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 radio, and cannot drive through a shopping center anywhere in the united states without passing one or more of them.
Not only do you know who they are, you likely have been in a number of them so many times you know exactly what they have to offer. These franchises, basically, have succeeded wildly in branding their products. What are they?
Franchise restaurants, needless to say. Anybody borne after 1955 probably cannot remember a global in which McDonald?s didn?t exist, plus 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 can 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, needless to say, big risks in starting a restaurant of any kind. Only those people who have a genuine love for the business enterprise usually stick with it long enough to generate a profit; while having a franchise restaurant may ease a number of the concerns, there are some realities you should face before you start.
First, buying a franchise restaurant can be quite expensive; they can include actually buying the land on which you will build your operation. You may well be able to get help with your financing from the franchisor, and banks also realize that a restaurant franchise is probably the less risky small 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 you can limit your inventory, which is ordered from the parent company?s preferred suppliers. You and 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 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 will have to fill the gaps.
You can almost count on having personnel problems; low pay and unchallenging work will 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 likelihood of succeeding with a well-established franchise restaurant are better than they would be in any other business you could start.