About a year ago, I invested a few months researching and speaking with the owner and Florida franchise developer of Coffee News USA about the idea of purchasing an existing territory in the area that had been purchased but failed to ever get going. Over the course of a few months, I had been in communication with the territory owner who wanted to sell the franchise, the corporate office manager/owner of the corporation and the Florida developer who also happened to be a successful franchisee himself.
During this ongoing dialog, I learned all about what it takes to become a franchise owner and how to run this business. During that time frame, I had developed a full-scale plan of how I would develop the area I wanted to purchase. In the end, my deal fell through due to the sellers changing their minds. In the meanwhile, I had so much time and effort into this concept that I published a book about it. The following information is what I learned during the attempted sales process of becoming a franchise owner.
Costs to Become a Publisher
There are various fees associated with buying into your own franchise. Coffee News charges a territory fee of $8,500 to secure an area with a population of about 50,000 people in your initial franchise. If you wanted to expand your business, you could purchase an additional franchise of around 40,000 people for $5,500. They will limit anyone’s owner to a maximum of twenty franchises. You are permitted to develop multiple editions of the paper within one franchise.
Costs to Maintain an Edition of the Publication
You will be producing a new publication each week in this business. There is content in the middle of the paper that is supplied to all franchisees by corporate. This content is licensed from a third party freelance writer. You will be charged a weekly fee of $85 for your first franchise $25 for each additional franchise. When you have more than one edition within a franchise, you will not be charged this content fee for duplicate editions. You will also incur a weekly printing cost for your publication. The average edition prints 2,000 copies if they have fifty locations and will pay about $200 with shipping for the paper.
Training to Become a Franchisee
Coffee News requires that new franchisees attend an onetime training program at their corporate office in Maine. This program lasts three days and is offered a couple of times per year. The cost of the training is included in your initial franchise fee. The program is designed to teach you the ins and outs of the business and prepare you to be successful within the company. Current highly successful franchisees teach the sessions, making this a peer learning experience as opposed to the typical corporate lecture training.
Making Money with Coffee News the USA
As a publisher, you earn a living by selling the 32 advertising spaces on each edition of your publications. The value of these ads is based solely on how many locations you have these papers hosted for readers in the area. Editions with 40 locations can typically charge about $25 per week where routes with 100 locations could demand closer to $50 or more per week. Most ads are sold in 13-week minimums up to annual deals. After expenses, a publisher can earn anywhere from $515 up to $1315 per week from a single edition. Most publishers own multiple franchises and develop numerous editions, multiplying their revenues.
A Final Thought
This is a truly exciting business opportunity and one that could easily be successful in any part of the United States or even around the world. While I was unsuccessful to complete the deal with this last attempt, I still personally intend to return to this company again in the near future and buy into my own franchises directly from the corporate office. If you are not that interested in this opportunity another equally lucrative and amazing opportunity is Can Singapore which is one of the best suppliers of coffee and you can try to get their franchise as well.