CP Coffee Inc.
Date Incorporated: 2003
Franchising Since: 2007
Headquarters: Washington
Business and Description: CP Coffee Inc. offer franchises to sell a limited menu of specialty espresso and coffee drinks, baked goods, soft drinks and other complementary items. CP Coffee Inc has one affiliate, Cutters Point Incorporated, with common ownership. Cutters Pint Incorporated is the roasting company where the Franchisee will purchase the coffee that will be offered from the licensed Business.
Franchise Offer: The Initial Fee for the Cutters Point Coffee Franchise is $15,000. CP Coffee Inc. offer franchises for businesses offering and selling a limited menu of specialty espresso and coffee drinks, baked goods, soft drinks and other complementary items, prepared to order operating under CP Coffee Inc. Marks and System.
Financial Assistance: CP Coffee Inc. does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.
Training and Assistance: The Franchisee and the manager must complete the initial training programme which consists of both classroom and on the job training. The training covers sales, marketing etc.
Territory: The agreement gives the franchisee an exclusive territory in which to operate from. The Agreement excludes certain sites from the territory, even though they may be located within the boundaries of the franchisee’s territory. Exclusions are: Wholesale Accounts (including retailers who serve Franchisor's products, but do business under a different name), University and college campuses; regional shopping malls; regional airports, office building complexes of more than 500,000 square feet, sports stadiums and similar facilities; regional and county fairs; special events; and temporary locations (less than a month).
Renewal and Termination: The term of Franchise is for 10 years. If at the end of the term the franchisee is in good standing they may renew the agreement for the same length of term under the then current agreement. The fee for renewal is up to 2/3 of the then-current Initial Fee
Obligations and Restrictions: The Franchisee must either devote their full time and effort to managing and operating the Licensed Business or delegate its management or operation to a responsible person. This manager must first complete the initial training program. The Franchisee may offer for sale only products and services that the Franchisor approves.
Total Number of Company Owned Units for 2005: 1
Total Number of Company Owned Units Closed for 2005: 0
Total Number of Company Owned Units Opened for 2005: 1
Total Number of Franchised Units for 2005: 10
Total Number of Franchised Units Opened for 2005:
Total Number of Franchised Units Closed for 2005:
Investment Table:
Estimated Initial Investment for Single Franchise Unit:
| Name of Fee | Low | High |
|---|---|---|
| Initial Fee | $15,000.00 | $15,000.00 |
| Travel & Living Expenses While Training | $100.00 | $2,000.00 |
| Real Estate & Improvements | $10,000.00 | $50,000.00 |
| Leasehold Improvements | $75,000.00 | $150,000.00 |
| Equipment | $35,000.00 | $60,000.00 |
| Signs | $12,000.00 | $30,000.00 |
| Training Expense | $250.00 | $4,000.00 |
| Licenses | $200.00 | $2,000.00 |
| Grand Opening | $1,000.00 | $15,000.00 |
| Advertising & Advertising Fee (3 months) | $500.00 | $2,500.00 |
| Insurance | $1,000.00 | $5,000.00 |
| Legal Fees | $1,000.00 | $5,000.00 |
| Opening Inventory of Supplies | $5,000.00 | $20,000.00 |
| Additional Funds (3 months) | $25,000.00 | $75,000.00 |
| Miscellaneous Opening Costs | $1,000.00 | $30,000.00 |
| Total | $182,050.00 | $465,500.00 |
Ongoing Costs for Single Unit Franchise:
| Name of Fee | Amount |
|---|---|
| Royalty Fee | 5% of Gross Revenues, or $250 per week, if greater. |
| Advertising Fee | 2% of Gross Revenues or $125 per week, if greater; We reserve the right to increase the Advertising Fee to not more than 4%. |
| Local Advertising | 1% of Gross Revenues |
| Cooperative Advertising | To be determined by majority vote of members of cooperative, if formed by 2/3 vote of franchisees in the franchisees’ area. Maximum is 5% of Gross Revenues. |
| Additional Training | Approximately $25 to $300 per program per person. In addition, the franchisee is solely responsible for all compensation, salaries, benefits and travel-related expenses for themselves or any employees. |
| Transfer | $4,500 |
| Audit (less than 3% under reporting) | 1.5% per month interest on amount of underpayment plus the amount of the underpayment |
| Audit (3% or more under reporting) | 1.5% per month interest on amount of underpayment plus the cost of the audit plus the amount of the underpayment |
| Renewal | Up to 2/3 of the then-current Initial Fee |
| Profits on supplies or equipment | Variable |
The above information has been taken from the UFOC/FDD of CP Coffee Inc.
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