How to Decide if a Food Service Franchise is Right for You

Not everyone has the right personality and mindsetIf around 60% of restaurants fail within 5 years, that
to launch a successful food service franchise. Somemeans that a healthy percentage of new restaurants
that think they do may find that they are unhappyremain profitable and successful. If you're certain that
while others who don't initially consider a food serviceyour independent restaurant will be successful in your
franchise decide that it's exactly the right path forarea, then the odds are good that it will. Building a
them. When it comes to choosing a food servicerestaurant from the ground up can add up to
franchise or building your own restaurant brand fromhundreds of thousands, if not millions of dollars when
scratch, there are several points to consider beforeyou factor in brand development, menu creation,
choosing a path.advertising, establishing procedures, equipment
Can you live with an established process?purchase, etc.
In order to run a successful food service franchise,You'll also need to have a cushion for unexpected
you'll need to possess an entrepreneurial spirit, butcosts and to help you navigate through difficult times.
also be willing to "stay within the lines" of the alreadyIf you truly don't have all of the money you need,
established operational procedures. For some people,you may be placing yourself in a very vulnerable
owning a business where they must conform toposition. Another benefit of food service franchises is
preconceived ideals that they may not necessarilythat you can generally get into the opportunity with
whole-heartedly agree with, is little more than beingmuch less starting capital than if you were to build a
someone else's employee. If you have very strongrestaurant from the ground up. That's because the
convictions about doing things your own way,menu is established, the promotional materials
ownership of a food franchise may not be for you.created, the paperwork streamlined, and advertising
On the other hand, the reason food service franchisecosts are shared between the entire food service
companies have such systematic processes, isfranchise network.
because they are profitable. A study conducted byUltimately, deciding whether or not food service
Ohio State University shows that between 57% andfranchising is right for you depends what will truly
61% of new restaurants fail within 5 years ofmake you feel satisfied. If your ultimate dream is to
operations. Some of these are food servicecreate your own menu and restaurant ambiance but
franchises, but more are independent restaurants.you don't have the funding to get it off the ground,
With such a steep rate of failures, having a systemperhaps your efforts are better spent raising capital.
to depend on is considered by many to be one ofHowever, if you like the idea of entering into an
the most significant benefits of food serviceestablished business with a proven success record, a
franchises.food service franchise may be the ideal solution for
Consider your financing limitationsyou.