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Below is an in-depth analysis and side-by-side comparison of Orange Julius of America vs The Coffee Club including start-up costs and fees, business experience requirements, training & support and financing options.
Start-Up Costs and Fees |
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Investment | $194,200 - $380,600 | $450,000 - And Up |
Franchise Fee | $20,000 - $35,000 | N/A |
Royalty Fee | 6% | 6% |
Advertising Fee | - | 3% |
Year Founded | 1926 | 1989 |
Year Franchised | 1948 | 1994 |
Term Of Agreement | 15 years (co-terminus w/lease) | - |
Term Of Agreement | 15 years (co-terminus w/lease) | - |
Renewal Fee | $2.5K | - |
Business Experience Requirements |
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Experience | Good ethics in business and positive business acumen are the only tools required for what The Coffee Club believes to be a recipe for success; that, and a commitment to excellence, a thirst for knowledge and a passion for people. | |
Financing Options |
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In-House/3rd Party | In-House/3rd Party | |
Franchise Fees | No/No | -/- |
Start-up Costs | No/No | -/- |
Equipment | No/No | -/- |
Inventory | No/No | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | - |
Support | Newsletter, Meetings, Toll-free phone line, Grand opening, Internet, Field operations/evaluations, Purchasing cooperatives | The six building blocks of Mission, People, Marketing, Operations, Property and Financial Management are all supported by manuals, training and support departments to tap into, to ensure our daily operation is supported and provided with the tools to succeed. |
Marketing | Co-op advertising, Ad slicks | - |
Operations |
Number of employees needed to run franchised unit: 10 - 20
Absentee ownership of franchise is allowed. | - |
Expansion Plans |
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US Expansion | - | - |
Canada Expansion | No | - |
International Expansion | Yes | - |
When Julius Freed opened his first orange juice stand in 1926, he was doing well, but his real estate broker, Bill Hamlin, felt he could do better. Using his chemistry background, Hamlin devised a formula to give the juice a smooth, creamy and airy texture. Once the new drink was unveiled, sales at the stand grew from $20 to $100 a day. As more and more customers began to say, 'Give me an orange, Julius,' the new product got its name.
Hamlin quit his job in real estate and focused on opening Orange Julius stores across the United States. Within three years he had opened 100 stores and the profits for the system, whose only product was a 10-cent drink, approached $3 million. Other drink flavors were added to a menu that now includes nachos, hamburgers and hot dogs.
Orange Julius' parent company, International Dairy Queen, also owns Dairy Queen and Karmelkorn. The three concepts are franchised together at Treat Center stores.
The Coffee Club 'Cafe Bar Restaurant' These licensed restaurants specialise in offering customers what they want on request. There's waiter service - attentive yet unobtrusive - and a wide choice of breakfast, lunch and dinner meals available morning, noon or night. This style of The Coffee Club requires a commitment to restaurant-style customer service, longer opening hours and a dedication to providing additional options to the standard menu. We call these 'Chef's Choices'. Requires an initial capital investment of more than $500,000The Coffee Club 'Club' offers a range of light meals, gourmet sandwiches, coffees, beverages, cakes and counter service. At the centre is our dedication to serving excellent coffee. Clubs typically exist on strip locations or within a shopping centre or high-pedestrian areas. You will find that The Coffee Club system boasts more 'Clubs' than any other style of store available. Requires an initial capital investment of approximately $500,000 Generally the smallest option in The Coffee Club portfolio, Kiosk's are predominately seen in shopping centres with a focus on light meals, gourmet sandwiches, coffee, beverages, cakes and counter service. A kiosk location requires an initial capital investment of approximately $450,000