Franchising FAQ
For more information or to discuss the next steps in becoming a Zarraffa’s Coffee Franchisee, please visit zarraffas.com/franchising or fill out our franchise enquiry form.
Getting started
What advice should I get before applying to become a Franchisee?
If you’re interested in becoming a Franchisee with Zarraffa’s Coffee, we encourage you to begin your own research by checking out the Franchise Council of Australia website and visiting several Zarraffa’s Coffee stores around both your local area and, if possible, the area that you’re interested in. We also recommend talking with current Franchisees and, of course, seeking your own legal, business and financial advice.
How long is the term of the franchise agreement and can this be negotiated?
The term of a Zarraffa’s Coffee Franchise Agreement is 10 years plus option terms.
What operational/business support is provided by head office?
Zarraffa’s Coffee Head Office will assign an Operations Support Team who will regularly visit your store to assist you with operational and business processes as well as any questions you may have.
There is also a dedicated Franchise Marketing Coordinator who will work with you to ensure you are receiving the best from your marketing investment and utilising all the marketing collateral and resources that are available.
Each quarter, there are Brand Advancement Workshops where Franchisees participate in an information exchange on matters such as the progress of the brand, upcoming marketing promotions, product innovations, new equipment, general business information and operational processes.
Additionally, the annual National Franchise Conference draws together all Franchisees with key members of the Zarraffa’s Coffee management team and external suppliers to reflect on each year and keep informed on the corporate vision for the year ahead.
I have no cafe or hospitality experience. Will that be a problem?
Not at all. While having some small business and/or hospitality experience would be beneficial, we provide comprehensive training with a Mentor Franchisee and Head Office Trainer as part of the franchisee onboarding process prior to the opening of your new store.
Do I have to work in the cafe?
Yes, we require at least one Franchisee to work a minimum of 50 hours in store. This will be reviewed after the first 12 months of trade.
Are there international franchising opportunities available?
Not at this stage.
Fees
What does the initial investment cover?
The initial investment covers the construction and fit out of your brand new Zarraffa’s Coffee Drive Thru including site fees, signage and permits as required.
What is the marketing fund and how is it used?
The Marketing Fund is comprised of fees that are paid by Zarraffa’s Coffee Franchisees to assist in the creation and development of national and local branding and marketing support activities. These include activities such as: major and minor brand promotions, printing, media, menu design, product research and development, PR opportunities and marketing innovations that add value to the brand, benefiting all Franchisees.
What are the ongoing fees?
Like most franchise groups, Zarraffa’s Coffee charges a royalty fee. This amount is 8% of your gross turnover paid on a weekly basis. We offer a compliancy discount of 1%.
Site Selection
Does Zarraffa’s Coffee assist with the site selection and the lease agreement?
Zarraffa’s Coffee has a project management team that works with our Franchise Manager to identify potential Zarraffa’s Coffee sites Zarraffa’s Coffee also has a property team who liaise with landlords for all leasing communications.
What if I already have a site in mind?
Perfect! Our project management team is happy to look at the site you have selected to determine if it meets the criteria we have set for our store locations.
Who holds the lease for a store?
Zarraffa’s Coffee holds the lease for the store and provides Franchisees with a license to operate the store under the Zarraffa’s Coffee brand.
What is the procedure for the construction of the site and the fit out?
The Zarraffa’s Coffee project management team coordinates all aspects of store construction and fit out including the internal and external design, council approvals and construction permits in conjunction with the Franchisee.
How long does it take a Zarraffa’s Store to open (new construction/fit out to trading)?
Depending on the site, it could take up to 12 months for a new Zarraffa’s store to be completed and ready to open its doors, pending external factors such as environmental or engineering approvals and finalisation of the Franchise Agreement.
Am I able to secure a site in or attached to a shopping centre?
