Fox Hollow Coffee
Questions & Answers
Why should I buy a Fox Hollow Coffee franchise?
- Specialty Coffee is a rapidly growing, multi-billion dollar business within an industry that shows no signs of slowing
- We bring a variety of concepts including a neighborhood café, free standing drive-thru and kiosks
- Fox Hollow Coffee has a proven economic model that has helped many entrepreneurs enter and succeed in the specialty coffee industry
- The Fox Hollow Coffee team has years of experience in the specialty coffee industry
Proven concept and brand that is nationally accepted
- Complete building design plans, marketing plans, training procedures and operating systems along with sign packages
- Extensive initial and ongoing training program
- Ongoing support once your store is open
What is the initial investment?
On average our stores range between $199,000 and $404,000 nationally. There is great variation depending on the site selected.
What does it take to financially qualify?
Fox Hollow Coffee requires you have a net worth of at least $250,000 and minimum liquid cash of $80,000 per location.
Do you offer third party financing?
No, you are responsible to secure financing for your location. Typically a financing source will require 30% cash injection by you the franchisee.
What is your franchise fee?
First time agreements are $25,000.
Is there a franchise renewal fee for each additional term?
Yes. The renewal fee is currently $2500 for each additional option term and will not exceed two thirds of the franchisee fee.
What is the term of a Fox Hollow Coffee franchise agreement?
The term of the franchise agreement is 10 years.
How much is the royalty fee?
The continuing royalty fee is 4 %.
What are the Advertising costs?
Fox Hollow Coffee recommends the Franchisee spend 2-4 % on advertising and promotion but there is not a percentage collected by Fox Hollow Coffee.
How long has Fox Hollow Coffee been in business?
The founders of Fox Hollow Coffee have been in the specialty coffee industry since the late 1980’s. Fox Hollow Coffee was established in 1998
How much could you make running a Fox Hollow Coffee Franchise?
Franchises are tightly controlled just like publicly traded stocks. As a result we cannot provide estimates as to the profit potential from a Fox Hollow Coffee franchise. At your meeting with a Fox Hollow Coffee representative, where a UFOC will be offered, you can discuss that question and you will be directed to sources for this information.
How long will it take to open a Fox Hollow Coffee?
If all depends on where you are in the process. Often times selecting the site can take quite a while. If you have a location selected it takes approximately 6 to 9 months.
What is the average size of a Fox Hollow store?
The freestanding drive-thru building is just under 500 SF and the café is 1000 to 1500 SF.
How do I find a location?
Fox Hollow Coffee and / or a designated party will assist with the site selection process. You will find that local commercial real estate brokers will be a critical part of your site selection. You will be provided a list of site selection criteria and work sheets based on our site selection experience. Once potential locations are selected Fox Hollow Coffee must approve of the site. Typically you will operate out of a leased space in commercial developments in local shopping centers. Freestanding drive-thru locations typically are leased land in a development with excess space.
How do I learn how to run my store and how do I maintain quality?
Fox Hollow Coffee has developed systems and operating procedures that assist you in running your specialty coffee retail business. These systems are designed to give you the benefit of years of experience in running your operation. Systems are in place to maintain standards for quality and customer service. All this information is provided to you in your Fox Hollow Coffee Operations Manual.
What happens once my store opens?
Fox Hollow Coffee provides ongoing support in training, operations, and marketing through store visits, and personal consultation with the founders and managers of Fox Hollow Coffee.
Can I sell my Fox Hollow Coffee Store?
Yes. You can sell your Fox Hollow Coffee store is your own business and you retain all the profits and rights associated with your selling business. You may sell your business and transfer your franchise with our prior consent.
Do I need coffee retail experience?
Previous retail experience is helpful but not retail. This is a retail business and will require management and supervision. Fox Hollow Coffee and its staff will provide you training and guidance based on their extensive coffee retail experience.
Does Fox Hollow Coffee require me to personally manage and operate my coffee retail store?
We find that an owner-operated store is more profitable and runs more smoothly. You may assign day-to-day operations to a manager once Fox Hollow Coffee has trained them. As the owner of the franchise the manager will remain under your full time supervision.
Where do I purchase my products and supplies?
Many products are purchased from local and national suppliers approved by Fox Hollow Coffee. All coffee and coffee products are purchased by a suppliers designated by Fox Hollow Coffee. These products have been developed for us and are proprietary to Fox Hollow Coffee.
Are there restrictions on the products I am allowed to sell?
Fox Hollow Coffee has some products that you are required to sell and other that you are restricted from selling. However, you do have the flexibility to sell some products of your choosing provided Fox Hollow Coffee approves them in writing. Our menus have been designed to maximize your profit potential.
I am interested in a Fox Hollow Coffee Franchise, what are my next steps?
- Review the Fox Hollow Coffee web site
- If you meet the financial qualifications complete an online franchise application.
- We will review your application and schedule a phone consultation where we will answer any of your questions. We will also provide you with a Uniform Franchise Offering Circular (UFOC). The UFOC is a disclosure statement, which details your rights and obligations if we were to enter into a franchise relationship together.
- After your review of Fox Hollow Coffee we encourage you to travel to Seattle Washington where you will tour our roasting facility, visit some stores and give you a chance to taste our coffee and other products.
- Following your visit we will notify you of our decision to award you a franchise at which time you will finalize your franchise agreement and return the agreement to us with the franchise fee.
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