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Barnie's® Coffee & Tea Franchise Cost & Fees

Date of Incorporation: 1981

Franchising Since: 1981

Headquarters: Orlando, Florida.

Business and description:
Barnie’s Coffee and Tea Company retail stores offer for sale coffee, tea and related retail products including sweets. Barnie’s Coffee and Tea Company also make Barnie's products available through mail order and e-commerce and also license major coffee vendors and may license other such vendors the right to sell certain Barnie's branded products to non-retailers (for example, offices and restaurants). They also sell Barnie's brand products to other retailers. Barnie’s Coffee and Tea Company have one affiliate, Barnie’, Inc.

Franchise Offer: The single franchise offers the opportunity to own and operate a retail store under the name “Barnie’s Coffee and Tea Company”. The Franchisee will offer the public gourmet coffee, tea, pastries and related products and accessories. The initial franchise fee is payable in installments: the first installment of $5,000 is due and payable immediately upon execution of the Franchise Agreement and the second installment of $15,000 is due and payable immediately upon the execution of the lease or sublease for the Store.

Financial Assistance: Barnie’s Coffee and Tea Company does not provide any financial assistance nor do they guarantee any note, lease or obligation.

Training and Assistance:
The franchisee and any full time managers must attend a mandatory training programme. This takes place at Barnie’s Coffee and Tea Company headquarters in Orlando, Florida. The franchisor will bear the cost of maintaining the training facility in Orlando, Florida, including the overhead cost of training, staff salaries, and training materials. The franchisee must pay all traveling, living and other incidental expenses incurred by the franchisee and their employee(s) regarding attendance at the training program.

Territory: The franchisee may only operate in a store approved by Barnie’s Coffee and Tea Company. If the store is located with an enclosed space, such as a mall, Barnie’s Coffee and Tea Company will not operate or franchise a store in the same enclosed space but may operate or license others to operate a Store at any site located outside of the mall or other location.

Renewal and Termination: The franchise agreement extends for the length of the original lease, not to exceed 10 years. Renewal is for one additional term.

Obligations and Restrictions: Barnie’s Coffee and Tea Company will give the franchisee, area developer and the regional director initial and ongoing training. Barnie’s Coffee and Tea Company will also make available at reasonable rate advertising and promotional materials as they are developed. The franchisee are obligated to purchase or lease, in accordance with specifications for the Store, equipment and fixtures meeting the franchisor’s specifications for quality and design. The franchisee may purchase or lease original and replacement equipment, fixtures and supplies meeting such specifications only from approved vendors. Barnie’s Coffee and Tea Company require that the Store be under the direct on-premises supervision of a trained manager at all times.

Total Number of Company Owned Units for 2005: 1
Total Number of Company Owned Units Opened for 2005: 0
Total Number of Company Owned Units Closed for 2005: 0

Total Number of Franchised Units for 2005: 25
Total Number of Franchised Units Opened for 2005:  6
Total Number of Franchised Units Closed for 2005: 9

Investment Table:

Estimated Initial Investment for Single Unit Franchise:

Name of Fee Low High
Initial Franchise Fee $20,000    $20,000
Leasehold Improvements $110,000 $152,000
Utility Deposits $0 $1,000
Fixtures and Equipment $40,000 $75,000
POS System including licence fee $11,000 $17,000
Organizational Costs $500 $2,000
Opening Inventory, Supplies and Store Set-Up Expenses $25,000 $35,000
Insurance-Liability and Workman’s Comp $3,000 $6,000
Real Estate Costs $3,000 $4,000
Grand Opening Advertising $5,000 $5,000
Additional Funds $7,500 $20,000
Travel Expenses $2,000 $4,500
Total    $227,000 $341,500

Ongoing Costs for Single Unit Franchise:

Name of Fee Amount
Royalties 7% of weekly gross sales
Advertising/Marketing 2% of Net Sales
Transfer fee 50% of then current initial franchise fee
Interest on Past Due Amounts Maximum interest rate allowed by applicable law
Expenses Related to Supplemental Training Room, board and travel
Renewal Fee 50% of then current applicable initial franchise fee
Insurance premiums Will vary under circumstances
Indemnification Will vary under circumstances
Cost of Enforcement Reasonable attorneys’ fees, plus cost

The above information has been taken from the UFOC/FDD of the Barnie's Coffee & Tea Company.

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