Chances are, if you’re reading this, you’re thinking about opening a restaurant franchise in your community. Opening a franchise can be a very exciting and rewarding experience, one that can serve you well throughout your life and into retirement. But before you plow full speed ahead, it’s wise to consider all the pros and cons and to determine if you have the right personality for the job. Below we explain some aspects of this business venture to help you see it in a clear light. Read on to help you decide whether you’d thrive or flounder.
Are you happy to follow established guidelines?
Every restaurant franchise is going to have its own set of rules and policies that you must adhere to. These companies have spent years, probably decades, building loyalty to their brand and it is their aim, as it should be, to protect it. There must be some degree of uniformity. You have to be OK with towing the line. Sometimes ideas you might want to implement could be denied. Of course, this doesn’t mean you’ll completely be a slave to the franchise’s rules. Your ideas and creativity can be put to use in other ways that don’t affect the brand personality. Just remember that you can’t make ALL the decisions. If you are very stubborn about always doing things your own way, owning a franchise might be a struggle for you. People who especially desire to ‘be their own boss’ sometimes find that owning a franchise is not exactly as they had built it up to be in their minds.
Are you of the ‘high risk, high reward’ mindset?
Coming up with enough capital can be a difficult obstacle to opening a franchise restaurant. Many of the largest restaurant chains require close to a million dollars in assets, before they will even contemplate letting you buy into their company. On top of paying for the rights to a restaurant franchise, you are also expected to pay royalties to cover advertising, menu flyers, and other support the corporation gives you throughout the year. When you consider these costs versus the costs of launching and running an independent restaurant, there really isn’t much difference. But the idea of a franchise is that you will make all your initial investment money back sooner than if you started an independent restaurant. For either venture, you must be able to live with the idea of substantial financial risk. If that would cause you a lot of sleepless nights and chewed off fingernails, opening a restaurant probably won’t suit you.
Do you value security over freedom?
While you won’t have the creative freedom to add new menu items, dream up clever advertising jingles, or design the interior, you can feel secure knowing that the brand you are selling has already been successfully established. A franchise is probably not often going to serve you as a creative outlet. If your entrepreneurial spirit requires unlimited creativity, this is not the job for you. However, if you find running a time-tested system that works, instead of trying out a new one to be appealing, you will be pleased with the decision to open a franchise.
Finally, talk to the experts
Another great way to decide if opening a franchise would bring you happiness in your career, is to speak to someone whose doing it now, or done it before. If you have any questions about opening a franchise, feel free to post it here and we will respond.
This post was written by Natalie, on behalf of Checkers and Rally’s Franchising. To learn more about their company and the franchising opportunities they offer, visit their website at http://checkersfranchising.com.