Basic Licensing Questions

Q. What is licensing?
A. Licensing is an alternative to franchising our creating your own concept.  Under licensing programs individuals agree to use a copy writes and system protocols in exchange for  a fee and conditions outlines in a the license agreement.

Q. How Does The Coffee Prophet Brand Licensing Program Differ From Franchising?
A. Our Licensing provides you a complete brand solution with many of the marketing, branding and business growth mechanisms of a franchise without being highly regimented top driven franchise programs.  As one of our licensees, you retain the flexibility and control of your business and are not required to pay typical franchise royalties that range from five to eight percent of your gross sales.

Q. Why is licensing more practical then franchising?
 A. Unlike the Hamburger and Pizza Industries, there is not a single coffee chain with national presence so any competitive name recognition advantage of franchising is almost non-existent.
Q. Why Should I Choose Coffee Prophet’s Licensing Programs Over the other licensing programs?
A. The Coffee Prophets Brand Licensing Program is very different then other licensing programs because we set “standards” and help you position your business in your communities most favorable light through our experiential branding and professional consistent marketing tools. Other licensing programs are designed to sell your beans, coffee and syrups at rates typically higher than you could achieve from your local vendors.
Q. Why Should I Choose a Coffee Prophet’s Licensing Program over just starting your coffee business
A. The perils and pitfalls start from scratch greatly undermine you potential for success.  Most individuals entering the coffee industry do not know- what they do not know and make all the traditional, unforeseen, unanticipated mistakes that often become seemingly unrecoverable and often fatal.
Q. DO I NEED PREVIOUS COFFEE HOUSE EXPERIENCE?
A. No. The Coffee Prophets Management Training System will train you with the required knowledge, skills and abilities to own, operate, manage and grow your business.  Our experience in management, leadership and coffee retailing operations outfits you with the skill sets necessary for success.
Q. MUST I PERSONALLY MANAGE MY STORE?
A.  No. We initially recommend in order for you to understand the daily workings and operational demands of your store to accept ownership and operational control of your store and later delegate the daily operations of your store to a Coffee Prophet trained manager.

Q. DOES MY LICENSE AGREEMENT HAVE A PROTECTED TERRITORY?
A. No, the Coffee Prophets offer each Licensee a First Right of Refusal in the event another potential Licensee wishes to enter a particular geographical market area. If the Senior Licensee chooses not to open a subsequent location to service the same general area, the new licensee may be permitted to open a store providing will has negligible operational impact on your location.  Note: Based upon our standards of design and performance the subsequent store will service to foster great name and brand recognition for your area. 
Q. CAN I SELL MY STORE AND TRANSFER MY LICENSE?
A. Yes. You can sell your store and The Coffee Prophets will sell a license to the new owner if they desire to operate under our Branded License Program name.  The new licensee will be required to undergo our three-day intensive course. Depending on the age of the store, the new owner maybe required to retrofit the location to current standards.
Q. WHAT TYPE OF LICENSE OPPORTUNITIES ARE AVAILABLE?
A. Single and Multi Unit licenses are available as well as International Licenses.
Q: IS THERE A RANGE OF MARKET ENTRY FOR LICENSING?
Yes, each brand has its own unique three tier pricing levels. Tier 1 is the entry-level tier with the standard look and feel package, using well-selected standard components an extremely high level of fit and finish for each brand concept.  Tier 2 is the mid-range finishing package that uses higher end finish components to include solid surfacing, upgraded seating and flooring options.  Tier 3 includes upgraded components include super automatic espresso machines, granite counter tops, and some customized detailing to include fireplaces, water features and other special elements of design.
Q. HOW LARGE ARE THE BRAND STORES?
A. The typical size of a Brand License Program varies from 1000 to 1500 square feet.  Factors such as demographics, location and operational environment will help determine each sites optimum size.

Q. HOW DO I SELECT THE RIGHT SITE?
A. The Coffee Prophets Team will help, direct and assist you in your efforts to find and negotiate your lease.  Upon request, we can travel to your location and provide assistance
Q. HOW MUCH IS THE LICENSE AGREEMENT?
A. A License fee of Five Thousand ($5,000) dollars per site.
Q. WHAT IS THE TERM OF THE FRANCHISE AGREEMENT?
A. The term of each license agreement is five (5) years.
Q. WHAT HAPPENS AT THE END OF THE 5-YEAR LICENSING TERM?
A. You may renew your license agreement, sell the business to a future licensee or disband your operation under the Brand License Program name.
Q. IS THERE A RENEWAL FEE FOR EACH ADDITIONAL OPTION TERM?
A. Yes. The Brand License Program Renewal fee for each site is $3,500.
Q. ARE THERE ANY ASSOCIATED ROYALTY FEES?
A. Absolutely not.
Q. ARE THERE ANY OTHER ASSOCIATED FEES
A. Yes. Three hundred dollar marketing cost, fifty-nine per month IT System Fee (POS/Security) fee and Thirty Nine Dollar per month web hosting and maintenance fee.
Q. WHAT IS THE ESTIMATED INVESTMENT FOR BRAND LICENSING?
A. The estimated initial investment required begins at $125,000 to $200,000. Minimum net worth requirements are not required.  Estimated minimum liquid cash is $50,000.

Q. Is FINANCING AVAILABLE?
A. Yes, based upon your credit history The Coffee Prophets works with over 30 banks and lending institutions nation wide.  We help you secure financing options ranging from Small Business Association Loans too competitive Leasing Options.  As a licensee, you will receive the added benefit of The Coffee Prophets experience as a substitute for both experience and start up concerns of most lending institutions.

Q. DO I have a set menu and menu flexibility?