Restaurant franchises – Are they worth the expense?

Restaurant franchises appeal to many entrepreneurs who are pursuing the American Dream. After all, you get to own a widely recognized eatery that (hopefully) will be frequented by hundreds of local residents each day. If your restaurant is wildly successful, you may even have the eventual opportunity to sit back and let the business run on auto-pilot – giving you the time and money freedom you’ve always wanted.

But, realistically, the path to running successful restaurant franchises isn’t so easy. Starting one of these restaurants typically requires a serious commitment of capital, time and energy. And, if all the right pieces don’t fall into place, then you may never fully realize the dream that the franchisor promised.

 

Before you continue your search of restaurant franchises, here are a few things to consider.

Got capital?
The biggest restaurant franchises typically only work with well-capitalized partners who are prepared to make a substantial investment in the business. Opening just one location could require several million dollars in start-up capital, aside from the funds you’ll need to keep the business running.

Let’s take a look at just one example: a Romano’s Macaroni Grill. According to franchise disclosure agreements at FranchiseDirect.com, a Macaroni Grill will require start-up costs between $2.2 and $4.9 million – just for the first 3 months of operations. $40,000 goes to the franchise fee alone, while construction costs and kitchen equipment make up the bulk of the investment.

Not only that, but some of the major food chains sometimes require you to invest in multiple locations at once. If you have tens of millions of dollars to invest in these restaurant franchises, then more power to you. But just keep in mind that it could be decades before you get all that money back in your pocket – if ever.

Get ready to cook.
Unless you have years of experience managing successful restaurants, be prepared to tackle some of the core responsibilities yourself. Many chain restaurants will require you to be very hands-on with the operations. This could mean you’ll be doing much more than managing the finances and telling others what to do. You’ll likely find yourself in the kitchen, helping to prepare the foods your customers order. That may be a benefit to some people, but becoming a chef isn’t every entrepreneur’s dream.

Wanted: restaurateurs with experience.
Not surprisingly, the major food chains don’t want some Joe Schmoe starting one of their restaurants. In order to be considered as a potential franchisee, you often have to demonstrate substantial experience running other successful restaurants. Most new entrepreneurs don’t have this experience, thereby limiting the business opportunity to wealthy investors with long histories in the food industry.

This is only a short list of potential disadvantages of starting your own franchise restaurant (Learn More). There’s also the time commitment, the long hours, the energy you’ll need to expend every day, and the tight competition, among other factors.

 

If you’re looking for a smarter alternative to restaurant franchises that is highly lucrative

and accessible to nearly any investor, then take a look at HUMAN Healthy Vending.

 

We are revolutionizing the vending industry with healthy products and innovative technology, while letting our independent operators reap the profits. We offer a proven sales plan generating the industry’s highest profit margins, and our market is wide open. From the nearly instant cash flow to the nutrient-rich products themselves, this is a business you can feel good about.