Log In / Register | Feb 9, 2012

Village Coffee Offers a Non-Franchise Opportunity

 In an interview on FranBest Coffee, Tommy Lowery claims his Village Coffee license program provides lower fees, less markup and more freedom than its franchised coffee counterparts. 

In an interview on the FranBest Coffee Blog, Tommy Lowery claims to have founded the Village Coffee license program in part to give would-be gourmet coffee shop owners an alternative to coffee franchises he saw that marked up the products and supplies they sold to their franchise owners as much as 30% - 50%. 

Says Tommy:  "We only charge 10% over the distributor cost. This equates to an annual savings of $17,000 for an average Village Coffee licensee. A franchisee or licensee of our competitors would have to sell an additional $59,000 to make up for that $17,000 in additional mark-up. We’re trying to leave more of our licensees’ hard-earned revenue in their bank accounts, where it belongs."

Instead of the percentage of gross sales most coffee franchise companies charge, Village Coffee charges a flat $400 per month licensing fee. 

The Village Coffee licensing program also allows much more individual freedom in terms of store decor, buildout, decorating, and operational procedures than coffee franchises.

While the licensing program also provides less intensive support, more independent-minded entrepreneurs could find a licensing program like Village Coffee a happy medium between buying into a franchise system and going it alone.

Source: FRANBEST.COM/COFFEE

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