Opening a franchise restaurant can be a very lucrative business if you choose the right one. For the most part, just like every other type of business investment, franchise restaurants have their own share of pros and cons. If you go into it fully prepared and know what to expect, you can handle anything that comes your way. Owning a franchise restaurant is a great career move if you can find the right balance of being on your own and relying on your parent company for the more important decisions. Here’s a look at the pros and cons of owning a franchise restaurant.
Pros:
• Ready Recognition
Buying into a franchise restaurant means that you will already have an established brand to back you up. An established franchise already has a customer base that you will be able to draw on when building your business. You just have to ensure that you provide a level of service that meets or exceeds their expectations. Making your customers happy is the key to any successful business. Having a recognizable brand to back you up means that you will have to do very little on your own to get recognized.
• Assistance with Marketing
When you buy a franchise, almost every aspect of the marketing strategy has been figured out. You will already have a slogan and brand that is well-known and recognized. With a franchise, you will normally be required to follow the marketing plan that the parent company already has in place. Although you will be allowed to deviate in small ways, the bulk of your marketing tools and strategy will already be fleshed out for you. Franchises often have professional marketers on hand that are capable of building and supporting the brand.
• Things Get Better with Time
As a franchise owner, your quality of life will depend on how successful your franchise is and the type of people you have working for you. In the beginning, your life may be fully committed to the business, leaving little time for anything else. As your franchise grows and you find people who can effectively manage things for you, your life will become your own again and you may actually be able to enjoy it!
Cons:
•Larger Upfront Investment
One of the biggest drawbacks for most franchisers is that there will be a large upfront investment. Financing may be easier to get when it comes to purchasing a restaurant. Still, the upfront investment may be a little steep for some people, especially if they are just starting out in the restaurant business. If you can afford the initial investment, your return will be excellent over time.
• Poor Support System
Corporate businesses often have a reputation for being inaccessible. If you buy a franchise and expect your corporate parent company to always be there to guide you, your path may be a little rockier than what you expected. The majority of companies do try to be as available as possible, but there are a few that set you up and then let you sink or swim on your own. Do a little investigation first and talk to other franchise owners. This will give you a good idea of how attentive your parent company may turn out to be.
Buying a restaurant franchise isn’t for everyone, but those who choose to take the plunge are often quite happy with their decision. If you are thinking about or have already purchased a franchise restaurant and have questions concerning insurance and other issues, contact our experts at RMS Insurance at (516) 742-8585 today. We can walk you through the insurance process and give you the guidance you need to make your business reach new heights.