``They have stopped at every other cereal café in the country; they are studying the market, and they know what they want,'' he said.

If all goes as planned, the two parties could be signing a contract by year's end that would give the California investors the right, and obligation, to open Cereal Bowl stores along the West Coast.

FRANCHISING FRENZY

The Cereal Bowl isn't the only company trying to capitalize on the concept.

Industry front-runner, Chicago-based Cereality, launched its first store in 2003 and is on the verge of opening its fourth company-owned location in Illinois. Cereality, too, has been getting tons of good press - they're one of the case studies in Chicken Soup for the Entrepreneurial Soul and were recently featured on NBC's Today Show. They also say they are on the verge of going nationwide.

``Cereality is on plan on both the domestic and international front with its [franchising] goals,'' the company's PR agency said via e-mail. ``But [Cereality] is not reporting publicly the number of franchises sold or where they are located.''

A growing number of independent cereal cafes are eager to fill customers' bowls: There's Cereal Central near Ohio State University, The Old Cereal Box Co. in Richmond, Va., The Cereal Port Cafe in San Diego, Calif. and Cerealicious in Toronto, Canada.

CEREAL CASUALTIES

But if selling cereal sounds easy, keep looking:

A place called Bowls - A Cereal Joint in Gainesville was put on notice last year by both Cereality and The Cereal Bowl for potentially infringing on trademarks and patents. Despite receiving strong support from the University of Florida newspaper, it has since shut down.

The Surreal Bowl was was dishing up cereal and '50s kitsch in St. Petersburg until it lost its lease. The business has no published phone number but, according to its MySpace profile, it's searching for a new site.

LEGAL FLAK JACKET

As the cases above suggest, cereal territory can also be a legal minefield. Before The Cereal Bowl opened, it too was presented with an intimidating legal notice from Cereality warning it not to tread on trademarks. The Cereal Bowl fired back a missive and hasn't heard from its competitors since.

But the fear of legal action is always an issue in the restaurant industry, said Josh. And that's one reason the three entrepreneurs chose to work with lawyers from Carlton Fields. The Miami-based firm is pricier than others, but it has specialists in franchising law and the muscle to provide other services.

``It's a big firm with a name that brings a lot of credibility to what we're doing,'' said Josh.

``And if we ever get hauled into court, it's a firm that can defend us.''

CERAL SERIAL

This is the 12th installment in a yearlong series following the first year of a start-up business, The Ceral Bowl. The wrap-up report will appear in Business Monday in October.

MORE ABOUT FRANCHISES

For more information about starting or buying a franchise, visit the International Franchise Association at: www.franchise.org

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