When going into business, there are a million questions you may have concerning the right form of business ownership. You may decide to form a company, go into a partnership, or choose to go solo. One of the best ways to enter any industry is by buying a franchise. This is because such business models are already established, and their brand has gained traction among the target customers. This means you will start at a much higher level with predictable revenue and expenses.
Franchises span many industries, including the fast food niche. Owning a burger franchise could be a great idea if you are geared towards starting a fast food joint. As pointed out above, a burger franchise ensures that you don’t start from scratch regarding brand recognition and you will be able to tap into a massive customer base the leading company has been able to attract over the years.
If you are interested in owning a burger franchise, below are some of the steps you should follow so that you get everything right from the word go.
Prioritize and Narrow Your Focus
Since priorities change, it is essential you have a list that guides you. For instance, you may want to own a franchise for a large established brand such as Checkers & Rally’s, or a rapidly growing brand.
You should also list your expectations concerning the level of training and support you require from your franchisor. In the event you want to operate your burger franchise from a specific geographical location, it is also important to list this as a preference.
Explore the Various Franchise Options during Shows
Once you have your hit list intact, you now need to have detailed question and answer sessions with potential burger franchisors. Since it is entirely impractical and time-consuming to meet with each franchisor at their head office, you may want to target expos and shows.
In these shows, ensure you’re dealing with genuine franchisors and not brokers or a business opportunity. Real franchises have uniform franchise offering circular (UFOC) or franchise disclosure documents (FDD) filed with the Federal Trade Commission. Secondly, show up in these expos with a list of target companies for your burger franchise.
Dig into the Details
When you are done reviewing the burger franchises profiles and engaging with their representatives, you should come up with a shorter list of your target franchise opportunity. At this point, you should go down into the details by obtaining a copy of the UFOC or FDD for the various franchises of interest. With these documents in hand, start comparing startup costs, potential revenues vis-à-vis ongoing expenses, rates of expansion, list of former and current franchisees, as well as any ongoing support you will be given.
Engaging Former and Current Franchisees
Independently engaging current and former burger franchisees for the company you are targeting is a critical part of due diligence. Introduce yourself to them, let them know you are on a mission to find information to help you own a franchise just like them and beg their honesty as far as the business environment is under the particular franchisors.
The last step is to visit both the franchise location as well as their competitors. This will enable you to get lots of information and exciting concepts that can be a gamechanger in your own burger franchise.