Pros And Cons Of Owning A Food Franchise

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When it comes to deciding the type of Franchise business you want to own, there are several
factors to consider. The business location, how many people you will employ and more. And
once you have decided for a franchise business you think you would like to own and operate,
you will have to weigh the Positive sand Negatives. If you have decided on a Food Franchise,
here are some pros for owning a food franchise business.

1. New Food Service establishments create a lot of buzz. Most people know when a new
    restaurant opens in town, especially if the Grand Opening is a memorable one. When you
    buy a franchise, Marketing Assistance is included in the upfront and ongoing fees. Good
    franchisors know how to put on a strong Grand opening, and if goes well, you need not have
    to wait for customers to line up    to try and purchase your food. As long as have a steady
    stream of customers patronizing your food store, Revenue tends to be pretty high. It depends
    upon the franchise, but when you think about it, it is tough to buy Breakfast or Lunch for less
    than $8- $10 in most food service establishment with Dinners are usually costing even more.

2. Food service is fast-paced especially when your take-out phones are ringing off the hook, people
    are waiting in line to order, your cash register is overflowing with cash. If you like working in a
    high energy, fast-paced environment, you are going to love owning a food franchise. Don't count
   on there being a dull moment.

3, Real Estate Assistance is provided. Location can make or break the success of a food franchise.
    You want to have the best one possible. That is where a Franchisor with a good real estate expert
    is the key. Immediately, after your Franchise agreement is signed, Real Estate person at Franchise
    headquarters gets to work. He leverages his connection with leading commercial Real Estate
    companies to help secure the best location possible for your new business. That alone gives you
    huge advantage over an independent business person who's trying to secure a location for his
    restaurant.
 
The Negative side of Food Franchise ownership -

 1. Food franchises have high employee turnover. Turnover rate in hospitality industry hover around
     70%. That means you will be spending lot of time on employee training, new Hire-paperwork,
     and Shift filling, unless you have a Manager who can do this for you.

2.  Food Franchise require a physical location. First, compared to an office-based or Home-based
     franchise, your expenses go up. You will be paying for things like Signage, Build-out, rent,
     utilities and more. Secondly, you will have to sign a multi-year commercial lease. These leases
     tend to be complicated and are extremely Landlord - friendly. Before you sign a lease, Hire an
     attorney to go over it with you. Make sure the Attorney has sufficient experience with commercial
     leases.
3  Food franchise ownership requires long hours. They need to have a lot of energy especially during
    peak times, where you will have to pitch in where needed. Whether it is helping prepare food,
    manning the phones, cleaning tables, you will be smack-dab  in the middle of the chaos that all
    busy food franchises experience.

To conclude, owning a Food Franchise can be a good way to go for someone who enjoys a busy,
high-energy environment that includes a good number of employees.

Furthermore, if you can afford to own several units of a high-performing food franchise, your business can end up being quite lucrative.


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