It?s really not hard to figure out which franchises will be the most successful. You see them advertised on television and on billboards, hear them advertised on the air, and cannot drive through a shopping center anywhere in the US without passing one or more of them.
Not only have you any idea who they are, you likely have been in a number of them so many times that you know exactly what they need to offer. These franchises, put simply, have succeeded wildly in branding their products. What exactly are they?
Franchise restaurants, needless to say. Anybody borne after 1955 probably cannot remember a world where McDonald?s didn?t exist, plus they were only the beginning. Should you be one of the millions of people thinking about breaking from the nine-to-five routine and starting your own business, you can do much worse than a franchise restaurant.
Why? Because given the choice of trying to establish a loyal customer base for a new, unfamiliar product of your own choosing, and going with a restaurant franchise with food already familiar and which can keep the customers returning, the odds are definitely on the side of the franchise restaurant.
The Pros and Cons
There are, of course, big risks in starting a restaurant of any sort. Only cave à vin who have a genuine love for the business usually stay with it long enough to generate a profit; whilst having a franchise restaurant may ease a few of the concerns, there are some realities you must face before you start.
First, buying a franchise restaurant can be quite expensive; they are able to include actually purchasing the land on which you’ll build your operation. You might be able to get help together with your financing from the franchisor, and banks also recognize that a restaurant franchise is among the less risky smaller businesses, so may be ready to give you favorable terms.
On the positive side, you should have the advantage of selling only those foods which are proven moneymakers, so that you can limit your inventory, which is ordered from the parent company?s preferred suppliers. You as well as your company?s other franchisees in the area can share the costs of joint advertising. For more info see http://www.startfranchisehelp.com/Franchise_Broker/ on Franchise Broker.
On the downside, be prepared for extended hours at your franchise restaurant; as a franchisee you will have certain standards, both service and financial, to keep, and you’ll be giving regular reports to your franchisor. For those who have personnel shortages, your household members will have to fill the gaps.
You can almost depend on having personnel problems; low pay and unchallenging work can make it hard to help keep employees for extended periods. Restaurant employee turnover is incredibly high. But if you and your family are willing to provide you with the elbow grease, your chances of succeeding with a well-established franchise restaurant are much better than they would be in any business you could start.