How do I compare candy store franchise opportunities?
Compare candy store franchises on where product must be bought and how the franchisor sets what you pay for it, how the brand handles bulk bins and shelf life, who holds the head lease in mall and tourist locations, how seasonal the system is, whether a resale unit or a new one suits you, and what current franchisees tell you.
Candy franchises can differ in the contract and in daily operations. The differences sit in the contract and in daily operations, so compare them on the same questions rather than on the brand. Write your questions down before you speak to any franchisor, and put the same ones to each. Buying a Coffee Time franchise raises many of the same points.
Where product comes from
Ask whether you must buy product from the franchisor or from approved suppliers, and how the cost of that product is set and changed. Ask what happens if you find a supplier of your own. Ask who handles shipping and how often orders arrive. A system that controls supply tightly may offer consistency, but it also limits your choices.
Bulk bins and shelf life
Many candy stores sell loose candy from bins. Ask how the brand handles bin cleaning, labelling and rotation, and what happens to stock that goes stale. Ask whether the franchisor takes back or credits unsold items. Existing franchisees can tell you how much stock they really lose.
Locations and seasons
Candy franchises often sit in malls and tourist areas, where the lease matters as much as the brand. Ask who holds the head lease, what happens at renewal, and whether the landlord must approve a transfer. Ask existing franchisees how their sales rise and fall through the year, rather than relying on the franchisor’s account of it.
Resale or new unit
A resale unit has a history you can examine. A new unit has a build-out and an opening to plan. Speak to several current and former franchisees. Franchise disclosure requirements vary, so ask your lawyer which apply.
Related reading
11 pages on the same subject, grouped by topic.
Buying
- Expert answerCan you buy a Coffee Time franchise in Canada?
- Expert answerCan you buy a UPS Store in Canada?
- Expert answerDo supplier rebates and loyalty programs transfer when I buy a retail store?
- GuideBuying a café or coffee shop in Canada
- Expert answerWhat should I do in the first month after buying a coffee shop?
- Expert answerHow do I find a bulk food store for sale?
Legal
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
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