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Coffee News
Coffee News is a franchise that can be operated from a home office. Started by Jean Daum in 1988 in Canada, the franchise is now operating around Canada and within several US cities. Her idea was to create the most affordable advertising publication anywhere, that delivered outstanding results for the small and medium sized businesses who advertised in them.
Coffee News itself is a weekly publication that promotes small businesses in restaurants and coffee shops. There have been a number of studies that have proven that people are more open to advertisments while they’re eating, and while people are waiting for their coffee or meals to be delivered, it’s only natural that they’d read what’s right in front of them! The newsletter also delivers fun information, unusual news stories, horoscopes, jokes and entertainment- which is in sharp contrast to the regular newspapers and television news broadcasts which seem to focus on the bad news.
Coffee News franchise owners are not multi-level marketing representatives. The company believes that the individuals who do the work should reap the benefits. As a general rule, only the people who are in the beginning stages of a multi-level marketing organization make a lot of money; and Coffee News decided to create the business as a franchise opportunity rather than MLM.
When you become a franchise owner of Coffee News, you make advertising space available to the small and medium sized businesses within your community, at prices they can afford. Most new businesses, and those that are small, have difficulty advertising because the costs are usually outside their budgets. Coffee News makes it possible for these smaller scale businesses to get their name, products, and services in the hands of potential customers.
Restaurant and coffee shop owners love to provide the no-cost-to-them news to their patrons, it allows them to provide their customers with reading material without having to shell out money for daily or weekly newspapers. The franchise is a win-win situation for everyone involved.
When you become a business owner of your own Coffee News franchise, you can expect:
- An exclusive license to operate within your geographical area – meaning no other Coffee News franchises will be operating within your area.
- The ability to set the prices of advertising space in your Coffee News publication.
- A step-by-step manual for business owners that takes you from day one to successful operation of your own business.
- The ability to sell your license if you decide to stop your Coffee News business.
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Adam Mcgee on April 27th, 2008 2:36 am
This is really useful for starters like me who cannot afford advertising spaces. Too bad it’s just weekly.
Dana Keith on May 8th, 2008 12:48 am
Yes really useful, though it’s weekly but at least you able to advertise them. it’s a wiser way for a starter to promote such thing.
Jeff on May 14th, 2008 3:40 pm
It’s not just weekly, Adam. You always have the option to advertise quarterly or even yearly if you would like. Coffee News is one of the few franchises that you can get into with a fraction of the cost that other franchises charge. It’s the real deal.. not MLM or Amway. It’s a great way to spend the day working too.. meeting people, talking, and building relationships in your community. It’s not so easy that you don’t have to work a full-time schedule to reap the benefits at first, but as time goes on (distribution points are setup and advertisers take notice) you can spend less and less hours working it and make a substantial income. Better and less expensive than newspaper advertising!
Indianapolis on May 23rd, 2008 9:21 pm
True friends are those who really know you but love you anyway.
Darrell on April 11th, 2011 4:37 pm
I published Coffee News in Seattle for 5 years and had a very loyal following. You will hardly break even with this business, in the best economy, and the amount of time you put in is incredible!
I want to stress that I tried to sell my 5 editions for a very low cost, but got no bites. What is incredible is that I offered to give away all 5 editions to other Coffee News Publishers in the areas of Olympia, Bremerton, Federal Way, Sumner, Bonney Lake, Kent, and they did not want them! The package was worth about $150,000 total according to Coffee News Corporate HQ.
When I finally gave the franchises back to Coffee News USA for free, the last voice I heard in my mind was that of a very disgruntled Ex Coffee News Publisher in Kirkland, WA. He would always call me telling of the Coffee News franchise that was a scam in his opinion. All I remember is his anger with the whole thing. That guy always stuck with me throughout the 5 years I published Coffee News.
I only jumped on Coffee News as the concept seems so very simple:
1. Buy 5 franchises
2. Sell 30 ads per newspaper and make over $160,000 per year.
I was very happy to even get half of the above figure as I absolutely loved the Coffee News Newsletter. What you find, like all newspapers, magazine, etc. — it is very hard to sell enough advertisements to rise above your costs of printing, delivery, admin, taxes, and huge franchise fees. Furthermore, all vendors you pay in Coffee News, you pay weekly, while you only get your money on a monthly basis. In addition, Coffee News appeals to small business and not big business. Therefore, you are always chasing these small business for payment. These small business also do not understand advertising, so you are always churning through news small businesses every 17 weeks, the average advertising term.
I just can’t tell you how awful this business is. I say awful because it is such a benign little newsletter that EVERYONE loves, but every Coffee News Publisher is chasing the dream that they will be the first one to crack Coffee News profitability.
Also, the key concept with Coffee News is this: “Coffee News is a recession-proof business” This is quite wrong–yes, Coffee News might be a recession-proff business, but tell that to the struggling small business that cuts it’s advertising when in fact that should increase it.
I like old traditional saying, and find they have a lot of value. “Don’t plant your corn in July” is one of many. Well there is a saying that says: “Big risk, big reward”. Coffee News is not a big risk, so therefore neither is it a big reward. Just look at the hard figures. How can you buy a franchise for only $10,000 – $20,000 and expect to make $100,000 – $200,000 per year? A Quizno’s sandwich shop costs about $300,000 per location and the time investment from the owner is huge, not to mention the large exposure you have to hiring employees, dealing with real estate to house the business, etc. These folks make about $60,000 per year per location if they are lucky. Again, how can a Coffee News Publisher even hope to make $60,000 with such a small starting and ongoing investment?
Something else that I really can’t understand is this: Why are Coffee News Publishers so willing to talk with you for an hour, or more about how good the Coffee News business is? I’ve never seen anything like it: Call any Coffee News Publisher and ask them how their business is doing. They will talk with you, a complete stranger for an hour or more. Incredible. Now, try that with any other franchisee in the world…. They will surely ask who you are and that it is none of your business. Why is this?
Good luck to you, but please research this business thoroughly and under no circumstances weigh the opinion of a current Coffee News Publisher. The intangible benefits of this job like community leadership, networking, Coffee News Publisher fraternity, annual conferences, and the feeling of being a successful business overnight is worth the little bit of money you earn, if any at all! Once you are deeply engaged with this business, you will find a point where you will be unable to stop and risk looking like a fool by all those that said you would never make it hocking a little newsletter.
Jeff on April 12th, 2011 8:00 am
Darrell is spot on. I worked this with an associate for just over 6 months. If you read my review above from a couple years ago, my feelings have completely changed. My “associate” was trying to sell the business to me so I was being fed a whole lot of bull for months about the profitability and the advertisers. I was amazed at how the paper was always full of advertisers in my area. I thought I had struck gold! I was then given the offer to take over and I was almost hurrying to take over. But.. before signing, I took the initiative to go talk to the advertisers myself and make sure they were planning on sticking around. I found that they were being fed a “free trial” and most had no intention on sticking around! Most didn’t even know what they had signed up for as it was just a “free ad” as proposed to them. Needless to say, I was pretty furious at this other gentleman. He still assured me this idea worked and gave a long list of reasons why he did what he did. I agreed to try and “really” work it with him. We worked it for 2 months and he really worked hard (because he was wanting to unload it). I’m a pretty good salesman but advertisers don’t buy into this. It’s just that simple. I walked away.
I later found out he simply quit and gave the franchise back 3 months after this.
Simply create your own newsletter and use the same concept (keeping it legal). No $400/$500 a month franchise fees (what a rip!). Can you imagine the pressure of trying to pay that every month.. for “your” business?!
Take Darrell’s advice and do anything else. Coffee News is a scam and it’s no way to make $$.
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