Top Coffee Shop Franchises in the Philippines (2025)

Top Questions to Ask Before Choosing a Coffee Shop Franchise

Choosing a coffee shop franchise is more than just picking a popular name. It’s a financial and time commitment. You need to be sure the business model, support system, and product match your goals. Asking the right questions helps you invest wisely and avoid costly mistakes.

1. How much is the total investment—not just the headline price?

Some franchises advertise low starting fees, but the actual cost may be higher. Ask for a full breakdown:

• Franchise fee
• Equipment and machines
• Store construction or kiosk setup
• Initial inventory and supplies
• Staff uniforms
• Marketing launch budget
• Ongoing fees (POS, tech systems, etc.)

If the brand provides all-in packages, clarify what’s included and what’s not. Some packages may exclude electrical work, signage, or local permits—things you still have to pay for. Knowing the complete amount helps you decide if the franchise is within your real budget.

2. What kind of support do I receive before and after the store opens?

Training and support affect how well your store runs. Ask these specific questions:

• How long is the training and where is it done?
• Who conducts the training—franchise owner, staff, or a hired team?
• Is there help in choosing the right location?
• Do they help with construction or design?
• Is someone present during store opening?
• What kind of support continues after launch?

Brands that offer strong support reduce your learning curve. Some even help with delivery app registration, staffing, and local promotions. These add real value to your investment.

3. Are the products tested, consistent, and suited to my target market?

A good franchise has a menu that sells well across different locations. Ask:

• What are the best-selling drinks?
• Do the drinks appeal to students, workers, or families?
• Is the menu updated or fixed?
• Are ingredients sourced locally or imported?
• Can I try the drinks before committing?

You need products that people enjoy and buy repeatedly. If the drinks are weak or inconsistent, customers won’t return—no matter how good your location is.

4. Do I get to choose my own location, and what’s the approval process?

Your shop’s location directly affects foot traffic and income. Ask:

• Can I suggest a site, or does the franchisor assign one?
• Do they help scout and validate locations?
• What are the minimum space requirements?
• Do they allow locations in malls, terminals, schools, or near competitors?

If you’re limited to certain areas, your market may shrink. If the brand helps with site selection, ask how many options they give and how fast the process takes.

5. What are the terms of the franchise agreement, and are there renewal fees?

Many franchises have 3- to 5-year contracts. Ask:

• What happens at the end of the term?
• Can I renew? If so, how much is the renewal fee?
• Are there mandatory upgrades during the term?
• Is there a termination clause?

You should also check if the franchise includes territory protection or if other stores can open nearby.

6. Are there royalty fees, and how are they calculated?

Royalties reduce your profit. Ask:

• Is there a monthly royalty? If yes, how much or what percentage?
• Are there marketing contributions or brand fund fees?
• What happens if I can’t pay during slow months?

Some brands say “no royalty,” but charge other fees monthly. Make sure you understand all the recurring costs before signing anything.

7. What is the average return on investment (ROI), and what factors affect it?

You need a clear idea of when your capital comes back. Ask:

• What’s the usual ROI period based on existing stores?
• What’s the average daily sales of current branches?
• How much is the typical monthly expense?
• Are there seasonal dips or peak months?

Also ask: What’s the most common reason some stores close? This gives you an honest view of risks.

8. What makes this franchise better than others in the same category?

Let the franchisor explain their strengths. Do they stand out because of price, product, support, or branding? If they struggle to answer, that’s a red flag. A strong franchise has a clear selling point.

Don’t rush into a franchise just because it looks trendy or “everyone’s doing it.” The right franchise should be clear, honest, and aligned with what you can afford and manage. Asking these questions shows you’re serious—and it helps you choose a brand that supports your success.

Coffee Franchise Mistakes to Avoid

A coffee franchise gives you a head start, but only if you make the right decisions early. Many new franchisees rush the process, skip key steps, or rely too much on the brand name. These mistakes often lead to poor sales, delays, or unexpected costs.

