Fast Food Restaurant Franchises: Good or Bad?
Owning a McDonald's or Burger King
Even though you thought that you might never see the two fast food giant's names in a line only separated by a small two-letter word, McDonald's and their rival Burger King are actually two of the most popular fast food franchise opportunities in the world today. There are so many great things about these two companies, but on the flip side there are also some things that many people would rather leave alone when considering opening a franchise. For starters, these two companies already do have a large-sized customer base so franchise owners will not need to worry about attracting a loyal customer base.
On the other hand, though, there are so many fast food restaurant franchises, such as McDonald's, that are starting to get a bad reputation because of the horrible service that is received. Along with opening up a franchise also comes expectations and reputations, so opening up a franchise that already has a bad reputation may not be the best thing to do. In addition, plenty of fast food restaurants (not just McDonald's) are starting to receive bad customer ratings because of the service and messed-up orders that are continually thrown out the window!
The Good about your Franchise
Of course there are plenty of good things as well about owning a fast food restaurant franchise. Perhaps the best thing that people love about owning a McDonald's or a Burger King or even a Wendy's Hamburger joint, though, is the fact that they'll be able to receive generous profits probably within the first year as well! Considering the fact that many McDonald's franchise owners actually make a profit of more than one million dollars each year just shows how profitable fast food restaurant franchises can be. But perhaps the profit side of owning one of these stores is about the only good thing of owning a fast food restaurant franchise, but how much more could you ask for? With over a million dollars at your disposal (or close to it with a lot of fast food franchise locations) each year, chances are that you'll have enough resources to ask for more help, if needed.
Nevertheless, the good and the bad of owning a fast food restaurant franchise should be examined. If you think that this is the opportunity of a lifetime then chances are for you it will be a good venture. On the other hand if you start to smell rotten eggs in the franchise opportunity then the best thing to do would be to stay away!
Franchise Brokers: Should You Use One?
There are many advantages and disadvantages to using a franchise broker and chances are that you don't really need one anyway. There are plenty of reasons why franchise broker's may want to help you out, but you'll find out later on in this article that most of the time it will be because of purely selfish reasons. If you have ever heard the expression that "if you want something to get done then you should do it yourself," then that phrase definitely applies itself to this situation here. Indeed, there are many situations where a broker may come in handy, but chances are that you'll feel the same way and toss the franchise broker idea out the window as well. On the other hand, though, there are also some individuals who rely on franchise brokers for specific kinds of information and if you're okay with dealing with a franchise broker then more power to you! But here is a breakdown of what franchise brokers are all about if you have not known about them previously:
The Idea of the Franchise Broker
Considering the fact that you are just even thinking about discussing franchise options with a broker indicates that you at least enjoy the thought of being able to kick and throw around ideas with someone other than a personal friend or family member. Of course, the franchise broker is an independent agent of the company headquarters itself and can tell you a lot of useful information about owning a particular franchise because chances are that they have dealt with them in the past anyway when leading other prospective and future franchise owners to a specific company as well. Speaking with a franchise owner, then, is a great way to find out detailed information about the goings-on and inner workings of how easy it is to work a franchise for a specific company.
Vested Interest
On the other hand it is also important to realize exactly why a franchise broker may be tempting you to buy one franchise over the other, or at least making it seem that way. Franchise brokers are usually able to receive a hefty commission for the sales that they make and by leading an individual to a specific company and selling those franchises may make them sometimes as much as 50% of the franchise-owning fee. When speaking with a franchise broker after realizing that, however, you may want to be wary of why the broker is leading you to the most expensive decision. Chances are that the more higher-priced a franchise opportunity is then the broker will also get a higher commission as well! In essence, franchise brokers essentially have a vested interest in which franchise you choose because their whole salary and payoff rests upon how much you, as the franchise owner, will be paying to get started!
As you can see then, franchise brokers can be a good thing if you are totally clueless as to how franchise opportunities work and they can certainly give you valuable information about owning a certain franchise over the other. On the other hand, you may be better off looking for one of the many franchise opportunities yourself if you see any hint of a high-pressure salesman for the franchise broker you chose! But trying to decide what franchise you buy should be one of the most enjoyable things for a potential franchise owner anyway because it is the start of a brand new business venture!
Home-Based Franchise Opportunities
If you have ever wanted to own a franchise for yourself there are plenty of ways to go about doing so. Even though you may have previously thought that owning an actual store or restaurant franchise is not for you, there are actually some good alternatives to those traditional types of franchises. A few of the opportunities that are starting to actually catch on are in the home-based franchise arena and there are plenty of good opportunities that exist within this market if your whole goal is to create a decent income stream and opportunity that will last for many years on end!
Owning the Internet
Even though everyone knows that it was Al Gore who created the internet, there are actually many people who consider themselves internet owners. However, managing the internet is not what is being discussed here, but providing internet services to many places across your town and the surrounding areas is just one home-based franchise business opportunity that has gained popularity in recent years. This business opportunity is actually called WSI International, and this home-based franchise does just what was described above.
