Should you purchase a food franchise?

Food franchises can be some of the most lucrative franchises to run today.

With wealth, comes a lot of challenge. Did you know that many franchisees consider food franchises some of the most challenging businesses to operate? Before you decide to take the leap and purchase a food franchise I urge you to think about the advantages and disadvantages of owning and operating a food franchise today.

Instant Appeal and Recognition: Chances are you will need financing help. Lenders today completely understand the costs of opening a food franchise and are happy to help.

Operations: A great way to figure out if you would be successful in a particular franchise is to talk to the franchisees. Food franchisees tend to have a good amount of units and have been in this business for a long time. This will help you get an idea of what your getting yourself into.

High Investment: Food franchises represent a category as one of the highest investments around for initial costs. You will probably need ovens, grills, sinks and dishwashers, customer seats, bathrooms, food prep areas, and more. Also, you have to worry about outside seating!

High turnover, low-wage labor: The challenge of hiring skilled labor in the food industry is one of the number one frustrations franchisees report. People are willing to accept the jobs as quick as they will let them go. Most food businesses require a large amount of workers to cover all the shifts necessary. Make sure you fully understand the type of labor issues you will run into, this will be a huge part of your business.

Health Codes, Building Restrictions: These codes can drive a franchisee crazy. They are put in place for the protection of the customers as well as the employees. Best thing to do is make sure you get everything right with the builder the first time, or you could run into some unexpected expenses right before opening.

Vacations, yeah right! - Are you ready to work 50-60 hours + a week for the first year at least. If you really want your food franchise to work then there is a lot you have to put into it. They can be incredibly rewarding and streamlined once they get going, but the initial stage is rough. How do you feel about cooking french fries when your cook quits or doesn't show up?

The whole focus of this article is letting you know that while food franchises are great and rewarding, there is a lot of challenge that comes along the way.

Are you ready?

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Posted by manung36, Monday, December 31, 2007 8:32 PM

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