Opening a fast-food franchise Essay

Opening a firm- intellectual nourishment enfranchisement can be a very rewarding venture. Consumers ate as much as US$ cx billion worth of fast-food in the linked States in year 2000 alone, a melodramatic increase from only US$6 billion in 1970. According to The discipline Restaurant Association, this trend continues to be sight as fast-food sales grow at a rate of 5% per annum to an estimated US$163 billion by the end of 2007 (Max salutary, 2003). This gives us the idea that a fast-food franchise is potencely a very profitable occupation option.However despite this implication, an average of deuce-ace out of twenty-five franchises of major fast-food corporations button up down at the end of either fiscal year (Maxwell, 2003), which tells us that tho opening a fast-food franchise does non guarantee success in the business. thus there is a need to notice certain guidelines in order to increases the chances of come through in the fast-food business venture. The first fla vor is selecting an usurp fast-food place. This could be a entrap of property that you own or show to lease.It is of prime importance that you first adjudicate whether or not your intended come out is fit for a fast-food franchise. Some franchisors require you to follow specific guidelines in selecting a internet come in while new(prenominal)(a)s may purge require you to merely choose from a list of sites that they offer. Sound evaluation of a prospective site involves a examen of 1. ) sanitization, 2. ) consumer base, and 3. ) competition (Hogan, 1997). A fast-food site essential be in an area that is relatively sanitized.You should never choose a site that is next to a junkyard or other similar structures. The best sites are placed in places that have obvious potential consumer bases such(prenominal) as near a school where the schools students and readiness members might comprise a unconditional consumer base. Unfortunately, there are usu bothy other fast-food ou tlets already installed in the best of fast-food site areas, which doctors it fundamental for you to first analyze the train of competition in the immediate area and whether you would be able to stand up to it.The second step is to select an discriminate franchisor (Hogan, 1997). The fast-food that you will choose should be in demand to your prospective consumer base. You can go on a survey on the food preferences of people in your prospective site in order to have a better idea of which franchisor to select. It is also important to select a franchisor that has a well popularized trademark and a proven pattern for good business. This is the main advantage to acquire a franchise as opposed to starting a new fast food joint from scratch.Aspects of a fast-food franchisor such as advertising, good will, and favorable sanitation reports all trickle down to one-on-one franchises. Furthermore, a well run franchise should be able to assist a franchisee on everything, from site sel ection and until now lease negotiation to staff training, ingredients informatory and operations monitoring. The last step is to make the proper arrangements with your selected franchisor (Hogan, 1997). This involves settling a bend of fees including those for initial franchise, royalties, and other miscellaneous fees for advertising and promotions.This step also includes hiring and training mandatory staff and setting up the selected site. With all those taken cared of, what remains to be make is to procure stock for the food to be served and then you are good to go. Franchising is a potentially profitable business option. Anyone who is thought about making such a venture should first look for an appropriate site and select a genuine franchisor before going into the detail of making final arrangements of setting up a franchise.