It?s really not hard to figure out which franchises are 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 united states without passing one or more of them.
Not only have you any idea who they are, you have probably been in many of them so many times you know exactly what they have to offer. These franchises, in other words, have succeeded wildly in branding their products. What exactly are they?
Franchise restaurants, needless to say. Anybody borne after 1955 probably cannot remember a global in which McDonald?s didn?t exist, and they were only the beginning. When you are one of the millions of people thinking about breaking from the nine-to-five routine and starting your own business, you could do much worse than a franchise restaurant.
Why? Because given the decision of trying to establish a loyal customer base for a new, unfamiliar product of your choosing, and going with a restaurant franchise with food already familiar and which can keep the customers coming back, 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 kind. Only those who have a genuine love for the business enterprise usually stay with it long enough to create a profit; while having a franchise restaurant may ease a number of the concerns, there are several realities it is advisable to face before you start.
First, buying a franchise restaurant can be very expensive; they are able to include actually purchasing the land on which you’ll build your operation. You may be able to get help together with your financing from the franchisor, and banks also realize that a restaurant franchise is probably the less risky small businesses, so may be willing to give you favorable terms.
On the positive side, you should have the benefit of selling only those foods which are proven moneymakers, to help you limit your inventory, which will be ordered from the parent company?s preferred suppliers. You as well as your company?s other franchisees in your community can share the costs of joint advertising. For more info see http://www.startfranchisehelp.com/Franchise_Broker/ on Franchise Broker.
On the downside, be ready for extended hours at your franchise restaurant; as a franchisee you will have certain standards, both service and financial, to maintain, and you will be giving regular reports to your franchisor. Assuming you have personnel shortages, your household members will have to fill the gaps.
You can almost count on having personnel problems; low pay and unchallenging work will make it hard to keep employees for extended periods. Restaurant employee turnover is extremely high. But if you and your family are willing to provide you with the elbow grease, your likelihood of succeeding with a well-established franchise restaurant are better than they would be in any business you could start.