What franchise owners of the WSI International company do is to provide internet services to various businesses throughout the area. The low-cost options are perhaps some of the reason why this franchise opportunity has gained strength in recent years. But what better service could franchise owners perform than to provide businesses that already have too many expenses a way to actually save money on one of the resources that they frequently use, the internet?
Providing Bouquets
Even though a flower shop franchise might actually be a good investment for a franchise, a home based franchise opportunity that is actually quite different from other businesses is called Candy Bouquet. Instead of sending regular flowers and bouquets to your friends and family one possible option that you may have is to create a candy bouquet. These products were started by Margaret McEntire in 1989 and her joy of providing bouquets of flowers that were actually made out of candies and chocolate pieces brought her more joy than anything else. She was so successful with this venture that she started franchising her operations only 4 years later, but this is a great franchise opportunity to get involved with!
Of course, there are plenty of other franchise opportunities and businesses that are just great for home-based businesses and individuals who don't want to bother with the regular and traditional store-front ownership. In fact, a few of the most popular service franchise opportunities for home-based individuals is actually in the home-cleaning and commercial cleaning arenas, such as Jani-King, Bonus Building Care, as well as the Jan-Pro Franchising International opportunity. Who would have thought that a service that started out cleaning business professional buildings would be turned into a franchise at some point in time? However, these are some of the popular franchises that people can choose from.
Nevertheless, though, home-based businesses are perfect for pretty much anyone and offer many of the great benefits of owning any sort of franchise whatsoever!
Learning to Manage a Franchise
There are many people who own franchises around the world. But if you have yet to jump on the franchise bandwagon there are definitely some things about owning one that you may want to consider. If you have ever dreamed of owning your own company or store, yet have lacked the talent or drive to create your own company from the ground up, a franchise is a simple store that will allow you to have the popularity that you want, but the experience of owning your own store. Essentially, franchise owners are store owners, except that they're simply using the reputation of the company in order to succeed. There is nothing wrong with this practice, however, because millions of people throughout the world engage in the practice of buying and owning franchises of another company.
If you are set on owning a franchise, though, there are some principles about managing one that you probably should know! For starters, the first thing to realize about owning a franchise is that it is like your own mini-store that has been cloned from another one. You are the boss of the franchise and you are also able to hire out the managers, employees, and whole operation of the franchise altogether! Essentially as the franchise owner you are the one who will be responsible for the actions of the employees and you are also the one that others will go to with questions, concerns, and even emergency situations.
Managing a franchise, if you are the franchise owner, definitely requires patience and steadfast diligence. Starting any company is hard enough, but starting one that has already had years of experience to gain a reputation may be even harder simply because you have standards that have already been set. In other words, the expectations of the people that visit your franchise are no different from the expectations that they have at any of the other store locations!
Another thing that managing a franchise entails is the ability to trust. There are many people who buy franchises for the sake of having a revenue stream that they can count on, but this also involves hiring managers and assistant managers that you'll be able to trust to run the store. Assuming that you won't be there for much of the time as store owners rarely ever are, the head managers are the ones who will deal with employees, guests of the business, and other customers as well! This all goes back to hiring the right kind of people and you'll definitely want to hire the right people for the job of managing the restaurant if you choose not to be involved the majority of the time!
Learning to manage a franchise could be a great learning experience and there are all sorts of reasons why you may want to invest in one. As mentioned, franchises are essentially using the reputation of an already-established company in order to grow and earn money! In fact, franchise stores are the backbone of many different types of businesses in our society, and without them there would be many people at a loss!
Making the Most of Your Franchise
Just as there are plenty of ways to make a profit on the World Wide Web and in the real world, so too are there plenty of ways to make a profit from the franchise opportunity that you have started! With all the great companies throughout the world, though, chances are that you can find at least one to make a successful venture. On the other hand if you have been apprehensive about actually starting a franchise on your own then it may be time to take on a franchise partnership. But no matter which method you choose to start owning a company's franchise chances are that you'll find it to be one of the most profitable ventures and opportunities that you have ever had.
However, there are several ways that one can make the most of their franchise opportunity without getting bogged down with too many details. There definitely are a lot of responsibilities that go along with owning a franchise and at first you may be swamped with the duties of owning your own store. There are some people who actually dislike owning a franchise for this very reason, and one of the downsides is that a franchise owner may have to spend less time away from their friends and family. However, here are some good ways to make the most of your franchise:
Get Loved Ones Involved
As mentioned, there may be some times that you may be disconnected from your family or friends at time because you are spending a great deal of time fostering the care of the business. One good thing to do at this point, though, would be to actually get family and friends involved in your franchise. Whether you actually hire them on to the employee payroll or you choose to have them perform administrative duties, there are plenty of tasks that you could give them that would make them feel like they are really involved.
