Can you buy a Coffee Time franchise in Canada?

Coffee Time offers franchises. It publishes a franchising FAQ for people thinking of opening a location. Coffee Time is also listed in the Canadian Franchise Association’s LookForaFranchise.ca directory. Deavo has carried listings for Coffee Time locations, so a franchise already in operation may also be for sale.

Cost and the cash you bring

Coffee Time’s FAQ says the cost of opening a location varies with the type and size of the location. It says a large part of the cost may be financed, but recommends a minimum cash investment of at least 40 per cent. For the franchise fee, the FAQ points to a fee overview or to its national office. Coffee Time’s franchising page sets out a development cost budget: “Initial Franchise Fee $25,000.00”, “Training Fee $5,000.00” and a total of $590,700.00, or $624,500.00 including a drive-thru addition, which it says does not include working capital, opening inventory, rent and utility deposits and legal expenses. It lists “a Royalty Fee of 5% of all sales per week” and an Advertising Fee of “as little as 3% per week”. The page names no currency; the markets it lists, Toronto, Mississauga and Peterborough, are in Canada. More on the brand is in Buying a Coffee Time franchise in Canada.

Locations, supplies and training

According to the FAQ, Coffee Time is actively seeking prime locations, and a site you choose yourself must be evaluated and approved by Coffee Time. It says construction is conducted or supervised by Coffee Time, and that it will negotiate or aid in negotiating leases. Franchisees buy specified supplies through a designated food distributor. It says fast food experience is helpful, but the interest and effort of the franchisee matter more than hospitality or retailing experience, and it describes a training program four weeks in duration; the franchising page lists a 3-Week Training Program, so ask which applies. Coffee Time says it cannot guarantee that any store will reach a given level of sales, profit or cash flow.

Before you sign

The CFA says franchise disclosure is regulated at the provincial level rather than through a single national law. In Ontario, the Arthur Wishart Act requires the prospective franchisee to receive the franchisor’s disclosure document not less than 14 days before the earlier of signing an agreement relating to the franchise and paying consideration for it, subject to the exemptions in s.5(7), which cover some resales by a franchisee. If you are looking at an existing location, read What should I know before buying an existing franchise unit?.