SELECTING THE LOCATION

Java Times Caffe Real Estate Division constantly scouths for new sites, which can range from a modest 200 sq. Ft. To in excess of 1,200 sq-ft.  We select locations in prime high-traffic areas of major shopping malls, multi-use complexes, neighborhood strip malls, entertainment developments, and residential neighborhoods, Because of the diversity of locations, none Java Times Caffe stores are identiacal.  A Java Times Caffe location may be a kiosk, an “in line” store, or a full-size retail store, depending on how to best serve the local clientele.

Each potential site is carefully examined and analysed for market potential, demographics competition, customer profiles, local retailer or tentant mix, and pedestrian and vehicular flow counts.  If the site meets our rigorous standards, Java Times Caffe negotitates terms of the Head Lease with the landlord.  We then sub-lease the premises to an approved franchisee

 

DESIGN AND CONSTRUCTION
In all locations, Java Times Caffe coordinates the store layout and design, and supervises the process through construction, fixturing, and equipment installations.  Elegant, sophisticated, and designed for efficiency.  Java Times Caffe locations provide an experience thaht brings guests back again and again.  Stores are built to design and standard specifications and are constructed within 60-90 days.  Once construction is complet.  Java Time Caffe fully mercandises the store prior to opening for business.
The mechandising is distinctive, tasteful and unmistakably Java Times Caffe, always reinforcing the brand.

TRAINING & STORE OPENING
Consistent and outstanding service  relies on selecting the right franchise operators for each location, and equipping them with extensive training and ongoing support.  For this reason, we require you to successfully complet Java Times Caffe three-week intensive training program before you take the reins of a Java Times Caffe  franchise.
 
You’ll receive instruction on all areas of store operations, forma a thorough review of the Operations Manual to hands-on training in our certified Training Store locations.  Included in the training program is an introductin to specialty coffee: its origins, taste components and varieties.  The program also addresses hiring and managing staff, local store advertising and promotional tools, accounting procedures, and delivering our commitment to outstanding guest service.Once your have completed the training and are ready to open, our Operations Group will also be there to guide you through those fist critical days of business.

ON GOING SUPPORT
Java Times Caffe franchisees receive ongoing support in all areas of business development: Human Resources, Training, Marketing, Operations and Financial Accounting.

TRACKING YOUR SUCCESS
We visit our franchisees regularly, and utilize our information systems to create detailed reports on their success.  This helps District Managers to set sales goals with our franchisees, and to guide them in performance and consistency.

KEEPING YOU UP TO DATE
Java Times Caffe keeps franchisees well informed of new developments, marketing and promotions information, and operational tips.  Our support staff meet with franchisees on a regular basis to discuss new product development, store design, equipment enhancements, promotional opportunities and other relevant issues.

We also hold Coffee Knowledge Clinics and Espresso labs at our corporate office on a monthly basis, to assist in  the ongoing training of franchisees and their staff.

PROMOTIONS AND ADVERSTISING
Suring your fist week of training, you will meet with our Marketing Department to review Java Times Caffe  Local Store Marketing Manual.  You’ll have Java Time Caffe resources to assist you in coordinating the marketing efforts for your “Grand Opening” and the first few months of business.

Throughout the year, Java Times Caffe provides an ongoing marketing program to assist in driving sales.  The promotional materials build upon Java Times Caffe brand equity, while high lighting special offers such as feature drinks and contests.  If you need additinal assistance with your local marketing needs, our marketing department is available to you.

PURCHASING
Java Times Caffe negotiates constacts with suppliers for the items required to operate your store.  You will benefit from competitive prices, reasonable minimum orders, and good credit terms.  These savings will help you to optimize your margins.

TRADEMARK USAGE
As a Java Times Caffe  franchise operator, you are entitled to use the Java Times Caffe  trademark, design and operating procedures.

THE JAVA TIMES CAFFE FRANCHISE – WHAT IT TAKES
Operating a Java Times Caffe location is excithing and rewarding.  Your hard work and dedication are essential ingredients, especially during the start-up perios.  Success demands continued personal involvement, consistent implementation of the Java Times Caffe system, and a commitment to marketing your Java Times Caffe franchisee in your local community.

Once your apllication is received and approved, there will be a series of three interviews.  Potential candidates must possess the following qualities in order to be approved as a bona fide Java Times Caffe franchise operator:

-You must have a passion for coffee.
-You must have a positive attitude, excellet communication skills, an outgoing personality, and most importantly, you must enjoy people and friendly converstions. 
-You must be self-motivated, confident and show the ability to work as a team member and work within the framework of the Java Times Caffe  operating system.
-You must be prepared to devote your full-time attention to the business on a day-to-day basis.
-You must meet the financial criteria.