Have Fun With Your Franchise
Another thing that you could possibly do with your franchise is to have fun with it. There may be times when you may be actually thinking that your franchise may be failing, but this is also another good point in the life of your franchise to revive it. For example, remodeling the whole outside of the franchise is something that you could possibly do with the permission of the company itself, but is something that would add fun to the franchise business itself. Furthermore, another great technique you could use if you are actually losing customers and business is advertising. For example, independent individuals or already-hired employees could be used to stand outside on the corner dressed in a mascot outfit. Secondly, special discounts and deals could also be added in order to generate more revenue if, indeed, your franchise is failing!
Altogether, though, there are plenty of things that one can do in order to revive the business and make the most of his or her franchise opportunity! There are many people who get stuck in a rut because of all their cumbersome duties and responsibilities that come attached to owning a franchise, but the experience does not always have to be a dreadful one if creativity enters the picture!
Popular Franchise Companies
Owning franchises in the United States is just one way to raise capital for yourself and for your business. There are all sorts of reasons why one might want to invest in a franchise on their own, and there definitely are some popular franchises in the United States. If you have ever wanted to know about what's required when owning a franchise of a certain company then here is the information that you need. Here's a trivia question that you can take home to your family, though: what franchise has been ranked #1 many times over? You probably could very well guess what it is, and if you were thinking McDonald's Restaurant you were exactly right. There have several times when McDonald’s Restaurant has been ranked #1 for the food category it's been placed in, but here are some other interesting facts about owning a McDonald's franchise:
The McDonald's Franchise
Did you know that there are more than 11,000 McDonald's franchises all over the United States? Indeed, McDonald's has seen tremendous growth in the restaurant level over dozens of years and it has essentially created a world filled with Chicken McNuggets, Big Macs, and Ronald McDonald characters. But it's actually easy to see why owning a McDonald's franchise is popular, and it's actually not as expensive as everyone would have thought. In order to have a McDonald's franchise about the only thing that is required of the franchisee is to have a cash liquidity value of about $100,000. In addition, the franchise fee for owning a McDonald's is set right at about $45,000 and the total investment that one is required to put forth when creating a McDonald's franchise restaurant altogether is somewhere between half-a-million dollars and one-and-a-half million dollars!
On the other hand, owning a McDonald's franchise restaurant is well worth the opportunity, which is why many franchisees see it as a golden opportunity. Considering the fact that many McDonald's franchises make well over $1 million per year, having a McDonald's franchise under your belt may be just the thing you need. In return, though, be prepared to pay a hefty royalty fee to the McDonald's headquarters, which is currently set right at about twelve percent!
Burger King is Much More
You may be surprised to find out, however, that when it comes to owning a franchise, Burger King is more all over. The franchise fee is more, the total franchise investment is more, but the only thing that is less is actually the royalty fee, which is just around five percent! Who would have thought that owning a Burger King, though, would be more expensive than a McDonald's franchise? In fact, a Burger King franchise costs just about double what a McDonald's franchisee is required to have available and pay.
Nevertheless, these are two of the most popular franchises throughout the United States. The McDonald's Corporation is definitely raking in the dough, but the comparison up against their fast food restaurant rival, Burger King, is interesting as well!
Professional Franchise Information
If you are thinking about owning a franchise then there are some things that you must think about before starting out on the journey itself. It would actually be best to consider what's all involved with owning a franchise of a company before you actually contact the company you'll be working with because there may be a lot of hidden rules and regulations involved that it may not even be worth it in the first place. Nevertheless, though, if you are set in stone about wanting to purchase a franchise of a company name then there are definitely some issues that must be cleared with the company before you sign into any sort of agreement!
The Fees
The first and foremost issue that you'll probably want to take care of when entering into any franchise agreement is what fees you'll be paying. Most companies require that a franchise owner pay an initial fee to be able use the company's name and reputation whenever they want, but there are also some other fees that they must pay as well. For example, what is usually required is the franchise owners must pay a percentage of their profit to the company itself in return for being a franchise. Even though this percentage may only be 1-2%, it still could take a big chunk out of the profits. What you may want to get in writing is exactly how much you'll pay to the company, whether it will be a percentage of the gross or net profits, and whether or not any fees will be required the first year considering that many businesses do not even turn a profit until the second or third year!
Renewal Agreements
When signing into a contract with a company for a franchise one of the things you may be required to agree upon is exactly how long that contract will be and how long subsequent contracts will also be. Most companies require that a franchise owner sign a contract for at least 10-15 year agreement, but then make subsequent contracts half of the duration that the first one is signed for. However, you may also want to know what exactly will happen if you somehow breach the contract and bankrupt the franchise before the contract is up. There may be hefty fines and fees involved, but getting all of the specifics in writing is the best route any franchise owner can take!
Location
One important issue with franchises and all company branches is the location of each one. Many companies have stipulations that are set so that no company branch can be in the way, or in a physical location that is close to another of the same branch. This rule of thumb probably also goes for franchise businesses, but this is an issue that you'll want to discuss as well!
There are plenty of other things that you must discuss with the company headquarters itself before jumping on any bandwagon or riding on cloud nine! Securing your franchise is very important and making sure you know all the rules and regulations goes along with that!
Post a Comment