Baristas Coffee Company, Inc. (BCCI)

[BobSinCA]

Thoughts about franchise brochure, and BCCI franchise economics:

--- First, great that they have one.

--- But, 'attention to detail' a bit lacking:

- 'consumedper day,' instead of 'consumed per day'
- 'Turn Key' instead of 'Turnkey'
- 'Franchise provides' instead of 'Franchisee provides'

--- More substantively:

- 'financing assistance' missing from services provided. I can understand no company financing, but one would hope that BCCI could find third party financing. Though, maybe not a surprise -- they obviously have been unable to finance more of their own stores, even in Seattle/Tacoma, so they are losing market share (since they say this is a growing market).

- I don't understand the 'minimum investment' $50K. The franchise fee is $25K, and start-up costs are $100K (per the 2012 sponsored Prime Equity Research report).

--- Most importantly, prospective franchisees will look for economic proof points.

The company's Q3 financials show operating losses of $0.60 on each $1.00 of revenue -- and that's with BCCI management taking $0 in salaries. Franchisees will also have 6% royalty and 1% marketing fee on top of the expenses company-owned stores incur.