The popular East Lansing-based Biggby Coffee franchise will
double its operations in the next two years. Biggby opened its first
franchise in 1999 and has 86 stores in 11 states, with 70 more stores under contract.
According to excerpts from the article:
Michael McFall, president of Biggby Coffee, said more
than a dozen potential franchisees come to the East Lansing headquarters for the
twice-a-month discovery days to learn more about opening their own Biggby.
He expects that the business will have 384 units by 2011
and be well on its way to becoming a national chain. His partners are the chain
founders Mary Roszel and Bob Fish.
Potential franchisees need to have a minimum net worth of
$400,000 with $100,000 of that in cash. It costs $250,000 to $350,000 to open a
store. The upfront franchise fee is $30,000.
Jimmy Giarraputo, 45, is part of a group of investors
that owns four Biggby Coffee franchises in metro Detroit. They are in Auburn Hills, Shelby Township,
Southfield and Royal Oak.
He expects to generate positive cash flow within two to
three years. The first store, in Shelby
Township, opened in
October 2006 and the group has plans for several more stores in the metro area.
"It's like any other business. You have to grow
them, nurture them," Giarraputo said. "I think the coffee industry is
almost recession-proof because most people need their coffee to get them going
in the morning."
He praised the Biggby Coffee team for guiding him and his
partners, who had no experience in the coffee business, to build their
operations.
Read the entire article here.
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