It?s really easy to determine 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 by way of a shopping center anywhere in the US without passing one or more of them.
Not only do you know who they are, you likely have been in some of them so many times that you know exactly what they must offer. These franchises, in other words, have succeeded wildly in branding their products. What are they?
Franchise restaurants, of course. Anybody borne after 1955 probably cannot remember a global in which McDonald?s didn?t exist, and they were only the beginning. If you are one of the thousands of people thinking about breaking away from the nine-to-five routine and starting your personal business, you can do much worse when compared to a franchise restaurant.
Why? Because given the decision of trying to set up 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 sort. Only those people who have a genuine love for the business enterprise usually stay with it long enough to generate a profit; whilst having a franchise restaurant may ease a number of the concerns, there are some realities you must face before you start.
First, buying a franchise restaurant can be extremely expensive; they are able to include actually buying the land on which you’ll build your operation. You could be able to get help together with your financing from the franchisor, and banks also realize that a restaurant franchise is one of 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, so 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 your community can share the expenses 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 up, and you’ll be giving regular reports to your franchisor. For those who 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 help keep employees for extended periods. Restaurant employee turnover is incredibly high. But if you as well as your family are willing to supply the elbow grease, your chances of succeeding with a well-established franchise restaurant are much better than they would be in any other business you could start.