If you've always dreamed of owning your own business, you may feel as though a restaurant will provide you with the best starting point. But unless you've spent a lifetime honing heirloom family recipes or designing your own unique takes on classic recipes, you may find yourself at somewhat of a loss when it comes to branding and creating a menu for your own restaurant.
Purchasing a franchise license instead may provide you with the opportunity to own a restaurant or other food service establishment that has already demonstrated broad appeal and a healthy customer base, taking away much of the uncertainty you may feel as you dive into this venture.
However, purchasing a franchise isn't necessarily the right choice for every entrepreneur, and there are some important factors you'll want to take into account before making a final decision. Read on to learn more about the benefits and potential drawbacks of both franchised and non-franchised restaurants.
Some Franchise Benefits
Franchise licenses are issued to business owners who would like to open a new storefront for an existing chain. These licenses are available at a variety of price points, with some requiring a "buy in" amount in the low five figures and others requiring a far larger sum.
In exchange for this licensing fee, the franchisee will be provided with assistance and support in all aspects of restaurant ownership. The central management of the franchised restaurant will make decisions about promotions, pricing, menu offerings, and even restaurant décor; you'll need only to put these decisions into action to get the ball rolling on your own business.
You'll also have the benefit of joining a regionally or nationally well-known and respected group of restaurants. In today's high-octane society, getting a new restaurant on the map can be a challenge; a franchise can allow you to capitalize on the business's proven success rather than going with a relative unknown. This can be especially beneficial in tourist-heavy locations; harried or exhausted visitors to your city are often far more likely to select a restaurant where they've dined before (albeit in a different city) than a completely new one.
Potential Drawbacks Of Franchising
Many of the disadvantages of a restaurant franchise relate to the lack of control. The terms of a franchise agreement can be strict, and violation of these terms could subject the restaurant owner to liability or even the stripping of the franchise entirely. This can sometimes mean being forced to honor coupons or promotions that actually cause you to lose money, being required to remodel or redecorate your existing building when the franchise rebrands, or being required to switch to a different vendor. Unless you're comfortable giving up this level of control to a somewhat faceless organization, you may want to rethink your decision to franchise.
For more information, contact a professional in your area like those found at Mohajerian A Professional Law Corporation.Share
18 July 2017
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