PRESENTATION OUTLINE
Why the Food Franchising Industry Is Thriving . . . and Increasingly Multi-Unit Dominated
It’s often said that franchising allows you to go into business for yourself, but never by yourself. What this means is that when you become a restaurant franchisee, you’ll oversee the hiring, training, and day-to-day operations of one location or juggle multiple locations within the framework of a multi-unit franchising setup.
While this may sound like an extremely entrepreneurial undertaking informed by perhaps hundreds of hours of research and deliberate financing, remember that the franchisor is there to help you along your journey.
Topics of Discussion
- Why the Food Franchising Industry Thrives Rain or Shine
- A Winning Formula and Accessible Financing
- Food Franchising Industry and Multi-Unit Domination
- Benefits of Multiple Franchise Units
1. When you join a restaurant franchise, you can expect to benefit from name recognition and nationwide advertising initiatives as well as financing, training, and operational assistance. You’re essentially banking on years, or even decades, of widespread name recognition and the fact that customers enjoy the atmosphere, food, and culture of that restaurant franchise.
2. Taking a look at in the country, it shouldn’t come as a surprise that the most successful franchises overall tend to be food franchises. Food franchises capitalize on a winning formula by which franchisors provide franchisees a detailed roadmap (for example, site selection informed by demographic studies and streamlined staff training) of how to ride the wave of widespread name recognition and time-tested routines. What’s more, financing for a restaurant franchise is relatively easy to acquire since banks understand the high chances of your success, the local area, and the equipment that your operator is likely to require. This means that startup financing shouldn’t pose as many challenges as other franchising industries, and you may even receive extra financing help from the franchisor.
3. Did you know that 53% of the 450,000 franchises in the United States operating today are controlled by multi-unit owners? Multi-unit restaurant ownership is even more popular: over three-fourths of restaurant franchisees now oversee multiple food franchises. The Wall Street Journal ran an article a few years ago discussing the fact that restaurant chains actually favor awarding new outlets to franchisees who already own more than one location. From a franchisor’s point of view, franchisees who are multi-unit are more attractive because of more seamless access to capital and the ability to offset possible underperformance at one location with stellar performance at other chain locations in the area.
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.
