.