The 4 Greatest Challenges (and Opportunities) All Potential Franchisees Face

Running a fast food franchise store comes with challenges and advantages unique to the enterprise. Following are four of the most prominent in each category.

Topics of Discussion

• Four Advantages of Owning a Franchise
• Four Notable Challenges in Owning a Franchise Store

1. Experience: A franchise that’s been around a while has accumulated information pertaining to operations. When buying into an established fast food franchise, you’re buying into all that knowledge, and don’t have to learn lessons the hard way through trial and error disguised as strategy.

2. Training: Prime franchises offer implantation that’s basically turnkey; that is to say, operations have become streamlined enough that when a store is brought into operation, franchise professionals help ensure it functions as intended. You’ll be trained in the operation of the new facility.

3. Products/Services & Advertisement: A franchise has already been established in the market, so the “marketing” has been done for you. Services or products rendered can be purchased in bulk — a smaller business has marketing and product-related expenses that simply aren’t necessary with an already-established franchise.

4. Continual Research and Development: It’s to a franchise’s advantage to continue discovering and implementing streamlined methods of operation. Not only will they advise you on the best business practices they’ve discovered for the franchise over the years, and those new ones which have just been developed, but they’ll continuously refine the product or services sold in your store.

1. Working Inside the Franchisor’s System: An established franchisor has a system of operations that requires strict adherence. While it provides liberty in many traditional senses against the difficulty of entrepreneurial independence, it is structured with certain conventions that must be adhered to.

2. Initialization Risk: Franchisors have standards here, and they’ll be similar to those your own budget introduces. This risk is diminished from individual exploits, but it is definitely still a consideration.

3. Marriage and Its Consequences: Getting involved with a franchisor is, in many ways, like being married. You’re in a partnership that allows for some freedom, but it’s a partnership that is legally binding and lasts for a long time. The solution here is to choose carefully, and fully commit once the choice has been made.

4. Battling False Expectations: Getting a franchise store will very likely yield financially in the long run, but it takes time and effort. You’ve got to be prepared to be realistic and work hard, and in the end there’s a high likelihood of that work paying off.

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Disclaimer: This information is not intended as an offer to sell, or the solicitation of an offer to buy, a franchise. It is for information purposes only. Currently, the following states regulate the offer and sale of franchises: California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota, Virginia, Washington, and Wisconsin. If you are a resident of or want to locate a franchise in one of these states, we will not offer you a franchise unless and until we have complied with applicable pre-sale registration and disclosure requirements in your state. Franchise offerings are made by Franchise Disclosure Document only.