Signing out of account, Standby...
- 2022 Franchise 500 Rank
N/R Not ranked last year
- Initial investment
$284K - $540K
- Units as of 2020
2 0.0% over 3 years
Here’s what you need to know if you’re interested in opening a Magic Cup Cafe franchise.
Magic Cup Cafe is a drinks bar that offers a wide range of beverages, many of which are unique. The company was founded in Texas in 2014 and launched its first franchise in 2019.
Since beginning to franchise, Magic Cup Cafe has opened several units in the United States. It is seeking to expand its reach further throughout the United States.
Why You May Want To Start a Magic Cup Cafe Franchise
A Magic Cup Cafe is expected to be part of the local community that has a positive impact. The wide range of beverages that it offers is constantly evolving. Magic Cup Cafe uses ingredients from around the world. Magic Cup Cafe believes it offers a range of tastes that may suit the desires of everyone.
A Magic Cup Cafe franchise should encourage customers to take their time, relax, play board games, and hang out with old and new friends. It may offer a haven from the stresses of everyday life and build a community. They believe their unique atmosphere is where the magic comes from.
What Might Make a Magic Cup Cafe Franchise a Good Choice?
A Magic Cup Cafe franchisee doesn't need any experience in running an operation of this type. But, as you will see, Magic Cup Cafe franchisees need to have certain qualities that will allow them to further the company's aims. A franchisee will need to be a people person dedicated to creating a community within a community. They will wholeheartedly commit themselves to upholding the values that underpin Magic Cup Cafe.
To be part of the Magic Cup Cafe team, you should make sure you're financially ready for an initial investment made up of a franchise fee and other startup costs. In addition, you should prepare yourself for ongoing fees that will include advertising, royalty, and potential renewal fees. Franchisees will also need to meet the company's set net worth and liquid capital requirements.
How To Open a Magic Cup Cafe Franchise
As you decide if opening a Magic Cup Cafe franchise is the right move for you, make sure you take time to explore the opportunity. Research the brand and your local area to see if a Magic Cup Cafe franchise would do well in your community. While competition is healthy, too much of it may not allow for the most possible growth.
Before making any financial commitment or signing an agreement with Magic Cup Cafe, you must perform your due diligence and establish if this is the right opportunity for you. As part of your due diligence, you may want to speak to existing franchisees and ask the Magic Cup Cafe franchising team questions.
Magic Cup Cafe prides itself on the care that it takes of its franchisees. A franchisee may be considered to be part of the Magic Cup Cafe family and is often given full support at all times. A franchisee will benefit from a complete training program before opening their doors, potentially increasing their confidence that Magic Cup Cafe is always available to help.
About Magic Cup Cafe
- Related Categories
- My Lynn Nguyen, CEO
- Franchising Since
- 2019 (3 years)
- # of employees at HQ
- Where seeking
This company is seeking new franchisees throughout the US.
- # of Units
- 2 (as of 2020)
Information for Franchisees
Here’s what you need to know if you’re interested in opening a Magic Cup Cafe franchise.
Financial Requirements & Ongoing Fees
Here’s what you can expect to spend to start the business and what ongoing fees the franchisor charges throughout the life of the business.
- Initial Franchise Fee
Definition: The initial fee paid to a franchisor to join their system
What you need to know: Found in Item 5 of the FDD, this may be a flat fee, or may vary based on territory size, experience, or other factors.The franchise fee is an up-front (one-time) cost that a new franchisee pays to the franchisor. This fee is usually due at the signing of the franchise agreement and covers the right to use the franchisor's trademarks, name, and related business systems.
- Initial Investment
- $283,900 - $540,400
Definition: The total amount necessary to begin operation of the franchise
What you need to know: The initial investment includes the franchise fee, along with other startup expenses such as real estate, equipment, supplies, business licenses, and working capital. This is outlined in a chart in Item 7 of the FDD, showing a range of possible costs from low to high.
- Net Worth Requirement
Definition: The minimum net worth you must have in order to qualify to become a franchisee of this company
What you need to know: Net worth is the value of a person's assets minus liabilities. Assets include cash, stocks, retirement accounts, and real estate. Liabilities include items like mortgages, car payments, and credit card debt.
- Cash Requirement
- $100,000 - $150,000
Definition: The minimum liquid capital you must have available in order to qualify to become a franchisee of this company.
- Royalty Fee
Definition: A ongoing fee paid to the franchisor on a regular basis.
What you need to know: Most franchisors require franchisees to pay an ongoing royalty fee, which is detailed in Item 6 of the FDD. This fee is typically a percentage of weekly or monthly gross sales, but may also be a flat weekly, monthly, or annual fee.
- Ad Royalty Fee
Definition: An going fee paid to the franchisor on a regular basis to support advertising or marketing efforts.
What you need to know: This may also be called advertising fee, marketing fee, brand fund fee, and more, but the basic purpose is the same-- to support promotion of the brand systemwide. As with the royalty fee, it is detailed in Item 6 of the FDD, and can be a percentage of weekly or monthly gross sales or a weekly, monthly, or annual fee.
- Term of Agreement
- 10 years
Definition: The length of time your franchise agreement will last.
What you need to know: Franchise terms are typically anywhere from 5 to 20 years in length, but are sometimes instead dependent on factors such as the term of your lease. Once your term is up, you may have the option to renew your agreement, typically for a smaller fee than the original franchise fee.
- Is franchise term renewable?
Some franchisors offer in-house financing, while others have relationships with third-party financing sources to which they refer qualified franchisees.
- Third Party Financing
- Magic Cup Cafe has relationships with third-party sources which offer financing to cover the following: startup costs, equipment, inventory
Training & Support Offered
Franchisors offer initial training programs and a variety of ongoing support options to help franchisees run their businesses.
- On-The-Job Training
- 96 hours
- Classroom Training
- 14 hours
- Ongoing Support
Toll-Free LineGrand OpeningSecurity & Safety ProceduresProprietary SoftwareFranchisee Intranet Platform
- Marketing Support
Ad TemplatesRegional AdvertisingSocial MediaSEOWebsite DevelopmentEmail MarketingLoyalty Program/App
Additional details about running this franchise.
- Is absentee ownership allowed?
Definition: Absentee ownership means that the franchisee does not actively work in the franchise business or manage day-to-day operations.
- Can this franchise be run from home/mobile unit?
Definition: The business can be run from your home and/or a vehicle, and it is not necessary to have a retail facility, office space, or warehouse.
- Can this franchise be run part time?
Definition: This business can be run by the owner on a part-time basis (less than 40 hours per week) and/or as a side business; it is not necessary for the business to be open/run full-time.
- Are exclusive territories available?
Definition: An exclusive territory is a fixed area in which you are given the right to operate and in which no other units of the same franchise may be opened.
What you need to know: Territory size may be based on factors such as radius, population size, zip codes, and more. Details can be found in Item 12 of the FDD.
Are you eager to see what else is out there? Browse more franchises that are similar to Magic Cup Cafe.
Related Franchise Content
Catch up on the latest franchise news, trends, and more.
What started as a parking lot pop-up expanded to 67 locations in less than five years. Here's how Dave's Hot Chicken became one of the fastest-growing food chains in the country.
How does your personality compare? Do you like following rules or making the rules?
There's endless opportunity in kid-friendly startups.
Make sure the franchise you buy, and their marketing system, are worthy of your time and investment.
There are many ways to own a business that helps other businesses thrive.
The lifestyle that comes with a home-based franchise may seem carefree, but it's not for everyone. Here are five questions to ask yourself to see if this type of business is for you.