For those restaurant entrepreneurs who want to be fully immersed in a restaurant and jump right into it, buying a franchise or a restaurant that’s already up and running is an option the Frog would suggest. Buying a franchise eliminates the planning and heavy management that goes along with opening up a brand new restaurant.
Before buying, consider these pros and cons from One Fat Frog.
Pros:
* A franchise is a proven brand.
There is a consistent product with an already successful menu that customers have grown to love.
*Loyal customer base.
Steak N Shake has its loyal mid-day customer base, as well as its late night crowd. Happy hour half-priced shakes guarantee the steakburger franchise business between 2-4 a.m. and p.m. for the lunch and late night outing crowds.
*Support from franchiser.
New menu items and logo designs give restaurant franchise owners an update in the restaurant business. The Frog says that this can help the restaurant get a leg up in the competition.
Cons:
*Following franchise policies, expectations and menu.
This involves training staff members and adhering to policies 24/7. The Frog knows you can’t exactly include that fantastic family fish dish with the orange marmalade and sweet peppers if the franchise you just bought is a fast food burger hot spot.
*Not too much wiggle room for creativity.
Similar to the previous con, you can’t change the menu, the logo, the name. You sign away your creativity when you buy a franchise because you are paying for something that was created by another restaurant owner. The Frog enjoys its creative freedoms, but still applauds franchises.
*Fees.
When restaurant entrepreneurs buy a franchise, they are also paying for the license, set-up and franchise fees, as well as paying a portion of sales each month.
Weigh the good with the bad before buying a franchise restaurant. If the cons are outweighing the pros, then start from scratch and build a brand of your own. As far as the Frog is concerned, as long as there are hungry customers somewhere, there will be a need for a restaurant.