THE ELEMENTS OF SUCCESS
The return you achieve on your frranchise investment depends on a multitude of factors including your store location, build-out costs, the amount of your investment equity, and your ability to build sales, develop a loyal customer base and manage business costs.  Java Times Caffe does not guarantee the results of any particular location since the franchise operator’s skills and effort are an integral part of the franchisee’s success.

The store proforma, discussed with you as part of your investigation of the Java Times Caffe opportunity, shows average results based on existing, mature Java Times Caffe sores and are intended to provide a general idiea of teh sales and expenses you might anticipate.  Java Times Caffe reccomends that you consult with an accountant to develop a complete overview of the franchise economics as they relate to your pesonal tax planning and financial goals.

INITIAL INVESTMENT & TOTAL PROJECT COST
The total cost of  a Java Times Caffe franchise will vary from location to location, but generally ranges between $84,500 DLLS and $183,000 DLLS This cost includes the franchise fee and construction costs.  The franchise operator is required to provide unencumbered cash equity estimated at 35% of the total cost.  Financing the balance of the purchase price is achieved through a bank business loan.

The following schedule provides a breakdown of the costs of a typical new Java Times Caffe  location.  Costs vary greatly with the location size and format, the design requirements of the landlord and municipal jurisdictions, the siteh preparation provided by the landlord, and the construction and equipment requirements for the location.  The breakdown of costs for a particular franchise location and the schedule for payment of these costs form part of the Franchise Agreement.

ITEM DESCRIPTION	LOW	HIGH
Franchise Fee	$ 26.000 DLLS	$ 26.000 DLLS
Design & Permitting	$ 3,500 DLLS	$ 8,000 DLLS
Leasehold improvements	$ 36,000 DLLS	$ 100,000 DLLS
Equipment & Smallwares	$ 30,000 DLLS	$ 45,000 DLLS
Furniture	$ 7,000 DLLS	$ 15,000 DLLS
Signage	$ 5,000 DLLS	$ 10,000 DLLS
Opening and Marketing	$ 3,000 DLLS	$ 5,000 DLLS
TOTAL	$ 84,500 DLLS	$ 183,000 DLLS

A WORLD OF QUESTIONS

How much is the initial franchise fee?
A one time fee of $26,000 DLLS

What does the franchise fee cover?
The franchisee fee covers the costs of site selection, lease negotiation, and initial training.  It also allows you the right to use the Java Times Caffe brand name and operating system

How much is the ongoing royalty?
5.5 percent of monthly gross sales.

1.5 percent of monthly gross sales Go to Ninos de café non-profit organization established to improve the quality of life for children and families that produce with much care Mexican Coffees that we buy, carefully roast and sale to great people around the world that enjoy this great coffees every day and are helping support Mexican Estate coffees.

How much is the advesting fee?
2.5 percent of gross sales

.5 percent of gross sales to help local community with there problems.

What is teh term of the franchise agreement?
The franchise agreement runs concurrent with the Head Lease.

What operating results can be expected?
Our expereience indicates that the financial results will depend, to a great extent, upon the efforts and the business ability of the franchisee.  It is also important to remember that some locatins take longer than others to establish regular customers.  Repeat business provides the
basis for significant sales growth.

Is prior experience necessary?
No, although relatedretail of food service exprerience is very helpful.

Does the franchisee need to be at the store every day?
Absolutely, it is our experience thath the store requires teh full-thime attention of the franchisee to ensure the best possible operating results.

Can a franchisee own more than one Java Times Caffe location?
Yes, provided that the franchisee has the financial and operatinal resources to do so, and has demosntrated the management  skills  necessary to take on the additional responsibilities.

What are the hours of operation?
A typical street-front Java Times Caffe is open 7 days a week form 9:00 am to 11pm.  In a mall or office building, the landlord establishes th hours of opeation.

Can  a Java Times Caffe franchisee sell the franchise?
Yes, subject to approval of the sale and the purchasing franchisee.

What’s the next step?
Once you have absorbed the information in this package, complete teh enclosed confidential appliation form and forward to Java Times Caffe via mail o fax.  You may also visit our besite at www.javatimescaffe.com to complete the application.  We will contact you within 24 hours of receipt or your application.