High Point Coffee Forms Licensing Company to Take Store Concept National

November 10, 2006 – 2:47 pm

Memphis Business Journal
November 10, 2006

High Point Coffee, Inc., owner Thomas Blanche and business partner Jim Lane have formed a licensing company to bring the Memphis-area coffee house to the national market.

The goal of High Point Coffee Licensing, Inc., is to have 30 stores nationwide in 2007 and grow by between 30-50 stores each year.

Blanche opened his first store in Oxford, Miss., in July 2002. Since then, he has opened two locations in Memphis and another in Tupelo.

He also added a roasting and distribution facility in New Albany, Miss., which he is consolidating with the licensing and corporate operations into a new facility near Oxford.

Blanche believes his experience will help licensees avoid many mistakes.

“They can get into business and not have to go through everything I went through to try and develop this,” he says.

High Point Coffee, which employs 50 people, had $2.5 million in revenues in 2005.

“I’ve always had a desire to grow this business, but it became more apparent to me as I was going that it wasn’t going to be possible to do it on my own,” Blanche says.

That’s why he joined forces with Lane, who got his start in franchising and licensing with Burger King in the 1970s. He has also worked with Avis Rent A Car and the Disney Co.

“Thomas is an operations man: he knows how to run a store and I know how to sell the stores,” Lane says.

Lane and Blanche chose licensing over franchising because it allows business operators more independence.

“A franchiser can tell you what time to get up in the morning, what time you go to bed at night, what time you can open, everything,” Lane says.

Licensing lets someone use the name, systems and trademarks.

“But you’re not limiting what they can sell and things like that,” Lane says. “It’s a looser arrangement.”

It’s also cheaper. High Point’s licensing fee is $4,500 the first year and is paid at the end of the year. After that, the trademark fee is $3,000 per year.

“It’s peanuts compared to a $30,000 or $50,000 franchise fee,” Blanche says. “Most of the people getting into the coffee business don’t have the knowledge they need. Here, they’re getting the benefit of buying a franchise without the exorbitant franchise fees and the restrictions a franchise can place on them.”

The main benefit to High Point Coffee is that its roasting and distribution facility will be able to supply licensed stores.

“When you’re licensing, you’re creating new customers for yourself,” Lane says.

High Point Coffee is currently redesigning its logo, which can go on branded T-shirts, hats and other apparel in addition to the store fronts.

Blanche is not only expanding his business, he’s also improving himself thorough enrollment in a master’s program for executive leadership at Christian Brothers University.

“Every time I open a book, there’s an immediate application for what I’m doing and it’s wonderful,” Blanche says.

It’s also part of High Point’s expansion, where Blanche is always evaluating for better methods and procedures.

“Where we are today is not where we’re going to be down the road,” Blanche says. “In business in general, nothing ever stays the same. You’re either getting better or you’re getting worse.”

High Point Coffee Licensing, Inc.

Licensing company
Owners: Thomas Blanche, Jim Lane
Phone: (877) 505-0557; (662) 791-9791
Web site: www.highpointcoffee.biz
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