If you are considering opening your own restaurant, you will need to have a good menu, unique content, unique food, good locations, great advertising and a great staff just to get started.  Not only are there a lot of start up risks involved with new restaurants, you have to deal with developing product and name recognition.  If you decide to buy into a fast food franchise instead, which is in my opinion, a better way to go, you get to build on the existing brand and name recognition that is already in place.  Have you heard of McDonald’s, or A&W, or Pizza Hut, I am sure you have.  That is name recognition and buying a franchise is exactly that, a head start on the name recognition and service.

Buying a franchise does have it’s benefits. Not only do you get great support from the parent company, but you will likely get instant customers once you open the doors, simply from the name of the business.

Fast food is here to stay, it has been here for over 75 years and shows no signs of slowing down. Even with today’s diets and health conscious people all over the country, fast food items that include burgers, fries, tacos, subs and more sell very well in every corner of the nation.  The biggest reason for the success of fast food restaurants today is time… people don’t have any of it in their personal lives and don’t have the time to cook for their own families. Consumers and people in general don’t like to change ( too much ) and generally stick to their regular brands, restaurants and fast food chains.  The customers you target are extremely loyal to their favorite places because they know that they get the same food every time.

Most fast food franchises today do require significantly more capital and net worth as a franchise owner then some of the other low cost franchises I have discussed in the past.  Generally, the higher cost is from having to setup a stand alone building and busy location.  The better the location, the higher the real estate prices are, which is usually factored into the expected franchise fees and start up costs.  In some cases, the franchise company itself pays for the buildings and locations, but that is not always the case.

The great thing about fast food franchises is the national marketing that is taken care of by the parent, corporate office.  As a fast food franchise owner, you benefit from the television and radio commercials that are played during high profile events without needing to pay for the full cost yourself.  The corporate franchise office handles all your marketing needs.   They will also supply you with the tools and business software required to handle all your inventory, sales, employees, leasing, insurance, ordering, vendor management and a lot more.

There are draw backs to owning a franchise over owning your own business.  One is the maintenance and franchise fee costs. You have to continually pay for the privileged to be a part of the franchise network.  Some people see this is a down side to franchise ownership, but I actually see it as a benefit.  You pay a nominal fee to be a part of a larger cooperation and network of business, support and advertising that you may never achieve on your own as a sole business owner.  Then again, if you do decide to franchise your own business or business idea, then you are talking about managing the entire franchise network yourself.  There are a few ways to look at it, but in the end, the benefits of buying into a franchise far outweigh the negatives.

Owning a franchise may seem like an expensive and daunting task for some people.  However, you need to realize that you are paying a nominal franchise fee to get the training and support to get a business off the ground.  The business itself will pay for the initial franchise costs very quickly, usually within the first 1 or 2 years of business. The cost to owning a franchise are worth it, you will likely not make the same mistakes as a new business owner might, you will have the training, support and backing you need to be successful.  The franchisor wants to see you succeed and will do what they can to help you get there.  If you are comparing the cost of a new restaurant business to a new fast food franchise, then you might just be surprised on how it may be cheaper in the long run for you to get into a fast food franchise.