An entrepreneur steps into the business world with stars in his eyes, a food franchise is a sure-fire way to achieve those dreams. The franchise model comes with its own set of advantages and disadvantages, the advantages out weighing the disadvantages.
A franchise is a contract between the owner of a particular brand (franchisor) and the entrepreneur (franchisee), who is eligible to use the name of the brand or trademark to sell their products or services. Some international popular food franchises which come to your mind are MacDonald’s, KFC, Subway, Starbucks and others. Closer to home we have Tibbs (frankies), Haldirams, Ribbons and Balloons, CCD Cafe Coffee Day, the list is endless.
The franchise business model involves the right to use the brand and its various attributes. It also involves transferring of valuable information from the franchisor –
- Amount to be invested
- A ready forecast on ROI; return of investment
- Guidelines to conduct business and attracting and retaining customers
A food franchise has an added advantage-
When it comes to eating out, most customers prefer standardized food from a known brand. This is a big advantage as a product of a known franchise has already proved its staying power and is not a new fangled fad. This is the first step in decision making while taking up a Food Franchise.
It’s easy to approach lending institutions for finance needs as they are familiar with real estate and equipment needs of running a food joint. These sources have high faith in the high revenue output of a model food franchise.
Past Performance History
The existing outlets of a popular, franchisee which have been functional for a while make it easy to track and verify their past record of success. This helps you to take an up-to-date investment decision.
A food franchise has a great deal of charishma and a glamour quotient associated to it, especially with a people who run a food franchise. This prestige symbol associated with the food franchise business excites many potential franchisees.
Most food franchises have uncomplicated operational procedures.
Many of them don’t involve the hassle of on-site cooking of a product.
Many of them are equipped with a delivery system which transports ready-to-serve food products or products which have to be put together at the franchise outlet like bakery products, sandwiches.
These are a cakewalk, to take up, as much effort is not required due to standardized output. For more information visit www.coffeehousemountroad.com or call us at +91 9677094230.
3 cheers to Food Franchising!