Food franchises are still the most talked about sector in franchising. Most of the people that I’ve advised over the years have had food franchise ownership in their sights-especially at first. And, when I tell people what I do for a living, franchises like Subway®, McDonald’s®, and Quiznos® are usually mentioned by them…and I’m expected to come up with amazing insights as to their viability.
I’m not sure if my insights into these popular franchises are on the money or not, but no one can ever say that I hold back on my opinions of them.
1. Should you buy a Subway franchise?
2. McDonald’s Double Drive-Thru Review
3. What happened to Quiznos?
Food Franchises Are Expensive
Franchise executives that work for the major food chains aren’t plotting against today’s future franchise owners. They aren’t working late into the night trying to figure out ways to rip-off potential new franchisees.
Food franchises are expensive because of the equipment…the fixtures that are needed to make the product. Ovens cost money. Fryers…they cost money, too. There may be a free-standing building to purchase. A lot of things go into a start-up food franchise. And, once a food business is open, payroll, inventory, and maintenance costs are added into the mix.
Food franchises are expensive to open and expensive to operate.
But, they do have the potential to provide a nice financial return, especially for multi-unit operators. It’s a matter of choosing the right one, combined with choosing a rocking location.
Food Franchise Investments
On the lower-end of the scale, food franchises can cost $150,000. Typically, these types of opportunities can be found in strip centers, and have small dining areas. Most of the focus is on take-out.
Franchises on the high-end of the investment scale feature large dining areas, large staffs, and a free-standing building. Gross sales start approaching $1 million or more. (A lot more, sometimes!) And, their up-front investment amounts are in the mid six-figures, at least.
Take a look at what my friends at Franchise Direct just produced to illustrate the investment range of food franchises:
There’s an entire page of franchise investment amounts with visuals just like the one above over at the Franchise Direct website.
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