Restaurant Franchising – Important Things You Must Know
Are you planning to open a restaurant of your own but not sure on where to start things? A franchise offers turnkey opportunity in owning a restaurant that has built-in name recognition and proven track record of success at the same time. Keep reading to know more about the most important things about restaurant franchising.
Number 1. Franchising a restaurant is not that cheap – there are lots of restaurant franchises that come with hefty price tag. To give you an example, one restaurant may require their prospective franchisees have minimum of 1.5 million dollars net worth as well as 750,000 dollars cash reserves while the other may need a million dollars net worth and half a million in liquid assets.
At times, before the franchises allow you to represent their brand, they will require you previous restaurant or various business related experience. Always keep in mind that even if you’re about to open an independent restaurant, the investors might be searching for experience in restaurant industry too.
Number 2. Restaurant franchises are turnkey operations – one of the common reasons to why it is extremely expensive to get restaurant franchises is that, they’re turnkey ready. From dining room design, menu, kitchen layout and even the marketing campaign, it is all done on your behalf. You don’t necessarily need to think of ways or work hard to build name recognition as it is part of what you’re buying already.
A Beginners Guide To Businesses
Number 3. Restaurant franchising have specific rules – with regards to franchising most especially in restaurants, being able to have consistency is so important. Customers expect to get the same food, atmosphere and service regardless whichever state or part of the world that they are in. The franchises come with rule book which outlines the do’s and don’ts of owning a franchise in order to keep everything consistent on every unit. The moment you agree to buy the franchise, you’re agreeing as well to follow the rules they have set.
If You Think You Understand Sales, Then This Might Change Your Mind
Number 4. It don’t leave much to your imagination – if you like cooking and creating new foods and planning out every aspects similar to dining room design, menus, pricing and so forth, then the structured set up of the restaurant franchise might not be the one that you need. If you want to do things in your own terms, you’ll do better in investing in a standalone restaurant.
Number 5. You still need a business plan – believe it or not, you still need to present a business plan before you can invest in restaurant franchising, this is regardless if it’s turnkey operations.