The dream of business ownership is common to almost everyone.  It transcends races, creeds, economic backgrounds, and education levels.  Recent high school graduates as well as graduate students daydream of the opportunity to be the boss, the master of their own destinies, to build something from the ground up.  Hard work, long hours, and low pay –at least at the onset– are expected.  No task is too menial; no chore is too hard for the willing would-be business owner.  Business ownership comes in many forms.  From direct mail facilities to gyms, online vending, or even sales consulting, the list of opportunities is almost endless. Yet one of the most famous opportunities that is available to many an entrepreneur comes in the form of the food franchise. 

Food Franchises Are Usually Mature Business Models

Believe it or not, a food franchise is a turn-key business.  Whether you favor pizza, hamburgers, ice cream, chicken, or any other kind of food imaginable, odds are that there is a franchise opportunity available for you!  What makes a food franchise such a desirable business is the fact that the concept, i.e. the type of food it offers, the execution, such as the restaurant design or theme, and the delivery, which covers items like marketing, packaging, or signage, are already pre-tested, tried, and found to be successful. Any newly minted franchisee will be rewarded with a sparkling restaurant, excellent food preparation techniques, first class products, spiffy advertising slogans, banners, and signs, and a tried and true approach to hiring, training, and maintaining a great support staff. In addition to the foregoing, while some hands-on knowledge in food service is always a huge plus, it is not required.  On the contrary!  Account savvy individuals, strategists, and human resources oriented folks will do just as well as seasoned short order cooks or pan up chefs. 

But Buyer Beware - Competition!

Nonetheless, a food franchise is not for the feint of heart!  It takes more than mere peanuts to buy into a successful franchise; for example, to realize your entrepreneurial dream of business ownership in a well known submarine sandwich franchise, the initial expense is upwards of $75,000, but may actually be as high as $150,000. If you are a homeowner, this might mean taking out a second mortgage on your family home.  If you do not own real estate, a sizeable retirement account you wish to dip into, or a healthy savings account that would enable you to turn this dream into a reality, this may make for long hours at the bank, poring over business plans, forms, and tax returns from years past.  While this should not deter a serious minded would-be business owner for very long, it may stop the starry-eyed dreamers who have not thought of the nuts and bolts of serious business ownership from incurring debts they are not willing to risk. In addition to the foregoing, it is important to remember that while this business opportunity is indeed tried and true, it is also not guaranteed, and some or all of the investment may be lost.