Should I Invest In A Franchise?

According to the most recent survey by the British Franchise Association, a staggering 99.5% of franchises are successful (in comparison to just 50% of new start-up businesses), with 89% of all franchise units turning a profit, enabling the franchising industry to contribute more than £19 billion to the UK economy each year.

As a result, many people consider investing in a franchise - such as those offered by Cafe2U - when it's time for a career change.

But with so many factors to consider before taking the plunge, how can you be sure that becoming a franchisee is the right decision for you? 

We've compiled the top five questions that every would-be franchisee should ask themselves.

Can you afford it?

Whatever type of franchise you find most appealing, investing in it will require you to find enough money to cover both start-up and ongoing costs, with a Cafe2U franchise available for as low as £15,000.

Before you begin trading, you'll need to pay an up-front franchise fee to the franchisor for the right to use its brand name, logo and business plan. It also usually covers training, support and marketing.

An ongoing fee will almost certainly be payable too, such as a management or royalty fee to continue trading under the franchisor's brand. This will either be a fixed monthly fee or a percentage of your profits. You may also be expected to make regular contributions for ongoing promotion and marketing activity and, if you're required to sell the franchisor's products, you will also need to buy inventory.

Depending on the nature of the franchise, you may also need enough working capital to pay suppliers, staff, rent, insurance and utilities - as well as your own cost of living - in the interim before your business becomes profitable.

Are you passionate about your chosen franchise?

If you're not 100% interested in the industry in which your chosen franchise specialises, walk away. Not only will your customers and clients quickly pick up on your lack of enthusiasm, resulting in reputational damage to your business, but you're also more likely to lose interest in it in the long-term, which could conceivably cost you a significant amount of money.

Conversely, if you invest in a franchise you're truly interested in, your energy and passion for it will naturally come through, resulting in you offering a better product or service to your customers.

While the predicted earnings and the work/life balance being offered by your chosen franchise are important factors to take into account, if they're the only things that interest you about it, it's time to think again.

Have you done your due diligence?

The only way to ascertain your new business' chances of success is to get out in the area in which you want to operate and do some market research. Does the local community have the right demographics for your business? Is it crying out for whatever you have to offer? Or are there already too many businesses offering the same services in the area? 

At this stage, being thorough and patient is vital, so resist the temptation to sign on the dotted line until you can answer these questions and more. The more time you invest before you buy a franchise, the better your return on investment is likely to be.

Do you have the right skill set?

Familiarise yourself with what day-to-day life as a franchisee in your chosen field entails and make sure you're confident you have the personality, lifestyle and skills to make a success of it if you decide to take the plunge. 

Ask yourself questions like: 

• Can you deal with early starts and long days?

• Do you enjoy interacting with members of the public?

• Are you well organised?

• Can you handle any and all daily paperwork that may be involved?

• Will you be comfortable implementing the franchisor's procedures?

If you can honestly answer 'yes' to these sorts of questions, franchising could be a good fit for you. 

How will you spread the word about your new franchise?

In order to build interest, you'll need to advertise your new business before it launches, then continue to advertise it after it has launched, to ensure people know that you're there and what you have to offer.

Establishing a social media presence on Facebook and Instagram are advisable and you should also be prepared to put up posters, make and deliver flyers and advertise in local newspapers in order to promote your franchise too, especially if it isn't already a household name.

Cafe2U franchises are available.

Not only are they available, they're one of the best franchise options for 2025! In addition to a top-of-the-range electric van and an exclusive area in which to operate, all our new franchisees receive all the training and equipment necessary to get their businesses off the ground. We also supply them with all the ongoing support and marketing advice they need too.

If you're interested in investing in a Cafe2U franchise, we can even assist in arranging finance for you. For more information, click here.

Setting Your Franchise Up For Success.

The Paris Olympics are in full swing and, with Team GB currently sitting a respectable sixth in the medal table, we've taken a look at what we can learn from its sporting success and how it can be applied to our business to ensure we stay ahead of the competition.

Teamwork.

If you've listened to the winning Olympians' post-event interviews, you will have noticed that almost all of them emphasise the importance of teamwork, with their coaches, trainers, nutritionists and families often receiving special praise. What you won't have heard is an athlete claiming their success was down to them and them alone.

