Which Coffee Shop Franchise Brand Is Good and Reliable? What Does It Cost to Open One?

"Young people don't know what to do for entrepreneurship? Join an XX coffee shop! Zero threshold, easy to start, effortlessly become a boss." Recently, the success story of one coffee brand's franchising drew this writer's attention.

Is Coffee Franchising Really That Easy?

Coffee entrepreneurship has grown more and more popular over the past year. Many young people exhausted by the workplace have begun to seriously consider starting their own business. For those with limited funds and no industry experience, though, entrepreneurship is far from easy.

As a result, coffee shops — which seem to require fewer technical skills, less overall investment, minimal management, lower work intensity, and to offer a relaxed, artistic life — have become the focus of many young entrepreneurs.

But while it looks easy, when it comes time to roll up your sleeves, many people do not know where to begin or how to promote the business. Coffee brand franchising therefore becomes a key consideration.

Is reality as simple as the promotional materials suggest? To find out, this writer examined several current franchise models.

Franchise Models for Well-Known Brands

① Have a storefront that meets the brand's area requirements, pay a franchise fee, submit an operational security deposit, cooperate with the brand's store renovation, equip the store as required, and use the brand's designated materials and menu.

② Have a storefront that meets the brand's area requirements, with zero franchise fee, submit an operational security deposit, cooperate with the brand's renovation, equip the store as required, and use the brand's designated materials and menu. The brand distributes profits through a gross-profit return model: all franchisee revenue goes to the brand, which deducts costs and returns a percentage to the franchisee.

Franchise Models for Lesser-Known or New Brands

① Have a storefront that meets the brand's area requirements, pay a relatively small franchise fee, submit an operational security deposit, cooperate with the brand's renovation, equip the store as required, and use the brand's designated materials and menu.

② Have a storefront that meets the brand's area requirements, with zero franchise fee, submit an operational security deposit, cooperate with the brand's renovation, equip the store as required, and use the brand's designated materials and menu. From the start of operations, the brand takes a percentage of the franchisee's revenue.

In Short

Franchises that charge a fee: store profits belong entirely to the franchisee, but franchise fees typically exceed 100,000 yuan.

Franchises with no fee: either all store profits go to the brand, which returns gross profit to the franchisee after deducting costs, or the store must share part of its profits with the brand.

The Biggest Cost Is Not the Franchise Fee

Store rent, security deposits, renovation, equipment, materials, labor, and utilities are all significant expenses.

According to our research, franchisees can choose their location but it must comply with brand requirements. Storefronts generally need to be at least 30 square meters. You can research the rent for qualifying stores in your area.

Security deposits: to protect the brand image and prevent franchisees from doing anything that harms the brand during operations, an operational security deposit starting at 10,000 yuan is required on joining. Generally, if no operational issues arise when the partnership ends, the brand refunds the deposit.

Store renovation typically splits into two parts: the brand, to keep its image consistent, approves the renovation design. The franchisee pays related design fees (starting at 1,000 yuan), and renovation is then calculated per square meter (starting at 20,000 yuan).

Store equipment: coffee machines, grinders, ice makers, water purifiers, refrigerators, and more. Based on current observations, the minimum equipment investment starts at 70,000 yuan (all domestic brands), with the highest reaching 100,000+ yuan.

Materials and supplies: the initial cost starts at 50,000 yuan, covering everything needed for store operations and drink preparation. Subsequent costs depend on the actual business situation.

Labor: whether you hire staff or not, even if the franchisee works alone, the minimum monthly cost is 4,500 yuan per person. Then there are utilities and miscellaneous expenses.

Setting Aside the Franchise Fee, What Is the Initial Investment?

A rough calculation shows that a coffee shop, from joining to opening — regardless of brand reputation — requires initial costs (excluding the franchise fee) of: 10,000 yuan for the security deposit, 6,000+ yuan for rent, 9,000 yuan for labor (one person cannot do everything), 1,000 yuan for design fees, 20,000 yuan for renovation, 70,000 yuan for equipment, and 50,000 yuan for materials and supplies, plus utilities — nearly 170,000 yuan in total. The franchise fee is added based on actual circumstances.

Are Franchise Products Profitable?

Many people choose franchising because franchise stores come with established production and sales processes and the brand's own traffic, so they assume business will appear immediately. In reality, because all materials are designated by the brand and product margins are fixed, franchisees earn very little profit.

What to Consider When Choosing a Franchise Brand

Look at the initial investment for a franchise store — excluding the franchise fee, that amount is enough to build a completely new coffee brand of your own. You also would not be bound by brand restrictions and could adjust product production and material costs more freely.

Yet franchising still attracts attention, which proves that many entrepreneurs have no clear concept of business operations and hope to learn through cooperating with a brand. When choosing one, pay attention to the following points:

1. Check the size and legitimacy of the company, and the credit status of its legal representative, brand founder, or owner.
2. The brand's longevity and stable reputation. Do not trust brands that have just started or suddenly went viral online — some look hot now and may disappear soon.
3. Whether there is a mature business model — not the kind that merely promises "the brand and franchisee will grow together."
4. Whether there is a classic, mature product line — not one that only chases whatever is trendy, but one that can adapt when those products lose popularity.
5. Read all contract terms carefully when signing, and watch for word games.
6. Remember to ask what other services are charged: POS systems, online operations, and so on.
7. Whether the brand provides timely, practical help to franchisees during operations.
8. There is no such thing as a free lunch — never be tempted by small bargains.
9. Record all conversations in audio format.

Final Thoughts

Entrepreneurship is not easy, and being a boss is not relaxing.

Whether you start your own coffee brand or buy a franchise, neither has a zero threshold, and neither lets you glide into being a boss. Being a boss comes with significant responsibilities.

Once you need to hire employees in particular, you must not only consider how to make the store profitable and how to turn customers into loyal clients, but also how to support, train, develop, and retain staff. These are not problems that solve themselves.

Being a boss is essentially a 24/7 job with no real breaks and no clocking off; you need to be available around the clock. After all, it is your own business, and you cannot help but worry about it.

We hope everyone thinks clearly before starting: why you want to do it, what responsibilities you will bear, and what problems you will face.

If readers have relevant entrepreneurship or franchising experience, please share and supplement in the comments.

Impulsive decisions are devilish; calm thinking is very important.

Images are unrelated to content and sourced from the internet.

FrontStreet Coffee Recommendation

If you are opening a shop, the bean lineup is where the real day-to-day cost lives — and it is also where you differentiate. For a value-driven everyday coffee, FrontStreet Brazil Cerrado Red Bourbon comes from Brazil's best-known growing region and offers creamy peanut, cocoa, and caramel with a soft, balanced, low-acid body; it handles pour-over, espresso, moka pot, and more, which keeps a menu simple.

For a second single origin with wide appeal, FrontStreet Washed Gedingding Cooperative brings jasmine, lemon acidity, and berry notes in a clean, approachable cup, while FrontStreet Sun-Dried Huakui leans into bold tropical fruit — strawberry, passion fruit, jackfruit, lychee — with high sweetness and almost no bitterness, a profile that converts customers who think they dislike coffee.

If you want to offer something more premium without going to estate-level prices, FrontStreet Queen Estate from Mogiana, Brazil, is a Yellow Bourbon with a sugarcane sweetness rare in the region, plus fruit and chocolate notes, and FrontStreet Boquete Washed Geisha brings the classic Panama Geisha orange-blossom honey character to a menu as a signature offering.