Hot topics for both consumers and webmarketers on WebmasterRadio.FM
Every Wednesday, 5PM Eastern.
Food Franchises Tips
Coffee Franchise
There is some variety in what is considered a coffee franchise. There are dine-in coffee shops, coffee-making equipment franchises, and drive-through coffee shops. Before investing in one of these, determine which type of coffee franchise appeals most to you. Some franchise agreements specify a geographic territory in which you agree to open and operate a certain number of stores. In order to be successful you'll want to look into many costs including:
• Investment per store • Equipment • Deposits • Inventory • Employee Salaries
These are just a few of the many expenses you'll want to look into when planning a successful franchise venture. It is also a smart idea to build expansion plans into your budget.
Save Tip
Comments
Tip Rating
A Food Franchiise that Beat the S&P 500
Buffalo wings & sandwiches formerly known as bw-3 Franchise Systems posted a stellar performance during 2006 with a 40% growth in stock price following revenue growth of more than 32% and profits up more than 84%; proving once and for all that a food service franchise can be a very good investment! Indeed, even with rapidly escalating stock prices, the ability to beat the S&P 500 is an impressive feat made even more enticing when one realizes this franchise is available with exclusive territory rights in rapidly growing states such as California and Florida!
This rapidly growing food franchise has experienced phenomenal growth expanding from 141 franchises in 2003 to 290 by the end of 2006. However, this isn’t quite as rare as you may expect. According to the University of New Hampshire Rosenberg Center Franchise 50 Index, 42 of the 50 components showed positive gains. Even more impressive, total for the full year 2006 results show the Rosenberg Franchise 50 Index at 17.8% and the S&P 500 Index at 13.6%.
In fact, research indicates that public franchisers routinely outperform the S&P 500 9 out of every 10 years! If it’s a great investment then perhaps it’s time to explore the opportunity for small business ownership as an avenue of wealth creation. Discover other top performing franchisors by visiting Entrepreneur.com where you can research new franchise offerings, compare price and performance plus request information on buying your own franchise.
Save Tip
Comments
Tip Rating
Restaurant Franchises
There are many different kinds of restaurant franchises with prices varying considerably. Some franchise directories allow you to search by investment costs in order to narrow down your search. You may also borrow part of the investment cost if you have a solid track record and a good business plan. You might even want to consider a partner opportunity, partnering with someone who has some money and expertise to add to the plan. Also, some restaurant franchises offer a variety of concepts you can choose from that all operate under the same umbrella. You can pick the concept that suits your budget and interest. Check the Small Business Administration for help in getting started.
Save Tip
Comments
Tip Rating
The Perfect Location for Your Food Service Franchise
What do all successful food service franchises have in common? Simple – people. But not all locations are equal – even those that appear to have the same populations can actually be very different! The very best franchise opportunities are located in areas with a growing population rather than a declining population. So how do you find a great location for your food service franchise?
Here are the best research resources to learn everything you need to know about prospective locations.
1. Stat-USA, www.stat-usa.gov. This provides economic data related to business and market research through the nation.
2. U.S. Census, www.census.gov. A free service, the U.S. Census provides county business patterns and is searchable by zip code.
3. Entrepreneur.com is a great source to locate various food service franchise opportunities available in your area and request more information.
Save Tip
Comments
Tip Rating
Investigating a Food Franchise
Food franchises vary so be sure to make an informed decision when choosing one to put your money into. Some things to be on the look-out for include:
• Food that is appealing and popular in your area • An operation that can be feasibly run • Support services offered by the franchisor • Cost structures • Advertising offered by the franchisor • Brand name recognition in your area
Go out and explore. Go into different franchises in and around your area and see how they are run. Get a feel for what you want and need from a franchise and choose accordingly.
Save Tip
Comments
Tip Rating
Restaurant Franchise Restrictions You Should Know About
All franchise opportunities are subject to various restrictions, for example, a restaurant franchise is often subject to fluctuations due to the price of foods, transportation and competition so knowing restrictions in advance can make a bid difference in your potential profit.
Here are the most common restrictions to make sure you understand when comparing the price and service when purchasing a restaurant franchise.