At Cafe2U, we know that, just like athletes, our franchisees can't succeed without support, so, in addition to providing them with a support network to cheer them on, coach them and challenge them, we also provide them with a comprehensive four-week training course to ensure they have the skills necessary to hit the road as a qualified mobile coffee business owner. From barista training to business processes training, our Franchise Development Managers are always there to help our franchisees reach the top of the coffee podium.

Confidence.

Just like athletes need to believe in their own abilities, entrepreneurs must be bullish about their chances of becoming the best. At Cafe2U, we assess potential franchisees to ensure our business is right for them, so when they start up their mobile coffee business, they can be confident that we have faith in them and will be there to cheer them on, no matter what.

Passion.

Why do athletes limit their calorie intakes and put their bodies through stress, pain and the risk of injury? Why are they constantly looking for ways to improve performance? Because they're passionate about what they do and they want to be the best at it.

The same is true of successful entrepreneurs. Setting up your own business is hard, stressful and demanding, and inevitably involves encountering obstacles. If you're not passionate about the thing you do, you won't be motivated to overcome those obstacles and you'll fail.

Fortunately, many people are incredibly passionate about coffee, including us. From our unique blend, which is sourced from some of the finest growing regions in the world and roasted by small batch coffee roasters, to the expertise provided by our barista trainer, passion goes into every cup of coffee you'll sell. 

Practice, evolve, improve.

In addition to determination, drive and focus, practice is the most important weapon in an athlete's armour, and the same is true of Cafe2U franchisees. 

Practice enables you to learn and expand your skill set, two abilities that are vital for any successful businessperson. Cafe2U has been on the road for more than 20 years and, although we know the coffee industry like the back of our hand, we're constantly creating new avenues for growth and keeping up to date with new trends so we can ensure our franchisees have the latest equipment and are familiar with any new changes in the industry. Our weekly newsletter also communicates new insights to our franchisees that help boost their bottom lines, whether it's news about new discounts that have been negotiated or ways to source weekend events. 

We believe there's no finishing line when it comes to improvement.

If you’re thinking about becoming a Cafe2U franchisee, find out more about the process here.

Tips For Starting Your Own Cafe2U Franchise.

Well over half a million people in the UK work in the franchising industry - circa 620,000 - and, in 2023, an astonishing 97% of franchisees turned a profit. Consequently, the number of people employed in the industry is expected to swell even further over the coming months.

If you're considering starting your own Cafe2U franchise, it's important to remember that there's a lot more to becoming successful than just identifying an opportunity you like the look of and handing over your money. Here are a few things to consider before you take the plunge.

Be passionate about your business.

This may seem obvious but if you're not really interested in the coffee industry, walk away. Not only will your customers and clients quickly pick up on your lack of enthusiasm, resulting in reputational damage to your business, but you're also more likely to lose interest in it in the long-term, which could conceivably end up costing you a lot of money.

On the flip side, if you're truly interested in Cafe2U, your energy and passion for it will naturally come through, resulting in you offering better service to your customers.

While the predicted earnings and the work/life balance on offer are important factors to take into account, if they're the only things that interest you, it's time to think again.

Customer service is vital.

When you launch your own franchise, you ideally want it to gain a good reputation, fast. However, in the age of social media and online reviews, poor feedback from customers can quickly break a business, so you need to remain friendly, knowledgeable and professional at all times.

If you can achieve this, not only will your customers keep coming back, improving your customer retention rates, it will also increase the chances of them singing your praises to their friends and colleagues. There's nothing better than free publicity, especially when it's positive!

Marketing and advertising are important too!

Speaking of publicity, you'll need to spread the word about your new franchise before it launches - to build interest - and once it has launched, to ensure people know that you're there and what you have to offer.

Establishing a social media presence on Facebook, Twitter and Instagram is a must, and putting up posters, making and delivering flyers and advertising in local newspapers are all effective ways of promoting your franchise too. 

Cafe2U franchises are available.

Not only are they available, they're one of the best franchise options for 2024! In addition to a Mercedes-Benz Vito premium van and an exclusive area in which to operate, all our new franchisees receive all the training and equipment necessary to get their businesses off the ground. We also supply them with all the ongoing support and marketing advice they need too.

If you're interested in investing in a Cafe2U franchise, we can assist in arranging finance for you and your personal investment can be as little as £15,000. For more information, click here.