In order to deliver our customers better convenience, the business is now focused on our Drive Thru concept, rather than fixed stores within a shopping centre environment. Some of our Drive Thru businesses are located within car parks of shopping centres, by themselves or alongside fuel operators for ease of access. We are also looking to open more Drive Thru Only stores and offer these at a lower entry cost for franchisees.
What happens if the lease term is different to the franchise term?
The initial franchise term for a ‘greenfield’ site will align with the initial lease term.
What is a ‘greenfield’ site?
A greenfield site refers to a brand-new construction for the purpose of operating a Zarraffa’s Coffee store. Everything in the design and construction is shaped around the functionality of the store from both a brand and customer level rather than taking an existing store and refitting it for our purposes.
Application and Training
What does the application process involve?
Once you have filled in the enquiry form on the website, the Franchise Manager will be in touch to further discuss Franchising opportunities, answer your initial questions and commence the interview and application process. The length of time it can take from the initial enquiry to an approval can vary depending on site availability.
Can I talk with current Franchisees?
Absolutely! In fact, we encourage you to do so as nothing speaks louder than the testimonials of our current Franchisees!
How is the training structured?
For the best start possible, Zarraffa’s Coffee offer 600 hours of training, generally completed over a 12 week period in a Mentor Franchisee store prior to your store opening. There are also customisable training options available depending on individual circumstances. The Franchise Manager will be able to assist in determining the right training program for you. Training will cover Barista Basics, Business Principles, Food Safety, Customer Service, WH&S, Accounting and Marketing to name a few. Zarraffa’s Coffee training and operations support team will also assist you in store once the store opens.
What support do I have access to once the store is open?
Once your store opens, Zarraffa’s Coffee trainers will be working with you in your store for the first several weeks to assist with all aspects of the store operations and, most importantly, help you with any day-to-day questions or circumstances that may pop up once the customers are coming through the door! Ongoing support is provided by your assigned Operations Support team.
Do I need to be an Australian citizen to become a Franchisee?
Yes, you must be an Australian citizen to become a Zarraffa’s Coffee Franchisee.
Suppliers
Does Zarraffa’s Coffee provide Franchisees with supplier contacts?
Throughout the training period, the Zarraffa’s Coffee training team will assist Franchisees with credit applications for our suppliers as well as liaising with suppliers on the franchisee’s behalf during the training period.
Can I make suggestions for drinks, food and merchandise to sell in the store?
We welcome it! Zarraffa’s Coffee holds regular working groups that act as Franchisee advocate groups to collect ideas for operational, marketing and product innovations. Each working group has two Franchisee representatives who discuss opportunities with the larger Franchisee group in order to best represent the entire brand and bring about ideas and innovations to improve all parts of the business.
Finance
What options do I have for financing a Zarraffa’s Coffee franchising opportunity?
There are many financial options when it comes to financing your franchisee journey. Zarraffa’s Coffee are also accredited with ANZ, Westpac and CBA and these banks may be able to loan up to 50% of the purchase price.
What sort of return can I expect from a Zarraffa’s Coffee franchise?
Each store and location are different to the next, so we are unable to provide you with any guarantees about the potential return on investment for your new store. However, as part of your application, we can provide you with the financial details of existing stores to help arm you with an idea of what other Franchisees have experienced with their stores.
Can I sell my store if needed?
Absolutely. Our Franchise Manager can work with you to determine the best way forward with putting your store on the market for the best value.
How much working capital should I have available over the initial investment?
We recommend that new Franchisees have at least $50,000 in working capital to assist with the day-to-day expenses and sundries that may pop up during the first few months of operation.
Is there a Deposit payable?
Yes, there is an application deposit of $20 000 payable once you have successfully completed the application process, which includes a site being available and completion of a two-week trial. This deposit is refundable should the franchise not proceed.
Why are existing stores priced differently to a new site?
There are many factors that are considered when listing the price of an existing store compared to a new site construction. These factors include financial returns, length of the lease and the length of the franchise term.