Restaurant Franchise Opportunity

There are just as many good reasons to buy a franchise as there are not to. Whether or not you start your own business or look into buying a franchise depends on the type of person you are, how independent you want to be and how much experience you have in running a business.

One of the biggest advantages of buying into a franchise is the name recognition. The public already knows the reputation of your business, the quality of the food and exactly what to expect. Customers who know what to expect before they walk in the door are rarely disappointed and will keep returning. The franchise often provides their favorite type of cuisine or a best-loved dish, prepared exactly the same way as it always is. It provides a consistent experience.

If you don't have extensive business experience and marketing isn't your strong point then you may want to consider a franchise. It will offer you a proven, successful business model and your advertising is already conceived and executed for you. You have support from the corporate office and can consult with them on any problems you may encounter. The collective buying power of the corporation means you may have lower prices and thus, lower overhead costs. It can also be easier to recruit staff since the work force is familiar with the name and knows what to expect.

There are a lot of reasons to buy a franchise and that is why they are so popular. But there are also drawbacks that you must consider. Franchises have a certain business model that you must adhere to. You are presented with a restaurant that has a certain menu, decor, floor plan and rules to follow. If you would like to offer something a little different from the menu or change a recipe then you're out of luck. Franchises depend on consistency, not creativity and you will not have any flexibility when it comes to your own ideas about how to develop your business.

You will have to share your financial information with the franchiser and pay royalties every year. You will get support in advertising and day to day operations but you are paying for this privilege through your franchise fees. These royalties vary with each franchise but they can represent a substantial portion of your profits. A franchise has higher start-up costs than an independent business, often making them inaccessible to the average first-time business owner.

While you do have field support from the corporate office you can become vulnerable if the franchise fails, leaving you out in the cold. If you start your own restaurant then you may have a tougher time in the beginning without expert support but in the long-run you will have more freedom and flexibility and possibly more profit potential.

Buying a franchise also means you have an immovable wage scale and incentive program. You might find a real gem in one of your wait staff, someone you think would do well if promoted. Better check out those personnel rules though, because the franchise may have schedules and requirements that don't suit your needs. A truly motivated and superior server may not be able to be rewarded in the same way as a server that performs below your standards.

Think carefully and do your homework before buying a franchise. It can be the best move of your life or turn into a real headache and you can read about the negative franchise experiences of many people on the Internet.

Starting a restaurant does not have to be difficult. If you take the time to get a little experience and do some thorough research it will be no problem for you to take the independent route. A franchise may seem like the easy option in the beginning but if you put in the effort and develop your own brand and business model you should see greater rewards in the long run.

For our next article on Restaurant Menu Planning and to learn more about some of the expert guides helping newcomers open their own restaurants visit -

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