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Sonoma Coffee Café Franchise Cost & Fees

Date of Incorporation: 2007

Franchising Since: 2007

Headquarters: Nevada

Business and Description: Beginning in February 2007, Sonoma Coffee Café established and continues to develop and operate a Coffee Cafe operation known as Sonoma Coffee Café and offers coffee cafe products and services for sale to the general public.

Franchise Offer: Sonoma Coffee Café is offering two types of franchises. The two programs differ in physical size and type of real estate location: (1) a kiosk that is a customer walk up service facility typically placed into the walk way or entrance way of a mall or office building physically requiring 300-400 sq. ft. and (2) an inline store that typically is within a retail strip center or mall requiring 1,000-1,500 sq. ft.
If the Franchisee wishes to obtain more than one location, they may do so by purchasing additional locations at the same time of purchase of the first store and receive a discount from the applicable Franchise Fee and sign a Franchise Agreement under the terms and conditions then available.

Financial Assistance: Sonoma Coffee Café does not offer any direct or indirect financing nor do they guarantee any note, lease or obligation.

Training and Assistance:
The training consists of 2 to 3 days for the franchisee and up to 3 employees. The training covers beverage preparation, safety, marketing, operations and equipment operations.

Territory: The Franchisee will receive an exclusive territory as determined by population density, location, traffic flow, speed of traffic, general retail activity and vitality of the area. Sonoma Coffee Café will not operate, through current trademarks or different trademarks, any permanent Sonoma Coffee Cafes or grant franchises for a similar or competitive business within the Protected Territory. The Protected Territory does not extend to, and the franchisee may not advertise independently on the Internet or World Wide Web. The franchisor will maintain Sonoma Coffee Cafe web pages which may include information regarding the franchisee’s café.


Renewal and Termination: The term of franchise is 5 years and if the franchisee is in good standing they can add consecutive additional terms of 5 years. The renewal fee is $2,500. No Transfer Fee is required if the franchisee transfers the Coffee Cafe to a corporation in which they are the majority stockholder, or if they transfer the Coffee Cafe to their child, parent, sibling, or spouse. The franchisee must pay a Transfer Fee of $2,500 if they transfer the Coffee Cafe to another franchisee of Sonoma Coffee Café. In all other cases, the franchisee must pay a Transfer Fee of $5,000. Both the franchisor and the franchisee can only terminate the agreement with cause.

Obligations and Restrictions: Sonoma Coffee Café does not require the franchisee to personally participate in the operation of the Coffee Cafe. However, the Coffee Cafe must at all limes be under the direct, supervision of a manager who has satisfactorily completed the initial training course. Sonoma Coffee Café requires that the franchisee sell only those products and services that have approved in writing.


Total Number of Company Owned Units for 2006: 0
Total Number of Company Owned Units Opened for 2006: 0
Total Number of Company Owned Units Closed for 2006: 0

Total Number of Franchised Units for 2006: 0
Total Number of Franchised Units Opened for 2006: 0
Total Number of Franchised Units Closed for 2006: 0

Investment Table:
Estimated Initial Investment for Single franchise Unit:

Name of Fee Kiosk – Low Kiosk – High Inline Store – Low Inline store - High
Initial Franchise fee $25,000 $25,000 $25,000 $25,000
Deposit for Equipment, Cabinets and Furnishings $20,000 $20,000 $20,000 $20,000
Rent $2,500 $3,000 $5,000 $6,000
Leasehold Improvements and Construction $2,000 $6,000 15,000 $45,000
Equipment, Cabinets and Furnishings including installation $60,00 $60,00 $115,000 $115,000
Exterior Signage     $3,000 $4,000
Miscellaneous Opening Costs $1,500 $3,000 $1,500 $3,000
Opening Inventory $1,000 $2,000 $2,000 $3,000
Grand Opening Advertising $3,000 $3,000 $3,000 $3,000
Computer system, POS, ATM and Software $4,000 $5,000 $4,000 $5,000
Liability, Property and casualty Insurance Costs $40 $60 $70 $100
Additional Funds for initial 3 months $3,000 $5,000 $5,000 $7,500
Total $122,040 $132,060 $198,570 $236,600

Ongoing Costs for Single Unit Franchise:

Name of Fee Amount
Royalty Fee
4% of Gross Sales per month
Local Advertising
The franchisor suggest the franchisee spends 3°o of Gross Sales
National Marketing
1% of Gross Sales per location per month at a later date as determined by-Franchisor.
Initial Training for Additional Persons
$200 per person per-day
Additional Assistance at  Location
$500 per day (two day minimum) plus travel and living expenses
Transfer fee
$0 - $5,000
Lees for Lost Manual
Actual replacement cost
Interest
1% per month
Franchise Renewal Fee
$2,500
Insurance Policies
Will vary by location
Computer and Communications Equipment Upgrades and Maintenance
Varies

The above information has been taken from the UFOC/FDD of Sonoma Coffee Café.

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