Franchise restaurants... 10 things you should know!


  1. Restaurant Franchises and Restaurant Chains are Not the Same Things.

         Starbucks is a restaurant chain, but because it is owned by one single parent company, it is not a franchise. You can't purchase a Starbucks coffee shop. Burger King is a chain and a  franchise,  because you can buy individual units of a Burger King restaurant.
    So, all franchises are chains, but not all chains
    are franchises.

     
  		2.
    Restaurant Franchises Aren't Cheap

         Most restaurant franchises come with a hefty price tag. Dunkin' Donuts requires prospective franchisees to have a minimum of 1.5 millions dollars net worth and $750,000 in cash reserves. Wendy's requires $500,000 in liquid assets and one million
    net worth.

     
  3. Franchises Often Require Restaurant and/or Other Business Experience

         Many franchises require  previous  restaurant or other business related experience before allowing you to represent their brand. Keep in mind, even if you were to open an independent restaurant, investors may be looking for experience in the restaurant industry, as well.
     
  4. Franchises May Require Multiple Locations 
                                                                 Both Pizza Hut and Taco Bell Franchises require a minimum of three new restaurants within three years, and Dunkin' Donuts requires a minimum investment of five new restaurants at a time.
     
  5. Restaurant Franchises are Turn Key Operations
    O    ne of the reasons restaurant franchises are so expensive is that they are turn-key ready. The kitchen layout, dining room design, menu, even the market campaign are all done for you. You don't have to work at building name recognition- it's part of what you are buying.

     
  6. Restaurant  Franchises  Have Rules
    Consistency is key when it comes to restaurant franchises. Customers expect the same service,  food  and atmosphere, whether they are in Alabama or Arizona. To keep everything consistent across each unit, restaurant franchises come with a pretty thick rule book outlining the do's and don'ts of franchise ownership. When you agree to purchase a restaurant franchise, you are also agreeing to adhere to all their rules.
     
  7. Restaurant  Franchises  Don't Leave Much to the Imagination
    If you like to cook and create new foods and like to plan out all aspects of events - like menus, dining room design, etc...the structured set up of a restaurant franchise may not be creative enough for you. Ditto if you like to set the rules and try new things. Read on the see if you are cut out for a restaurant franchise. 
     
  8. You Still Need a Business Plan to Buy a Franchise
         Even though restaurant franchises are  turn-key  operations, you should still have a well thought out and stellar restaurant business plan.
     

  		9.
    Different Types of Franchise Ownership

    You can be a single unit franchise, multi unit franchise, area developer or master franchise owner.


     
  10. McDonald's  is the world's most recognizable Restaurant Franchise brand.With over 27 million people served daily around the world,  McDonald's  is still the largest restaurant franchise. It has more than 300,000 units worldwide. Taking a cue from Henry Ford's
    assembly line concept, the McDonald brothers began offering the fastest, cheapest food possible by employing low skill workers to assemble it. While the brothers were successful at serving food efficiently and inexpensively, they were not so good at franchising. A restaurant equipment salesman by the name of Ray Kroc saw the potential in the McDonalds concept, buying the brothers out in 1954. His formula for franchising set a precedent for fast food chains, changing the              
                                                       landscape of American dining.