The Brasil Coffee House Franchise LLC
Date of Incorporation: 2005
Franchising Since: 2005
Headquarters: New York
Business and Description: The Brasil Coffee House Franchise LLC offers a franchise to operate a Brazilian style coffee shop which offers fresh roasted Brazilian whole bean coffee, traditional and espresso based coffee drinks, iced and blended coffee drinks, teas, sandwiches, salads, pastries and desserts. The décor is designed to evoke the spirit, history and ambience of Brazilian coffee growing. Only Brazilian coffee is sold. In 2003, an affiliate, Brasil Coffee Distribution, Inc., established a coffee roasting facility at a location in Long Island City. This facility has been equipped with state of the art coffee roasting, storage and packing facilities.
Franchise Offer: The Brasil Coffee House Franchise LLC is offering a single, full service retail specialty coffee beverage store offering fresh roasted Brazilian coffees, traditional and espresso based coffee drinks, iced and blended coffee drinks, tea and tea-based drinks, sandwiches, salads, pastries and desserts in a distinctive Brazilian ambience. The initial franchisee fee is $35,000 and must be paid on signing the franchise agreement.
Financial Assistance: The Brazil Coffee House Franchise LLC does not offer direct or indirect financing nor do they guarantee any note, lease or obligation.
Training: Mandatory training is provided for the franchisee and designated manager. The training lasts for 5 weeks, with 3 weeks at a training facility and 2 weeks at the franchise location. The training involves both in classroom and on the job training. The training will cover skills and techniques of coffee and coffee drink preparation, customer service, marketing, employee hiring etc. If after the franchisee completes the initial training and want additional training for themselves or any of their employees or if the franchisee hires a new designated manager, The Brasil Coffee House Franchise LLC will provide additional training at a date, time and location that are convenient for them.
Territory: Except where otherwise provided, the franchisee will be granted the right to operate one Brazil Coffee House within an exclusive area. This area will be defined by certain geographical radius based on the population density in the city where the store is located. The franchisor will not establish a Brazil Coffee House Store within the franchisee’s protected area if they are in full compliance with the methods, procedures, standards and specifications required by the franchisor. The franchisor and their affiliates have the right to sell whole bean and ground Brazil Coffee House coffee products at supermarkets, specialty food stores and other retail outlets within the territory. The franchisee’s Brazil Coffee House store will typically be located in a retail shopping area, and the size of the Store will range from approximately 900 square feet to 2,000 square feet.
Renewal and Termination: The length of the term of franchise is 5 years. Renewal terms are 5 years each and are subject to contractual requirements. There is no renewal fee. The franchisee can terminate the contract at any time under any grounds permitted by law. If the franchisee breaches the franchise agreement The Brasil Coffee House Franchise LLC can terminate the agreement. The Brasil Coffee House Franchise LLC will assist in the selecting and approving the site.
Obligations and Restrictions: The franchisee must purchase a start-up package from The Brasil Coffee House Franchise LLC. To ensure consistency, quality and uniformity throughout the System, the franchisee must purchase all of their coffee products from the franchisor’s affiliated company, Brasil Coffee Distribution, Inc. If a local or regional advertising cooperative exists to promote The Brazil Coffee House in the television market in which the franchisee’s Brazil Coffee House Store is located, the franchisee must become a member and participate in the same manner as the other members.
Total Number of Units for 2005: There are currently no franchised Brasil Coffee House outlets. There is a The Brazil Coffee Shop outlet owned and operated by an affiliate, Brasil Coffee House, Inc., in Long Island City, New York.
Investment Table:
Estimated Initial Investment for Single Unit Franchise:
| Name of Fee |
Low |
High |
|---|---|---|
| Initial Franchise Fee |
$35,000 |
$35,000 |
| Start-up Package |
$88,530 |
$139,130 |
| Leasehold Improvements |
$50,000 |
$125,00 |
| Signage |
$6,000 |
$6,000 |
| Rent and Security Deposits |
$5,000 |
$20,000 |
| Professional Fees |
$7,500 |
$10,000 |
| Insurance |
$800 |
$1000 |
| Travel and Living Expenses while Training |
$2,500 |
$3500 |
| Opening Inventory |
$4,000 |
$8,000 |
| Grand Opening Advertising |
$2,500 |
$2,500 |
| Additional Funds - 6 months | $25,000 |
$35,000 |
| Total | $226,830 |
$385,130 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Continuing Royalty Fee | 5% of gross sales |
| Marketing Development Fund Fee | 1% of gross sales |
| Local Advertising Expenses | Varies |
| Advertising Cooperative Fees | Not Yet Established |
| Travel & Living Expenses while in Workshops & Seminars | $500 - $800 (approximately) |
| Repair & Refurbishment | $5000 |
| Interest and Late Payment Charge | The lesser of 12% per annum or the maximum permitted by law |
| Audit Fees | $1000-$2000 |
| Renewal Fee | $0 |
| Transfer Fee | $5,000 |
| New Franchisee Training Fee | $5,000 |
| Attorney Fees | Varies |
| Additional Training Expenses | $500 -$1000 |
| Management Fees | $5,000-$10,000 |
| POS Maintenance | $2000 per year (approximately) |
| Indemnification | Reimbursement of damages and losses |
The above information has been taken from the UFOC/FDD of The Brasil Coffee House Franchise LLC.
Franchise Direct's Disclaimer
You may be interested in the following franchises...
Maui Wowi Hawaiian
Serve up success for yourself with the unique Maui Wowi Hawaiian smoothie franchise, and celebrate the...
Minimum Investment: $60,000.
Café Fresh
Start your own Fresh and Healthy Restaurant with Café Fresh’s mouth watering franchise opportunities!
Minimum Investment: $50,000.
