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Below is an in-depth analysis and side-by-side comparison of Bad Ass Coffee Company vs Cafe 2U 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 | $109,146 - $154,621 |
Franchise Fee | $35,000 | $25,000 |
Royalty Fee | 6% | $175/wk |
Advertising Fee | 2% | - |
Year Founded | 1991 | 2000 |
Year Franchised | 1998 | 2005 |
Term Of Agreement | 5 years | - |
Term Of Agreement | 5 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 | -/- |
Start-up Costs | No/Yes | -/- |
Equipment | No/Yes | -/- |
Inventory | No/Yes | -/- |
Receivables | No/No | -/- |
Payroll | No/No | -/- |
Training & Support |
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Training | - | On-The-Job Training: 1 week Classroom Training: 1 week Additional Training: At Grand Opening |
Support | Newsletter, Toll-free phone line, Grand opening, Internet, Security/safety procedures, Field operations/evaluations, Purchasing cooperatives | Newsletter Meetings/Conventions Toll-Free Line Grand Opening Online Support Security/Safety Procedures Field Operations |
Marketing | Co-op advertising, Ad slicks, Regional advertising | Ad Templates |
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) | - |
Expansion Plans |
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US Expansion | - | Yes |
Canada Expansion | No | - |
International Expansion | Yes | Yes |
Cafe2U is an Australian-born company which expanded into the United States in 2012.