What are my Startup Costs?

Below are the startup costs for opening a Cafe2U mobile coffee franchise as published in our Franchise Disclosure Document. Total estimated costs range from $108,896 to $152,771. Full FDDs are available to anyone who requests information or fills out our franchise request form and speaks to one of our franchise recruiters.

 

NOTES:

1. The low estimate covers your likely expenses for one person, and the high estimate covers your likely expenses for two people, to complete both segments of Initial Training before the Opening Date. The estimates assume that Corporate Training takes place in Bend, Oregon. You are responsible for travel expenses to attend Initial Training and for paying a salary to your employee during Corporate Training and In-Territory Preparation.

2. In exchange for the Grand Opening Marketing Program Fee, we provide you with an Opening Plan, Opening Launch services and Opening Marketing Materials.

3. You purchase the Vehicle directly from a dealer. The cost of the Vehicle will depend on the specific model approved for your Franchise Territory. The Vehicle cost estimate does not include delivery fees, taxes, license fees, and other miscellaneous fees that you pay to the dealer.

Costs that you incur to register ownership of the Vehicle and secure permits and licenses to operate the Vehicle as a mobile food vehicle are shown in the line item for “Permits and Licenses.”

We notify you of the cost of the Vehicle Package before the end of Corporate Training. The Vehicle with the Vehicle Package installed will comply with our equipment and branding specifications and be compliant with mobile vending permitting requirements applicable in your Franchise Territory at the time of delivery.

We include in the Additional Funds category an estimate for the following reimbursements that you must pay to us: (i) any delivery fees, taxes, license fees, and other miscellaneous fees that are imposed on our sale of the Vehicle Package to you; and (ii) delivery transportation costs to ship the Vehicle to a destination in the Franchise Territory after installation of the Vehicle Package.

4. You will purchase an opening inventory of Proprietary Products from us and Non- Proprietary Products from recommended or approved suppliers. We include the cost of additional purchases of Products after the Opening Date and during the initial period in the Additional Funds category.

5. You must comply, at your expense, with all applicable federal, state, and local laws, rules, and regulations obtain any and all permits, registrations and licenses necessary for the full and proper conduct of the Mobile Business and operation of the Vehicle including business licenses, vehicle registrations, drivers licenses, sanitation permits, fictitious name registrations, sales tax permits, and mobile food vehicle permits. Certain jurisdictions impose very high fees.

6. This estimate covers 3 months of insurance premiums for the minimum coverage currently specified in the Franchisee Manual. Your premiums may vary depending upon the location of your Franchise Territory, your driving history, and if you choose to purchase additional coverage above our minimums.

7. As our business model is a mobile business, we do not expect you to lease any office space. We assume that you will be able to park your Vehicle at home and will not incur any expenses to lease parking space. However, some jurisdictions require the Vehicle to be parked at a commissary. We estimate that, where required, the use of a space in a commissary facility will cost $900 to $1,800 during the initial period of your business.

In addition to other expenses mentioned in the Item 7 notes, the Additional Funds category covers your on-going expenses during the initial period of your business for Vehicle fuel costs; payroll expenses for employees; costs to replenish the inventory of Products; and costs to maintain and repair the Vehicle.

The Additional Funds estimate includes $1,000 to $3,000 to cover the delivery fees, license fees, taxes and transportation costs that you will likely pay in connection with purchasing the Vehicle.

Additional Funds do not include an allowance for costs associated with POS and recordkeeping. Until we introduce the Business Management System, we impose no requirements regarding the POS or recordkeeping system that you must use to document Gross Sales.

In estimating your likely Additional Funds, we make no allowance for financing costs if you finance the purchase of the Mobile Unit Franchise or for salary or compensation to Franchisees or their owners even if they operate the Vehicle and perform day-to-day services as a Certified Manager.

New businesses usually generate an initial negative cash flow. We cannot estimate if your cash flow from operations will be sufficient to cover on-going expenses during the initial period. This is only an estimate of your additional capital requirements during the initial period and we cannot assure you that you will not need additional capital during or after the initial period of the Mobile Business.

We base these estimates on the experience of our parent and its affiliates in Australia and the United Kingdom. We cannot assure you that you will not need additional funds during or after the initial period of your Mobile Business.

Interested in learning more? Download our free franchise report, and let’s start a conversation.