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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.