Franchising is the fastest way to help brands, including café chains, to increase coverage. In Vietnam, numerous café chains reported soaring outlet numbers thanks to this model, including Highlands Coffee, Cong Caphe, and E-coffee.Franchising allows investors to access established brand names and open café chains in Vietnam, including café chains. Franchise fees go from VND millions to billions. Newswire FnB Vietnam clarified the franchise fee for numerous café chains in Vietnam.
Launched 20 years ago, Highlands Coffee is one of the most successful names in the local coffee and franchising scenes. Highlands Coffee established its brand at the high-end segment, thus charges a franchise fee much higher than the average competition, with stricter rules to comply with.
The initial franchise fee: VND3.5-5 billion ($152,173-217,391).
The monthly franchise fee is 7 per cent of the monthly profit.
The management fee is 5 per cent of the monthly profit.
The theme and ambience of Cong Caphe outlets bring to mind Vietnam’s subsidy period. Cong’s name is synonymous with a retro experience in today’s busy world. Every Cong Caphe in the city boasts a different design without derailing from the military-green colour that has helped elevate its brand to stand on par with Starbucks among Hanoi’s youth. Almost always an instant success wherever they open, the chain has a broad loyal clientele and covers a large area of Hanoi.
At present, the chain owns 50 cafés in Vietnam and three more aboard.
The franchise fees of this chain depend on location. The monthly franchise fee is also calculated basing on the percentage of monthly profit of each shop, but the company website discloses no further information or actual figures.
The first Milano café was opened in Ho Chi Minh City in late 2011 and the chain grew to 1,045 units in 2017as reported by Euromonitor. This café chain is popular for its affordable prices and great ambience.
The initial expenditure for a Milano café is VND90 million ($3,913), including the franchise fee, setup, land rental, hiring, and materials.
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