Purpose/order restrictions. Just because the initial up-front cost is less, you may actually pay more in the long run if you are restricted from shopping for the best price due to having to buy all of your goods or products from one vendor. On the other hand, very large franchise operations often benefit from purchasing in bulk and are able to pass the savings on to individual franchise owners.
Territory restrictions. This is a very common restriction related to restaurant franchise establishments. It is common for the home office to assist – if not require – a specific location. Closely related, there is often an inability to relocate the business once it is established.
Goods or services you offer for sale. Remember, when you purchase a restaurant franchise, you are purchasing the good name and reputation of the entire franchise so don’t plan on offering additional items for sale or changing anything! Most restaurant franchise operations insist upon consistency so visitors know what to expect from one location to another and even from one state to another.
If you are considering the purchase of a restaurant franchise, a great place to begin is by visiting a franchise exposition, such as the National Franchise & Business Opportunities Show, held in various locations throughout the nation. This will allow you to speak to representatives across a wide variety of franchise opportunities and get a feel for what is available. Before attending a franchise exposition, research those restaurant franchise opportunities that are within your budget, experience and interest areas at www.entrepreneur.com. Then when you attend the exposition you will be able to ask questions, compare different services and evaluate your top choices.
Save Tip
Comments
Tip Rating
Restaurant Franchise Support
In addition to the normal franchise support, a restaurant franchise might need additional assistance (menu creation, food cost tracking, etc.) to successfully run a specific restaurant in the industry.
It is important to make sure that things are run smoothly and legally or trouble could lie ahead. Restaurant labor has specific costs and regulations associated with it. Investigate your local laws and be aware of any specific labor laws regarding food labor, insurance costs, and so forth. Some restaurant franchise agreements specify that the owner must be an active owner/operator, involved in the daily business. Health inspections are another unique factor for food franchises. Make sure you know and understand the expectations and costs involved with your franchise.
Save Tip
Comments
Tip Rating
Vending Franchise: A Serious Start-Up
When most of us think about vending machines what comes to mind is coins, penny candy and stale bubble gum, but advances in technology are creating new opportunities for lucrative vending franchise owners!
A vending franchise is a great way to supplement your income or build a full-time income. It allows you to work from home, maintain flexible hours and build your business as slow or fast as you want. Research indicates that Americans now spend over $20 billion annually buying food and drinks from vending machines, but that is only the beginning!
New vending machines accept credit and debit cards while dispending everything from wine to iPods. Movie rentals and music are also making a major showing in the vending franchise arena. For example, AED movie rental franchise allows you to select a movie while at your favorite fast food restaurant or buying gas. Just drop it in the slot to return!
Here are a few steps to get you started in finding a vending franchise:
1. Location, location, location. Vending franchise establishments are highly dependent upon a good location but having a constant supply of people isn’t the only consideration when selecting a location. Security is another major location issue. Losses can be substantial due to vandalism as well as driving distance to service and stock the machine. Be sure to take all variables into consideration when examining your location route.
2. Buy or lease equipment. Some vending franchises include the sale of the vending machines whereas others lease the equipment. Both have pro’s and con’s. Owning may be most cost effective in the long run but can also require a greater up-front cost and become more difficult to upgrade when new technology comes out. Leasing may provide a lower up front cost but be sure to inspect the quality of the actual machines as they can be older.
3. Repair and Maintenance. Almost all vending franchise opportunities have some type of maintenance and repair training, but depending upon the complexity of the machine and your own skill and knowledge, be sure to spend time learning as much as you can about the equipment. New equipment can be unproven in the field so don’t assume anything!
4. Visit existing vending franchise establishments. Speak to other owners if possible. Find out what works, what doesn’t work and why.
Save Tip
Comments
Tip Rating
Food Franchises
Currently, food franchises represent the largest segment of franchises. Food franchises run the gamut from full service restaurant franchises to a coffee house franchises (and everything in between).
Before making an investment in a food franchise, join some online forums and ask questions about the food franchises you are considering. Find out from previous franchise owners the good and bad things about the various food franchises. Discover which ones have good reputations and which have the reputation for not supporting their franchises very well. Many food franchisers end up buying additional franchises because of their success in the marketplace. You may also want to visit a few local food franchises, watch how they operate, and talk to the franchise owner.
