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Franchising

Independently owned. Uniquely Canadian.™ Second Cup is Canada’s largest specialty café franchisor and the second largest retailer of specialty coffee. Our Franchise Partners play a prominent role in the success of the Second Cup brand, and with our continued growth and expansion we are always actively seeking highly qualified business people to join our network of franchise partners.

BECOMING A FRANCHISE PARTNER:

Many people dream of owning their own business, but few understand the responsibility it carries. It requires a significant investment both financially and emotionally. But if you answer “Yes” to the following questions, you may want to find out more about becoming a Second Cup Franchise Partner.

  • Do you have retail or hospitality experience?

  • Do you have any management experience?

  • Are you business-minded?

  • Do you believe in a commitment to the development of people?

  • Are you ready to invest your time and energy in a café?

  • Are you fluent in one of Canada’s official languages?

Personality, People skills, Leadership Capabilities, Business and Management Skills, are all vital factors that will be carefully evaluated. If this sounds like something you would like to do, then we invite you to learn about becoming a Franchise Partner.

THE FRANCHISE PARTNER PROCESS:

The Second Cup Franchise Partner process is an 8-step process designed to ensure that potential Franchise Partners are informed, equipped, and trained to run a Second Cup café successfully.

Our selection process is built on years of experience in franchising. Our objective is to get to know you and assess your comfort level in becoming a franchise partner. We are looking for the right “fit” between you and our franchise family. This selection process will also help you gain insight into why we pride ourselves in selecting and supporting all our franchise partners. While each case is different, you can expect it to take 6 to 18 months to complete the process. The first step involves learning about Second Cup.

FINANCIAL COMMITMENT:

Understanding the financial commitment is crucial to the Franchise Partner Process. The following list outlines what you need to know about a Second Cup franchise.

GETTING STARTED:

  • A Franchise Fee of $40,000 is charged at the commencement of the 10-year franchise agreement. This fee includes project management, site selection, lease negotiation, training tuition, and opening assistance.

  • In addition, there is a cost to build the café. The construction cost for a new Second Cup café typically ranges between $300,000 and $550,000, mainly depending on the size and whether the location has a drive thru.

Minimum Financial Requirements

Liquid Assets* $150,000+
Net Worth $450,000+

  • Plus a good credit rating and at least $30,000+ in working capital. Please be prepared to provide proof of liquid assets* and net worth during the application process.

(*Liquid assets are cash or assets you have that are not tied up in any way and do not need to be repaid to anyone else.)

Our financial requirements vary by market, type and size of café.

  • You must secure your own financing. Second Cup does not provide any financing but will assist in your loan application.

ONCE OPENED AND OPERATING:

As part of your Franchise Agreement, each café is required to pay the following fees calculated as a percentage of gross sales:

  • 9% Royalty fee;

  • 3% Advertising fee towards the national cooperative marketing fund

FINANCING FAQs:

CAN I INCLUDE ASSETS HELD OUTSIDE OF CANADA?
No, your assets must be in Canada and you must be able to provide appropriate documentation to substantiate all assets.

WHAT IS MY RETURN ON INVESTMENT?
We cannot predict the ROI of any café as there are many variables that can affect the success of a business. Furthermore, in some provinces, we are bound by legislative restrictions which hinder our ability to provide financial forecasts or make any form of income claim. Accordingly, we provide no representations or projections of revenues, costs or return on investment.

WHAT IS THE BREAK-EVEN POINT?
As noted above, we make no income claims and each applicant must conduct their own due diligence. We do encourage all applicants to perform a thorough review and to seek professional assistance in this regard. If you feel confident about obtaining the necessary financing, your next step will be site selection.

LOCATION, LOCATION, LOCATION:
Another important element of the Franchise Partner Process involves the physical café location. The following outlines what you need to know about securing a location:

  • The Second Cup Real Estate department locates all sites.

  • You can see a list of current Franchise Opportunities and make your choice.

  • Demographic and other studies are carried out to determine the suitability of each site.

  • Second Cup handles all location negotiations and enters into a tenancy agreement with the landlord.

  • Second Cup sub-lets the property to the Franchise Partner under the same terms and conditions.

  • Second Cup does not charge a mark-up on the leases.

  • The franchise agreement is for 10 years and coincides with the lease.

We welcome your new site suggestions and you are welcome to submit them to realestate@secondcup.com. However, Second Cup reserves the right to determine the best Franchise Partner for each site and you are not guaranteed to receive the franchise for the site you suggested.

GETTING STARTED:

If you have reviewed the above information, the next step is to ensure you qualify:

ARE YOU A PERMANENT RESIDENT OF CANADA ?
 
WHAT CITIES OR OPPORTUNITIES ARE YOU INTERESTED IN?
CHOOSE CITY 1
CHOOSE CITY 2
CHOOSE CITY 3
WOULD YOU BE WILLING TO RELOCATE?
HOW MUCH IS YOUR TOTAL NET WORTH? (ASSETS LESS LIABILITIES)
HOW MUCH UNENCUMBERED CASH DO YOU HAVE?
ARE THE FUNDS HERE IN CANADA?
HOW MANY HOURS ARE YOU PLANNING TO WORK IN THE CAFE?
DO YOU HAVE ANY BUSINESS OR MANAGEMENT EXPERIENCE?
DO YOU HAVE ANY RETAIL OR HOSPITALITY EXPERIENCE?
DO YOU HAVE DIRECT EXPERIENCE WITH HIRING AND TRAINING EMPLOYEES?
DO YOU HAVE DIRECT CUSTOMER SERVICE EXPERIENCE?
IS IT YOUR INTENTION TO BE:
DO YOU PRESENTLY OWN A BUSINESS IN CANADA?
PLEASE NOTE THAT IF YOU OWN A CONFLICTING BUSINESS, YOU MAY HAVE TO SELL YOUR BUSINESS IN ORDER TO PURCHASE A CAFE