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Below is an in-depth analysis and side-by-side comparison of The Coffee Beanery vs Cargo & James Tea including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $112,500 - $496,100 | $100,000 - $250,000 |
Franchise Fee | $15,000 | $25,000 |
Royalty Fee | 4% | 7% |
Advertising Fee | 2% | - |
Year Founded | 1976 | 2001 |
Year Franchised | 1985 | 2006 |
Term Of Agreement | 10-20 years | - |
Term Of Agreement | 10-20 years | - |
Renewal Fee | 25% of initial fee | - |
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/No | 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, Meetings, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations | - |
Marketing | Co-op advertising, Ad slicks, National media | - |
Operations |
International franchisees required to buy multiple units/master licenses; 30% of all franchisees own more than one unit Number of employees needed to run franchised unit: 14 - 17
Absentee ownership of franchise is allowed. (90% of current franchisees are owner/operators) | - |
Expansion Plans |
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US Expansion | Yes | - |
Canada Expansion | No | No |
International Expansion | Yes | No |
Cargo & James Tea has pioneered the specialty tea cafe business concept and knows the time is right to capitalize on increased tea consumption across Canada and the U.S., in a caf� setting. Cargo & James is truly revolutionizing the way we drink tea. With a trendy atmosphere and inviting feel to the caf�, stepping into a Cargo & James breaks the stereotype that tea is old. The tea industry is expected to exceed $10 Billion in sales by 2010 according to the Sage Report, �Tea is Hot�.