5 Points To Remember Before Getting Into Restaurant Franchising
Do you have plans of opening a restaurant but it just happens you don’t know where to start? 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 on reading to learn about the most important things that you ought to know in relation to restaurant franchising.
Number 1. Franchising a restaurant is not that cheap – many restaurant franchises do come with hefty price tag. So as an example, one restaurant might require prospective franchisees to have a million dollars net worth and half a million in liquid assets while some others may require a minimum of 1.5 million dollars net worth as well as 750,000 dollars cash reserves.
There are lots of franchises that are requiring previous restaurant or various business related experience before enabling you can represent their brand. 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 – the fact that they’re turnkey ready is among the reasons that restaurant franchises are so expensive. 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.
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Number 3. Restaurant franchising have specific rules – when it comes to franchising especially in restaurants, having consistency is extremely important. Remember, your customers are expecting to get the same food, atmosphere and service no matter what state or country you are in. In an effort to keep everything consistent on units, the franchises also come with a rule book which describes the do’s and don’ts of owning a franchise. By the time you’ve agreed to buy the franchise, you are also agreeing to follow the rules they’ve set.
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Number 4. It don’t leave much to your imagination – the structured set up of restaurant franchise might not be for you in the event that you like cooking and creating new foods and planning out every aspects similar to dining room design, menus, pricing and so forth. You’ll do better in investing in a standalone restaurant if you wish to do things on your own terms.
Number 5. You still need a business plan – whether you believe it or not, even if restaurant franchising is turnkey operations, you will still need to present a business plan.