Why are there so many different restaurant type franchises available? It is interesting that franchises and restaurants seem to go together. Restaurants are a good business because there are 300 million people in the United States and they get hungry about three times per day. That is to say humans need to eat to survive. So it makes sense that if you are going to buy a franchise perhaps a restaurant franchise might be a good idea?
Have you considered a new career, perhaps a franchise? The restaurant business is not the easiest business in the world, but if it’s done correctly it can be a very consistent business. Of course any business including a franchise is a risk and there is no guarantee of success or profits. When you work in corporate America you get a paycheck and you know how much it will be, but in a franchise there is a chance you could even lose your investment or not make a profit for three years? That is a little scary to contemplate.
If you open your own franchise there is no guarantee of success either and well most restaurant proformas and limited partnership investments are troubling, I mean you have clauses which state total re-modeling in every ten years and all the costs of everyone, salaries, etc. Then the remodel costs 1-5 million? Oh well there goes your ROI.
With a restaurant franchise there are many stipulations and requirements in the franchise offering circular and you need to be aware of all these. Let’s take a Taco Bell for instance; you must build 10 stores in 10-years, sign the then current franchise agreement, then all of sudden it might say to remodel all 10-stores at once? Ouch. Do you see my point? Please consider all this in 2006.