Investors looking for a fresh opportunity and office workers tired of the corporate grind and wanting to become their own boss are equally attracted to fast food franchises.
There’s a lot of status involved in owning your own restaurant, and it’s relatively easy to find startup capital for fast food franchises because lenders understand that you’re teaming up with an established brand and an established way of running things. That’s one of the chief draws of owning a fast food franchise unit: widespread brand awareness.
The biggest fast food companies are usually 80 percent or more franchised locations that provide a win-win opportunity for the franchisor and franchisee looking to capitalize on the stellar brand awareness and public appetite (pun intended) for that particular fast food brand.
People like knowing that they’ll receive the same great experience no matter what location they visit.
The vast majority of America’s restaurant franchises are now multi-unit—at last estimate, around 77 percent of restaurant franchisees owned multiple properties—because of easier access to financing, stronger corporate relationships, streamlined training, and a more acute awareness of the emerging markets that are a surefire means of successful expansion.
Multi-unit franchise owners also talk about having more control over their locations and more autonomy from the franchisor when it comes to where to set up shop next.
From the franchisor’s perspective, another advantage to having multi-unit franchisees is that it greatly simplifies creating and implementing a powerful marketing strategy.
This makes for more effective marketing overall. Franchisors often find it easier to divvy up regional ad money among a few, often very experienced, franchisees as opposed to a dozen or more franchisees for one region.
Having fewer cooks in the kitchen, so to speak, usually also translates into a more unified and powerful marketing message overall.
The timeless mantra when it comes to making sure that your franchise succeeds from day 1 is, of course, “location, location, location.”
What this means is that you need to pick a franchise location that’s in a high-traffic area and that suits the type of franchise within which you’re working.
As an example, choosing a street-corner restaurant location situated by office buildings might be ideal for raking in lunch hour business, while choosing a highly visible location makes sense for more impulse purchases in, say, the clothing industry.
While the “location, location, location” rule applies to most franchise industries, it really applies to food franchises.
Malls are one of the most high-traffic areas imaginable, and your customers are usually going to malls with the explicit intention of making a few purchases . . . and perhaps grabbing a bite to eat afterward.
This means that the franchise potentially can save money on advertising, and franchisees can focus more of their energies on building a strong team of delegation and oversight around them, which is hugely important when you’re talking about multi-unit franchise ownership.
At first, this might sound paradoxical: How could overseeing multiple brands and multiple locations be easier than overseeing one franchise, one location, and one brand?
The answer is that sometimes siding with a franchise that owns multiple brands—for example, Global Franchise Group, which owns Great American Cookies, PretzelMaker, and Marble Slab—can make it easier to have all of those fast food stops in one location, which makes multi-unit oversight and management that much easier.
To learn more about why opening a fast food franchise with Global Franchise Group is such a great idea, contact us today!