Joel Libava
How are you going about your search for a franchise?Are you hitting the franchise opportunity websites hoping to find an opportunity that jumps out at you?
If so, that’s certainly one way to do it. It’s not a very efficient way to find a franchise to buy, but it’s a “way.”
Or, like a lot of people, are you focused on one area-like food franchise opportunities?
Let’s talk about them.
Food Franchises Are Everywhere
Unless you live in a super-small town, chances are, you’re within a mile of a food franchise.
If you’re in the mood for a hamburger, you can go to McDonald’s® or Burger King®.
Feel like a Taco? Head on over to Taco Bell®.
Would a piping-hot personalized pizza from Blaze Pizza hit the spot?
Does a sandwich sound good right about now?
Better yet, does buying a sandwich franchise sound more appetizing?
So you can be your own boss?
The Appeal Of A Food Franchise
If you’re like most people looking at franchises, food franchises are pretty easy to visualize owning. (Probably more than any other type of franchise.)
Part of the reason for that: visibility, because Food franchises can be found on main roads, off freeway exits and in malls. They’re easy to see.
Another appeal; familiarity. Who hasn’t visited a fast food restaurant?
And who hasn’t noticed how busy they are. Morning, noon, and night.
Then there are the numbers. The dollars coming in.
For example, let’s say you own a food franchise that brings in $1500.00 a day, on average, 7 days a week.
Multiply that by the number of days in a year, and your business is doing (hold on, I’m grabbing my Royal calculator), $547,000 in annual sales. And, I know you’re going to take my advice and eventually own multiple units.
So, based on that, if you own, say, 4 food franchises in your local market, and they’re each doing $547,000 annually-with your take* being around 10-12%, you’re making $200,000 a year. Not bad!
*Profit margins vary. Food costs, rent, payroll, and royalties etc. all come into play.
But should you look into food franchise ownership?
The Skills Needed
Food franchises aren’t for everyone. Certain skills are required.
For instance, you shouldn’t look into food franchise ownership unless you have management skills.
That’s because you’re going to be managing a lot of things. Like:
- Inventory
- Vendor relationships
- Expenses
- Sales
- Marketing
- Employees
And more.
But being a good manager of things-and of people, is not the only skill you’ll need to have in order to own and operate a successful food franchise business.
To find out the other skills you’ll need, read the post I wrote on this topic at Franchise Direct.
Finally, if you don’t want to do this alone-if you’d like to have someone by your side as you explore, research, and maybe even buy a franchise, I can help. Contact me here.
Burger King franchise opening courtesy of F.E. Warren Air Force Base
