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The coffee franchising sector is recession-resistant and an integral part of American lifestyle — these were the findings of a recent Franchise Direct study of the coffee franchise industry. After examining the FDD/UFOC documents of 29 coffee franchises, Franchise Direct has found that this $11 billion industry, after weathering a slight dip at the start of the recession, is growing and diversifying, and thus presenting real opportunities for the future.

At the moment, the coffee shop industry is extremely competitive at the top and fragmented at the bottom. Starbucks, despite its recent struggles, continues to be the industry leader, with over 10,000 cafes around the world. Because of competition from fast food restaurants and convenience stores, coffee franchises, with their established brand identity, continue to be a reliable investment for those seeking to profit from this incredibly-popular beverage.

While the global recession has forced many consumers to rethink their spending habits, Franchise Direct’s research shows that America’s love affair with coffee continues unabated. A quoted poll tracking coffee consumption found an increase in coffee drinking last year in the pivotal 25-39 demographic, as drinking habits remained level amongst 40-59 year olds last year. We can safely assume that Americans will still buy coffee even as they look to cut their personal budget.

With coffee production slated to reach record levels this year, the right coffee franchise has enormous potential for profit. The population of Italy, for instance, is five times smaller than America’s, but the Italians sustain more coffee shops. A niche investment may be the ideal approach to fill untapped areas of the market. In line with the popularity of eco-friendly tastes, there has been an undoubted switch towards organic/fair trade coffee. Our report identifies this as a $1billion industry in itself.

Our study states that location is the most important thing to consider when purchasing a coffee franchise, with 75% of coffee business success pending on where it is situated. With that in mind, we advise prospective franchisees to consider van-based franchises or kiosk units, as they provide a cost-effective means of establishing a business. Beyond that, our study lists a number of other trends and factors prospective franchisees must consider before purchasing a coffee shop, such as ambience, marketing and staff. It is also worth noting that 65% of all coffee is consumed during breakfast hours.

Another reason to consider coffee franchises is the growing consensus among experts that coffee has a number of health benefits. Past perceptions that coffee presented health risks have been erased by authoritative research from universities like Harvard, UCLA and USC. In line with these studies, new polls of coffee drinkers show an acknowledgement of this new consensus.

People exploring franchises for sale will find that coffee franchises sell a product with broad public appeal that is seamlessly adapting to American consumer trends towards healthiness, social responsibility, and environmental sustainability.

Location and geography are intangibles in the world of franchising that end up having a huge effect on an entrepreneur’s ability to start and maintain a profitable business. Small businessmen and women are facing enough challenges at the moment, so navigating the pressures of geography in starting a business is a prerequisite.

Truly mobile franchisees and franchisors should take note of the Small Business and Entrepreneurship Council’s Small Business Survival Index for last year. The SBE ranks from one to 51 the best and worst states (with Washington DC included) to operate a small business. The index was created by tabulating a number of factors including taxes, various regulatory costs, government spending, property rights, health care and energy costs.

The most entrepreneur-friendly states are South Dakota, Nevada and Wyoming, while New Jersey, California and Maine are the three most difficult states to make a living as a small businessperson.

Anyone in the franchise industry considering uprooting to level the business playing field at this difficult time should spend a few minutes analyzing these statistics. Relocation might become a necessary move for entrepreneurs in the coming months, and it’s important to know the best places to invest.

Some interesting statistics on franchisors’ salaries have emerged in the last week. Over the past few months, Virginia-based company FranData Inc. has been soliciting franchisors for their payroll figures, in order to provide a broad look at pay across the franchising industry. The financial crunch has made franchisors much more cost-conscious, and by taking a bird’s eye view at the industry, and it’s safe to say they’ll find some interesting information here.

The Wall Street Journal described the FranData survey as “what’s believed to be a first-ever glimpse at how rewarding work at franchising companies can be”. The study reveals that the best paying managerial jobs are in the full-service restaurant sector, while the best-paid managers were in charge of legal departments or handling a franchise outlets site selection.

Follow the links to find specific info on annual base pay for franchise managerial and professional staff, comparative base pay by sector, and pay by franchise industry and size.

That’s the rise in profit for Yum! Brands in 2008. Yum!, a quick service restaurant company which owns companies like KFC, Pizza Hut, Taco Bell, Long John Silver’s and All American Food, had second-quarter profits of $2.65 billion for the second quarter of 2008. Compared to a profit $2.37billion for the previous year, Yum! has enjoyed a 12% rise in profits. So despite the economic turmoil, established food franchises are continuing to grow and to thrive.

That’s the number of cups of coffee consumed in one calendar year around the world. Good thing that Franchise Direct has a number of outstanding opportunities specializing in the world’s popular beverage.