The publication industry is quite a niche, and there aren’t as many companies as there are in other industries.
That’s why not many are interested in it, but there is huge potential, especially with companies like Coffee News.
They are one of the biggest in the world and serve a very niche audience with their operations in a lot of countries. It is one of the 15 best franchises under $10,000 that you must own.
It might be a good opportunity for you if you are interested in owning a Coffee News franchise.
This article will cover all the details about Coffee News and its franchise system and what you can expect when you are opening a Coffee News franchise.
About Coffee News
Coffee News is a unique and popular weekly publication that offers light-hearted news, fun facts, trivia, and advertising opportunities to local communities.
It was founded by Jean Daum in Canada in 1988 to create an enjoyable reading experience for people at local coffee shops, cafes, and restaurants.
Each Coffee News weekly edition features several short, easy-to-read stories, horoscopes, puzzles, and entertaining tidbits that cater to a diverse audience.
They quickly grew their audience, and they now have over 600 franchises in 8 countries around the world. They are the largest weekly restaurant publication in the world.
Coffee News Franchise Model
| Cost or Fee | Amount or Percentage |
|---|---|
| Initial Investment to Open a Franchise | $11,150-$12,250 |
| Franchise | Yes |
| Franchising Since | 1996 |
| Franchise Fee | $9,900 |
| Royalty Fee | $40-$80/week |
| Liquidity | N/A |
| Estimated Outlets | 600+ |
How Much Does It Cost to Open a Coffee News Franchise?
Opening a Coffee News franchise costs anywhere between $11,150 and $12,250.
They are one of the cheapest franchise options available in the industry, and this cost includes the $9,900 franchise fee.
The exact cost will depend on some of the choices you make while opening the store.
These might include the type of stands you will buy, several enrollment fees, whether online or in-person and so on. You also need to pay a royalty fee of between $40 to $80 per week.
Coffee News Franchise Requirements
Coffee News is a publication that doesn’t require a lot of industry information because you only do the advertisement of the publication.
There are also not many financial costs associated with opening a franchise. That’s why Coffee News doesn’t have any kind of financial or personal requirement from the franchisees.
It’s beneficial if you have some experience in the field or as a store manager, but it’s not mandatory.
You will have high approval chances as long as you can pay the franchise fee, initial investment, and other associated costs.
Coffee News Profit & Revenue
The financials of Coffee News are not available to the public, so it’s not easy to get a hold of how much they make in any given year.
However, a report by Zippia suggests that Coffee News’ annual revenue has stood at $9.4 million in the last years.
There isn’t any info on how much of this $9.4 million stays with the company and counts as the net profit.
Coffee News Franchise Owner Salary
Because the financials of Coffee News is not available, it’s also not quite easy to know how much a Coffee News franchise owner makes.
The market average is about $66,000 annually. However, this number is probably higher than this for Coffee News because of their expected annual revenue.
So, the minimum Coffee News franchise owner salary is $66,000 annually, but it could be higher than this, too.
Coffee News Training and Support
Coffee News offers two kinds of training, one virtual and one in-person.
It’s a three-day classroom-style training program where they teach hands-on involvement in the management of the store.
Attending the training in person is not mandatory, so you can choose to attend which type of training.
Coffee News Terms of Agreement and Renewal
The initial agreement that you will sign with the company will be for four years.
You will have the right to keep the brand name for this amount of time if you do not breach the contract during this period.
After the four years end, you have the option to renew the agreement with the franchisor. The renewal is available for another four years if you meet the requirements.
Coffee News Obligations and Restrictions
Either the franchisee themselves or someone designated must put in the effort for the management of the Coffee News franchise store.
They do recommend the franchisee perform the management duties, but it is not obligatory.
In addition, the franchisees are restricted from reselling any kind of Coffee News product they purchase from the brand or any other third-party vendor.
Coffee News Financial Assistance
There is no direct or indirect financial assistance at the beginning of opening the franchised store. The franchisee is obligated to find the necessary financing by themselves.
However, after spending one year under the franchise agreement, the franchisor can help finance additional franchise territories.
They also help finance additional franchise rights, but it’s limited to a maximum of three stores. And you need to have a net worth of a minimum of $100,000 and have good credit.
Coffee News Payback Period
The total investment to start a Coffee News franchise is $12,250, and the profit per year of the franchise is estimated at $66,000.
So, to find out how long it will take to earn the initial investment back:
Payback Period: Total Investment/ Yearly Profit = $12,250/ $66,000= 0.18 years
It would take around 18 months to get the initial investment back for a Coffee News franchise. However, this figure might differ on the basis of various factors like sales, and how the business is run.
Coffee News Failure Rate
Franchised Outlets:
| Year | Outlets At The Start Of The Year | Outlets At The End Of The Year | Net Change |
|---|---|---|---|
| 2020 | 335 | 313 | -22 |
| 2021 | 313 | 293 | -20 |
| 2022 | 293 | 216 | -77 |
For Franchised Outlets:
- In 2020, the failure rate was (22)/335≈6.57%
- In 2021, the failure rate was (20)/313≈6.39%
- In 2022, the failure rate was (77)/293≈26.28%
According to the above table, we can see that the franchised outlets for Coffee News declined from 2020 to 2022, showing a failure rate between 6.57% and 26.28%.
Coffee News Comparison
| Name | Franchise Fee | Royalty Fee | Initial Investment |
|---|---|---|---|
| Valpak | $2,500 | N/A | $82,200-$200,800 |
| Money Mailer | $49,900-$59,900 | $75-$300/area | $65,210-$77,000 |
| Coffee News | $9,900 | $40-$80/week | $11,150-$12,250 |
Conclusion
Coffee News is the world’s biggest weekly restaurant publication, operating in 8 countries with over 600 locations.
These numbers make it obvious that being a part of their network through franchising is a good idea.
You need to invest something between $11,150 and $12,250, including the $9,900 franchise fee.
There aren’t many requirements, and they also provide you with training and support where needed.
You can expect your salary to be above the industry average, which is higher than $66,000 annually because they make more than the other similar companies in this niche industry.
FAQ
Is Coffee News a franchise?
Yes, Coffee News is currently a franchise. They have offered opportunities to those interested since 1996.
How successful is Coffee News?
Coffee News is the world’s biggest weekly restaurant publisher, and they operate in 8 countries with hundreds of franchises.
All these numbers show us how successful they are and how much success they can bring.
How many locations does Coffee News have?
Coffee News currently has 536 franchise locations in over 8 countries.
Who owns Coffee News?
Jean Daum, the founder of Coffee News, owns the company. He founded Coffee News in 1988. The owner started offering franchising options in the year 1996.
Where is Coffee News Headquartered?
The headquarters of the Coffee News is located at 503 PO Box, Hampden, Maine, 04444, United States.
Sources
https://www.coffeenews.com/start-a-franchise/
Amit Gupta is an experienced expert in digital marketing and co-founder of DrFranchises. With more than 11 years of knowledge in franchise digital marketing, SEO, email marketing, and social media marketing, Amit has helped many brands achieve incredible success online. As a passionate entrepreneur and owner of 7 franchises, he continues to study franchise models, looking at costs, revenue, and profitability to guide brands toward profitable growth. When he’s not working on digital marketing, Amit enjoys spending time playing with his beloved dog.