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In almost every country across the world, there are food franchises. We live in a time where people are constantly on the go, and as such they need quick access to some of their basic necessities; especially food. This is why this specific niche is the most popular type of franchise. However, the thought of opening such a franchise, of a pre-existing and established brand, can seem easy at first glance; however upon careful analysis, it will then seem daunting.
Business, however, is not for the faint of heart.
It takes talent, passion, tenacity and unwavering nerve to go after your dreams. Therefore, do not be in despair; you can accomplish your goal with proper planning, concrete research and access to resources. That is why we took the time to compile the necessary information to help you understand the food franchise business.
One of the first things to consider is the cost of owning and operating such a business. This will vary, depending on the franchise of interest.
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However, you are expected to have at upwards of twenty to thirty thousand dollars. This usually covers the initial buy-in. You are expected to gain access to the brand identity, technological framework, management support, public relations and marketing resources as well as employee training. This list will expand depending on the brand that you are affiliated with.
Other costs include the initial investment required to procure things like permits, equipment, rentals, insurance, and inventory. In addition, you will need cash on hand to run the day to day business and ensure that the business is successful its first year.
According to Entrepreneur, starting a franchise with some of the most popular brands can range anywhere from two hundred and seventy-five thousand to two million dollars.
Krispy Kreme Doughnut was at the lower end of the spectrum while Carl’s Jr. Restaurant was at the upper end.
Another popular entity, McDonald's, requires that you have a non-borrowed sum of over three hundred thousand dollars. Most of their franchisees, take over allocation that is already in operation; very few begin at a new facility. You must have 40% of the cost, compared to other food franchises that require you to have just 25%.
Within the USA, anyone interested in having a Subway restaurant must have a capital sum starting at $100,000. In addition to this, you must have capital to run the business for three months. After which, you will need to hand over a fee, of eight percent of your gross earnings.
You will need half a million dollars to run a Wendy’s franchise. At the same time, you will need a million dollars in liquid funds for any eventualities. In America, there are no franchise opportunities; however, if you are in Canada, the Caribbean or anywhere else in the world, you can submit an application.
This company has two different categories for their franchises. With Domino’s Pizza, you can either be an internal franchise or an external one. The former is run by former general managers, who have proven themselves with the company, for upwards of one year or more. The latter kind, are owned by people who have the required skill set and are assisted by a training program. Their fees range from zero done for the first group and over $25,000 for the second category.
Therefore you have to give careful thought when deciding on which franchise is best for your area. Completing a needs analysis is a great way to identify which franchise is best. Selecting the wrong food franchise can be devastating to your economic viability in the long term.
A List of Food Franchises and How Much They Cost. (2020, Jun 01). Retrieved from https://studymoose.com/a-list-of-food-franchises-and-how-much-they-cost-new-essay
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