F.A.Q

License Application

Q: I see that you sell licenses.  How is that different from a franchise?

A: The main difference is in the amount of money you get to keep from your store's sales. Franchises typically charge 5% - 15% in ongoing royalties. With an Octane Cafe License Agreement there are NO ROYALTIES! The money you make is yours to keep.

Q: What does a Octane Cafe license cost?

A: Our license fee is $20,000 + $6,000 for our training and consultation fee.

Q: What is the term of the license?

A: The license is renewable annually @ $1,000 /location.  

Q: What is the charge if I want to open an additional location?

A: Each additional location costs $7,500.

Q: Is there a charge for continuing services?

A: When an Octane Cafe license is purchased, you become a member of our family. We continue to consult on issues that come up for the term of your license agreement. Your $1,000 renewal fee keeps your license in good standing and affords our expertise, ongoing consultation for your business.   

Q: Is there an advertising fee?

A: No. Currently individual owners are responsible for providing targeted marketing and advertising for their business.

Q: What is the anticipated total investment to open my own Octane Cafe?

A: Each location will have it’s own unique characteristics and requirements and there are a variety of options available for a good location. That being said, typically the total cost to open a location will run from $96,000 to $286,000, including the license fee and the training/consultation fee.

Q: What is the ideal size shop for a Octane Cafe?

A: Locations can vary from a self-contained walk-up counter to a stand-alone
store front on a busy intersection. A target location, which will enable you to have adequate seating and production space would ideally be between 1,000 sq. ft. to 2,000 sq. ft.

Q: Will Octane Cafe help me find my location?

A: Our development team members are experts in helping you find the location that will give you the best opportunity to succeed.   

Q: Does Octane Cafe provide training and where does the training take place?

A: We travel to your store to train you in the environment you will be working in. Our training program is an important aspect of our development team’s responsibilities and the only way we can be sure to achieve our high standards of quality consistently, from location to location.

Q: How long does it take to open a Octane Cafe?

A: Once a lease has been signed, it typically takes between 90 – 120 days before you can open the doors for business.

Q: Is experience in the food and beverage industry required?

A: While small business experience is helpful, it is not required.

Q: Am I required to run the day-to-day operations of my shop?

A: You are not required to run your store; however, successful stores are those operated by the owner(s) or an experienced restaurant manager.

Q: Where do I purchase the products sold in my Octane location?

A: To insure quality, consistency and uniformity for all our locations, all products are purchased from our designated suppliers. Many products are proprietary and have been exclusively developed for Octane Cafe. All other products are purchased from national or local suppliers in accordance with Octane Cafe’s standards and specifications.

Q: Will Octane Cafe help me secure financing?

A: Yes. When you purchase a license, we will give you a sample business plan and financial projections. Any bank or lending institution will require a business plan and financial projections before they approve your loan request.

Q: How much money can I expect to make?

A: Octane Cafe does not predict sales or profits for any location. Profitability is based on many variables such as location, visibility, traffic flow, area demographics and the individual owners ability to manage the day-to-day operations and finances.

Q: I think I read someplace that Licenses are being offered for a limited time, what is that about?

A: We are in the process of changing our corporate structure over to a franchise. Once the change over is complete, we will no longer be selling licenses.

Q: When does Octane Cafe anticipate this change over to occur?

A: We have the wheels in motion but the process does take some time. We are planning to change on a state-by-state basis. Keep an eye on our website for updates.

Q: Once the conversion from your current license model to your franchise model has taken place, what will that do to the existing licensed shops?

A: As long as your license continues to be in good standing (i.e. it is renewed annually) a license owner is bound by the terms of the license agreement. Regardless of whether your state becomes a franchise state, your license will remain as it was when originally executed. License owners will never be required to adhere to the guidelines of the franchise. However, we will be offering a conversion package for licensees wishing to convert to the franchise model.  That’s why NOW is a great time to come onboard and take advantage of our Royalty-Free license program.

Q: I’m ready for my own Octane Cafe, what is my next step?

A: Complete and submit our License Application Information. Upon review, a representative from our sales department will be in contact with you and will send you a License Agreement for your consideration.  Please do not hesitate to contact Sam Eells at (216) 391-4780. The link for our application information is: here