21.08.2019-801 views -Second Cup Business
Daniela Agudelo Sarcos
February twenty-eight, 2014
Information of the Franchise:
Second Cup Ltd started out in 1975 as a little commercial chain selling only whole bean coffee. Today, Second Cup is one of the top rated coffee stores in Canada, offering fair-trade and organic coffee and tea although providing humanitarian support in much less developed countries. Second Cup has three hundred and fifty cafГ©s all across Canada while seen about Secondcup. com and is the other largest sequence to this date. Competitive Environment:
Second Cup is normally in competition with brands such as Starbucks and Tim Horton's. Although these two brand names are extremely well known, Second Glass Ltd isolates themselves from the other retailers by simply producing espresso that is entirely equitable and according to Second Cup's website Secondcup. com, you can actually coffees are also Rainforest Cha?non Certified, Fair Trade Accredited and OCIA Certified Organic. Second glass is part of a monopolistic competition, since there are many different brands/sellers that offer a similar product, nevertheless there is a level of differentiation in the products. Exterior Environment:
Second Cup companions with many humanitarian education organizations, like the Rainforest Cha?non, Ethical Tea Partnership, and Free your children; these companies permit Second Cup Ltd to provide coffee and tea that is organic and fair-trade. While using growing concerns that the foodstuff industry has created, consumers are challenging to know exactly where and how the food and beverages they take in are created. Therefore , Second Cup responds towards the communities' socio-cultural interests simply by valuing in which their substances come from, whether or not it is more expensive for them. The corporation is active in the community getting into more than what is needed. Benefits Offered by the Franchisor:
When ever consulting Secondcup. com, a single benefit which the franchisor provides the franchisee is usually that the company needs that all long term franchisees develop a mandatory teaching that endures 6 weeks. This gives the franchisee the mandatory base to operate a business successfully. An additional benefit that the franchisor provides is that Second Cup can assist in loan requests to the financial institution. This makes it easier for the franchisee to receive financial aid because the company currently has an founded financial record. A third advantage offered is that the Second Glass Real Estate division selects physical locations pertaining to the franchisee, handles most negotiations, and does not charge a mark-up on the leases. This is certainly beneficial for the reason that franchisee does not need to worry about legal matters relating to rent. Requirements for the Franchisee:
Financial information presented on Secondcup. com says the economical investment features a $40, 1000 Franchise Charge that begins the 10-year contract that franchisees happen to be obliged to agree to. The financial requirements include using a minimum of $150, 000 in liquid assets together with a net worth of at least $450, 000. Franchisees ought to build the cafГ© as well; the cost to generate varies between $300, 000 and 550 dollar, 000. Dispenses must have a good credit rating including least $30, 000 in working capital. The continuing royalty payment is 9%, with a 3% advertising payment. Second Cup requires that possible individuals have past-experience in business administration; they also need that the prospects be progressive in for least one of Canada's official languages. SWOT Analysis from the Franchise and Opinion:
Strong points (Internal):
One of Second Cup's advantages is that they happen to be known across Canada for his or her strong faithfulness to contemporary society, both here and overseas. On their website Secondcup. com, the organization proudly brings up their eyesight throughout their website, stating that their association with known fair trade and organic and natural coffee/tea agencies is their number one priority. They are able to differentiate themselves from other coffee chains since other competitors do not follow this trend. Another durability this company offers is the...
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