Let us say you have some experience with restaurant management and enjoy that kind of work. It is time to go out on your own, but should you start your own business from scratch? There is another option. Here are four advantages of becoming a restaurant franchise owner.
1. Training and support
Opening a successful franchise business starts with the proper training. The franchisor should provide you with an operations manual, managerial/employee training and ongoing support. The franchisor will want to make sure you comply with the brand standards and conduct your franchise using methods that made it successful to begin with.
2. Better cost structure
In the long run, purchasing a restaurant franchise may be less expensive than starting your own business. You will benefit from the franchisor’s ability to make good pricing arrangements with the suppliers you use. Setting up a franchise is often much easier and less expensive than starting a business from scratch, even taking the cost of the franchise fee into consideration.
3. Name recognition benefits
As a small businessperson, cold-calling can be frustrating; sometimes productive, sometimes not. As a franchise owner, you have the strength of the franchisor behind you. When working with a new customer or supplier, you can talk about the restaurant being in business for “x” number of years and you can offer to provide references.
One other advantage of owning a franchise is you have built-in staying power. If you decide to sell at some future date, you will command a higher price than you would for a small business few people have heard of. Potential buyers would know what to expect because they are familiar with the brand, and you do not have to be shy about marketing your franchise using the appropriate price tag.
The franchise agreement is vital. Before you sign, be sure to seek legal counsel. An attorney should review the agreement to ensure it contains no surprises and that both the franchisor and franchisee responsibilities are clearly stated. Once the agreement is approved and executed by both parties, you will be on your way to a new career.