Key Steps to Buying a Fast Food Franchise
Key Steps to Buying a Fast Food Franchise
1) Know your financial situation, skills and interests. Ask yourself: why does owning a fast food franchise appeal to you? Are you willing to sacrifice a large amount of your time – including evenings, weekends and holidays – to this endeavor? You can instantly save time and money by narrowing your options to what's affordable.
2) Do your research! Once you've got the basic idea about your financial situation, dig deeper. Take a look at the franchisor's UFOC/FDD materials, especially the financial statements, and interview current and former franchisees: Are they satisfied with their earnings and franchisor support?
3) Consider the market. Taste is a regional preference – which means that a food concept that is popular in one area may not be popular in another. Also, you are more likely to find a niche concept in dense, urban centers than in a small town in the Midwest. Consider your competition, as well: if your target market is saturated with restaurants remarkably similar to yours, you might want to consider a different concept.
4) Location, location, location. It is crucial to your success as a franchisee that you select the prime location for your operation. You would severely limit your earning potential, for example, if you locate in an infrequently traveled area or at the back of a strip mall. If you're the only game in town, perhaps you should locate near a major freeway or highway heavily trafficked by truckers etc. – that way, you're sure to get some business despite a potentially remote location.
5) Secure your franchise financing. You will most certainly need financing once you've made your franchise selection. Numerous options are available to you, including conventional bank loans, home equity loans and SBA guaranteed loans. Additionally, some franchisors offer in-house financing, and some franchises – less expensive ones, such as home-based business franchises – charge the franchise fee on a credit card.
6) Attend training and hire staff. You will need training and an operating manual in order to run your franchise business. Franchisors generally provide some sort of training, but, depending on your franchise concept, you may need to hire a staff yourself. Be sure to post sign and run an ad advertising openings prior to opening your business.
7) Obtain necessary permits and insurance. It is likely that you will be required to apply for various federal, state and county licenses and permits. As far as insurance is concerned, each industry has its own unique requirements. You can find all this information in the Franchise Agreement.
Key Steps to Buying a Fast Food Franchise - To learn more about this author, visit Sebastien Page's Website.
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There's no doubt that investing in a fast food franchise could be a lucrative decision – fast food franchising is, after all, a $125 billion dollar a year industry. However, buying a fast food franchise requires a lot of hard work. If you're thinking of becoming a fast food franchise owner, you should consider following these key steps:
1) Know your financial situation, skills and interests. Ask yourself: why does owning a fast food franchise appeal to you? Are you willing to sacrifice a large amount of your time – including evenings, weekends and holidays – to this endeavor? You can instantly save time and money by narrowing your options to what's affordable.
2) Do your research! Once you've got the basic idea about your financial situation, dig deeper. Take a look at the franchisor's UFOC/FDD materials, especially the financial statements, and interview current and former franchisees: Are they satisfied with their earnings and franchisor support?
3) Consider the market. Taste is a regional preference – which means that a food concept that is popular in one area may not be popular in another. Also, you are more likely to find a niche concept in dense, urban centers than in a small town in the Midwest. Consider your competition, as well: if your target market is saturated with restaurants remarkably similar to yours, you might want to consider a different concept.
4) Location, location, location. It is crucial to your success as a franchisee that you select the prime location for your operation. You would severely limit your earning potential, for example, if you locate in an infrequently traveled area or at the back of a strip mall. If you're the only game in town, perhaps you should locate near a major freeway or highway heavily trafficked by truckers etc. – that way, you're sure to get some business despite a potentially remote location.
5) Secure your franchise financing. You will most certainly need financing once you've made your franchise selection. Numerous options are available to you, including conventional bank loans, home equity loans and SBA guaranteed loans. Additionally, some franchisors offer in-house financing, and some franchises – less expensive ones, such as home-based business franchises – charge the franchise fee on a credit card.
6) Attend training and hire staff. You will need training and an operating manual in order to run your franchise business. Franchisors generally provide some sort of training, but, depending on your franchise concept, you may need to hire a staff yourself. Be sure to post sign and run an ad advertising openings prior to opening your business.
7) Obtain necessary permits and insurance. It is likely that you will be required to apply for various federal, state and county licenses and permits. As far as insurance is concerned, each industry has its own unique requirements. You can find all this information in the Franchise Agreement.
Key Steps to Buying a Fast Food Franchise - To learn more about this author, visit Sebastien Page's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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