You have probably been hearing a lot about the franchise industry as it continues to grow and gain popularity, but do you know how wide and varied the industry really is?
Here are some of the different types of franchises and how franchise restaurants are different from other types of franchises:
The Job Franchise
This type of franchise is a home-based business and is generally a low investment. Job franchises include travel agencies, coffee vans, domestic lawn care service, real estate service and corporate event planning. Generally, the franchisee is only required to buy minimal equipment and stock from the franchisor.
Product or Distribution Franchise
This type of franchise is product-driven and centers around the relationship between the supplier and the dealer. Basically the franchisee distributes the franchisor’s products. In a product or distribution franchise, the franchisee can use the franchisor’s trademark, but is not given an entire business system or structure to follow. Some examples are products like cars and car repair parts, vending machines, computers, bicycles and appliances. Some soft drink manufacturers like Coca-Cola and Pepsi not only license distribution, but also part of the manufacturing process.
Business Format Franchise
The business format franchise is the one you are probably most familiar with. As a franchisee of this type of franchise, you purchase the license to use the franchisor’s trademark and the entire support structure or system to run the business, including marketing and advertising. In most cases, the franchisors provides a detailed guide on every aspect of the business and offers training and ongoing support. The most common types of business format franchises include fast food, retail, fitness and restaurant.
Food franchises are probably the most popular type of business format franchise. Food franchises include bakeries, ice cream shops, pizza, fast foods and restaurants.
The Franchise Restaurant Difference
Franchise restaurants requires more of an investment and more of your time and energy than other types of franchises, but if you love preparing and serving delicious meals to your guests, then it is worth it. If you have always wanted to own a restaurant, but don’t have a lot of experience than joining a franchise restaurant program can be a smart choice. When you open a restaurant all of your own, you will be all on your own to make it successful which is a lot of pressure, especially if it is your first business venture ever.
It is not for everyone though so make sure you do your research to make sure it is the right decision for you.
First look closely at your finances. Startup costs for a franchise can run the gamut from only a couple of thousand dollars to millions of dollars so you need to look realistically at what your investment budget should be. Experts suggest that you factor in what your income is from other sources, what you expect your return to be from the franchise and your general lifestyle habits. If you tend to have expensive tastes, then you will probably not want to enter into a venture into a business dealing where most of your money is put on the line. Being brutally honest with yourself is paramount if you want to succeed in the franchise restaurant business.
Second, have a real heart to heart with yourself. Before you even start approaching any restaurant franchisers, you will need to ask yourself a couple of questions about why you want to do this, and what role you plan on taking in the business. Is this to increase your wealth, allow you a more flexible schedule to be home more, or to grow your business portfolio? Also you need to decide if you want to be a hands-on business owner who is involved in every part of the daily operations or will you be depending on your staff to handle that.
In addition, you should make a list of restaurants whose food you love and whose basic values you share. If you are going to invest in a restaurant than you should personally believe in their product and their commitment to the customer experience.
Top qualities you should be looking for include an established support structure that can help you develop your franchise, a group of knowledgeable and skilled experts who are available to advise you every step of the way and continual training opportunities to give you the best opportunity to succeed.
Other things to consider also are what type of food you want to sell. If your goal is to focus on healthy-living or offering only organic products at your franchise restaurants, then you will want to choose a parent company that also shares those values.
Here are some important questions to investigate:
- Are there certain products, services, brands that I am passionate about? Are there certain values that are important for potential franchisor to have?
- Is there a viable market for this?
- How much are initial start-up costs? Is this doable for me?
- How long does it take to see a profit? Do I have enough money to keep everything afloat till then?
- Does the franchisor offer adequate training and ongoing support? What do they offer for advertising and marketing?
- Where will my franchise unit be located? Will I get rights to certain territory?
- Are there any bankruptcies or legal problems in the franchisor’s present or past?
- Are the franchisor’s trademarks federally registered?
- Does the franchisor compete with its franchisees in the same market?
- What are your financing options?
- If they offer training, where will it take place and for how long? Will it cost additional money?
- Who leads the training and what are their qualifications?
Zac’s Burgers is a family-owned burger restaurant that offers fast food franchise opportunities, both brick and mortar franchise units and burger trucks. They pride themselves on providing fresh, delicious food and a family-friendly atmosphere. They also believe strongly in supporting the communities they live in. They are one of the best franchises for sale out there. If you want to sell burgers in Philadelphia, you have come to the right place.
If you are a burger lover and are interested in joining Zac’s franchise program, give them a call today or visit their website for more information. Let today be the day you go after your dreams of owning franchise restaurants.