plays a significant role in the restaurant industry. According to the
US Census Bureau, nearly 54 percent of limited, or fast-food,
restaurants are franchised. Seventy cents out of every dollar of
fast-food sales come from franchised establishments. The 122,042
franchises mean that limited-service restaurants far outrank other
industries in franchising. Below are four reasons that you may
consider franchising if your entrepreneurial or professional passions
guide you to the restaurant industry.
Own and Operate With Name Recognition
A franchise brings the power of a nationally and otherwise well-known brand to your restaurant. With name recognition come logos, advertising and marketing support and the ability to deliver entrees, appetizers and other menu items that the franchisor made famous. In fact, the franchisor does much of the advertising for you in national media campaigns. Further, your restaurant franchise can tap into a customer base with great loyalty to the brand.
Ease of Assessment For You and Your Lender
A listing of restaurants and franchises for sale will often include minimum financing requirements, including for specific items such as real estate, kitchen equipment, and supplies. This lets you and your lenders know the financing you need to start the restaurant. Many lenders have familiarity with the operations and capital needs of restaurant franchises. You may assess the success of franchises by speaking with or visiting establishments, including to observe customer volume. Fast food franchised restaurants have numerous locations from which you can evaluate the success of the franchise.
Access to Vendors and Suppliers
In many cases, franchise owners do not have to search for suppliers and vendors. This is because the national brand already has a list of approved vendors and suppliers for items such as basic food ingredients, beverages, napkins, and condiments such as ketchup, sauces, salt, pepper, mayonnaise, and sweetener. By obtaining these items from one of the approved entities, you generally do not have to negotiate terms or shop for your own suppliers and vendors.
A Standardized Way of Operations
Franchisors have built and staked their marketing, reputation and financial success upon particular ingredients, dishes, cooking methods, and overall restaurant operation. When you examine restaurant franchises for sale, you will note that the franchisor offers and often requires an orientation and training session to become acclimated to these methods. These standards even include the layout, decor, and lighting of the restaurant.
Your Search for Restaurant Franchises
If you are interested in a restaurant franchise, you will need to examine the financial, operational and training expectations. Evaluate the prospects of success. Having experienced professionals helping you can guide your decision-making process.