It?s really easy to determine which franchises are the most successful. You see them advertised on television and on billboards, hear them advertised on the air, and cannot drive by way of a shopping center anywhere in the united states without passing one or more of them.
Not only do you know who they are, you have probably been in a number of them so many times you know exactly what they need to offer. These franchises, in other words, have succeeded wildly in branding their products. What are they?
Franchise restaurants, needless to say. Anybody borne after 1955 probably cannot remember a global where McDonald?s didn?t exist, plus they were only the beginning. In case you are one of the thousands of people thinking about breaking from the nine-to-five routine and starting your own business, you can do much worse when compared to 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 proven to keep the customers coming back, the odds are definitely privately of the franchise restaurant.
The Pros and Cons
There are, needless to say, big risks in starting a restaurant of any sort. Only those who have a genuine love for the business usually stick with it long enough to produce a profit; whilst having a franchise restaurant may ease a few of the concerns, there are a few realities you need to face before you start.
First, buying a franchise restaurant can be very expensive; they are able to include actually buying the land on which you’ll build your operation. You may well 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 smaller businesses, so may be ready to give you favorable terms.
On the positive side, you will have the advantage of selling only those foods which are proven moneymakers, so that you can limit your inventory, which will be ordered from the parent company?s preferred suppliers. You as well as your company?s other franchisees in the area can share the expenses of joint advertising. For more info see http://www.startfranchisehelp.com/Franchise_Broker/ on Franchise Broker.
On the downside, be ready for long 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. If you have personnel shortages, you and your family members must fill the gaps.
You can almost count on having personnel problems; low pay and unchallenging work can make it hard to keep employees for extended periods. Restaurant employee turnover is extremely high. But if you as well as your family are willing to provide you with the elbow grease, your likelihood of succeeding with a well-established franchise restaurant are much better than they would be in any other business you could start.