Here are the most common errors—and how to avoid them.

1. Not studying the full franchise agreement

Many franchisees skip reading the agreement and just focus on the price. This is risky. The franchise agreement includes key rules that affect your daily operations and long-term income. Always check:

• Franchise duration and renewal terms
• Royalty fees or fixed monthly charges
• Restrictions on pricing, menu changes, or promotions
• Clauses on early termination
• Whether you get territory protection or if other stores can open nearby

Read every page. Ask questions. Clarify gray areas before signing. If needed, consult someone who can explain the legal terms clearly.

2. Choosing a brand without testing the product

Don’t assume the drinks are good just because the branding looks nice. Visit existing branches. Order top-selling drinks. Ask other customers what they like or dislike. If the coffee or frappe doesn’t meet customer expectations, even the best location and marketing won’t help you get repeat sales.

Product quality drives customer loyalty. If you’re not confident about the product, it’s better to keep looking.

3. Relying only on the brand name without checking support

A known brand can attract customers—but only in the short term. What keeps your business running is day-to-day support. Some franchisors offer full training, launch assistance, supplier coordination, and ongoing help. Others leave you alone after the contract is signed.

Ask how they help with:

• Location approval
• Store layout and design
• Staff training
• Inventory ordering
• Marketing materials and promotions
• Troubleshooting after launch

If the support system is weak, you’ll have to figure out everything yourself.

4. Ignoring location and nearby competition

A good product in the wrong location won’t sell. Some choose locations based only on rent, not foot traffic. Others open too close to schools or offices but forget to check if several similar cafés are already there.

Before signing a lease, check:

• Daily foot traffic patterns
• Proximity to schools, offices, terminals, or malls
• Nearby cafés offering similar drinks
• Visibility from the road or walkway
• Parking and accessibility

Your coffee shop needs both visibility and convenience. Customers won’t walk far for a cup of coffee unless your product is truly unique.

5. Underestimating daily and monthly operating costs

Many focus only on the franchise fee and opening cost. But success depends on managing daily operations. Rent, staff pay, ingredients, electricity, POS systems, delivery platform fees—these all affect your profit.

Ask experienced franchisees about:

• Average monthly costs
• Daily sales needed to break even
• Busiest and slowest days
• Seasonal sales dips (e.g., school breaks, holidays)
• If your expenses are higher than expected, it takes longer to earn your money back. Proper cost planning helps you survive slow months and sustain growth long-term.

Mistakes at the start can set you back months or even force a closure. Read all documents. Taste the product. Check the location. Ask about ongoing support. Plan for expenses. These simple steps help you avoid common traps—and give your coffee shop the best chance to succeed.

FAQs

What are the top coffee shop franchises in the Philippines that offer loyalty programs for frequent customers?

Hills & Valleys Coffee stands out being the top Philippine coffee shop franchise by offering a stamp card loyalty program. Customers who regularly purchase drinks can earn free beverages after a set number of visits. This encourages repeat business and builds strong customer engagement. Loyalty programs like this are ideal for locations with steady foot traffic such as schools, terminals, and city centers.

Which coffee shop franchises in the Philippines have the best reputation for customer satisfaction?

Hills & Valleys Coffee is widely praised for its friendly service, high-quality drinks, and aesthetic café interiors. The brand emphasizes personalized customer care and well-trained staff, which contributes to high satisfaction and frequent repeat visits. Its stores in Bulacan, Taguig, and Davao consistently receive positive feedback both in person and on social media.

Can you list the top coffee shop franchises that provide excellent training for baristas?

Hills & Valleys Coffee provides full barista training as part of its franchise package. Franchisees and staff are trained on:

• Coffee preparation using espresso machines
• Product consistency and quality control
• Customer service standards
• Store operations and workflow

Training is hands-on and guided by the franchise team to ensure every store meets the brand’s standards. This makes Hills & Valleys one of the top coffee franchises in the Philippines for those who want well-prepared staff from day one.