US Franchise Investment

Create A Franchise Business Plan

Franchise restaurants are among the most popular franchise opportunities in the US. Opportunities include a host of fast food restaurants and sit-down establishments. Oftentimes, franchise restaurants appeal to first-time or novice business owners, because they come with a ready-made formula for success. It's important to note, however, that not all chain restaurants are a success.

Advantages and Disadvantages of Franchise Restaurants

When weighing a decision about whether to invest in a franchise, it's best to consider the advantages and disadvantages.

Possible advantages include:

  • Starting right away. The name, menu, restaurant design and advertising are already provided.
  • Owner support from the parent company. The operations manual provides answers to many questions that might arise.
  • Vendor relationships. Food supplies can be bought cheaper due to franchise buying power.

Possible disadvantages include:

  • High start-up cost. Buying into a popular chain restaurant can require hundreds of thousands of dollars or more.
  • Royalties. A percentage of gross revenue must be paid to the parent company.
  • Tied hands. Owners are not allowed to make changes to the menu or decor at their discretion.
  • Rules and regulations. To protect their reputation, parent companies impose strict guidelines for how the business must be run.

Working with a business broker can help potential buyers determine if they want to invest in a franchise or buy an existing business. RPI Commercial is a business brokerage with extensive experience working with a variety of different businesses. RPI can be reached by calling 1-877-549-5210 toll free or sending an email to info@rpicommercial.com for more information.