How do I check a coffee franchise’s espresso equipment before buying?
Ask for the age and service history of the espresso machine and grinders, the water filtration records, whether each machine is owned or leased, whether it is the brand’s specified model, and whether a new standard is coming. Then find out who will service the equipment after the sale.
In a coffee shop, many drinks depend on the espresso machine. On a franchise resale, the franchise agreement may also limit which models are allowed, so check it before planning to swap in a cheaper machine. Check the equipment as carefully as the lease and the books, and do it with someone who understands it.
Machine and grinder age and service records
Ask for the make, model and age of every machine and grinder, and for the service invoices. Look for frequent calls, repeat faults and parts that were replaced recently. Watch a busy period, noting the speed and consistency of the shots, and ask a technician to look at the group heads, boilers and steam wands if the seller agrees.
Water filtration
Water quality affects both taste and the life of the machine. Ask what filtration system is installed, when the filters were last changed and whether the changes are recorded. Poor records can mean scale inside the machine, which is expensive to repair. A technician can tell you what to look for.
Owned, leased and brand-specified
Ask whether each machine is owned outright, leased or supplied by a roaster or the franchisor. Ask the franchisor whether a new equipment standard is planned, and read the franchise agreement for what it requires. The page on renovating a franchise resale is relevant here.
Who services it after the sale
Ask which technician or company serves the shop, how fast they respond and whether the service agreement transfers to you. Have your lawyer review any lease or agreement before closing. The coffee franchise overview gives wider context on one brand.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideBuying a café or coffee shop in Canada
- Expert answerCan you buy a Coffee Time franchise in Canada?
- GuideFood franchise opportunities in Canada: what franchisors publish
- Expert answerDo I have to renovate a franchise resale location?
- Expert answerWhat is a franchise resale?
- Expert answerCan I buy a café with no experience?
- Expert answerHow do I buy a coffee kiosk or drive-through stand?
- Expert answerWhat should I check before buying a cat café?
- Expert answerShould I buy an existing café or open a new one?
- Expert answerWhat should I check before buying a coffee franchise resale?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 02Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 03Canadian Food Inspection AgencyGovernmentFact sheet: Preventive food safety controls
- 04Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
Deavo is an advertising and listings platform, not a brokerage, law firm or valuation firm. This page is general information, not legal, tax, accounting or valuation advice, and rules differ by province. Confirm anything you rely on with a qualified professional before you act on it.