Owning a fast casual franchise can be a smart investment. Learn the pros and cons of this type of business, so you can make a smart investment.
The Pros
Starting a new business can be challenging, especially if you have never built a business from the ground up, or you’re trying to open a business where you can capitalize on upward growth and trends in a sector you are unfamiliar with. The good news is, opening a fast casual franchise restaurant gives you the opportunity to do just that.
Help With the Legwork
Opening a fast casual restaurant within a proven franchise system takes out a lot of the startup legwork you would have to tackle on your own as an independent restauranteur. The market research, product creation and assessment, location optimization and more are rolled into the initial costs of opening a franchise, backed by the brand’s experience and success.
Startup Costs
Initial startup costs are typically lower for opening a fast casual franchise location than that of an independent or even QSR franchise, and they break down in a clear way that shows you exactly what your investment is paying for.
Many restauranteurs will require loan assistance, no matter the type of restaurant they choose to open. SBA loans, for instance, have strict eligibility requirements. However, since they reserve a portion of their loan allotment specifically for franchisees, it may be easier to qualify when your goal is to open a fast casual franchise with a proven track record.
Brand Recognition
Another benefit of investing in a fast casual franchise is the fact that franchises provide you with built-in name recognition from day one, something that can take a lot of time (and advertising money) to build on your own. When customers see your restaurant’s name on the door, they already know what to expect, which is major value added.
Marketing Wizardry
Fast casual franchises can promote their brand, and in turn, your business, through far-reaching marketing campaigns via online advertisement, television, radio, and other highly visible platforms. These brands have the funds and the resources to keep the business growing. As a franchisee, you will benefit from the experience and expertise of a dedicated marketing team whose sole job it is to build the brand.
Training & Support
One of the biggest draws of opening a fast casual restaurant within a franchise system is the benefit of an established training and support network. Franchises are made successful by their proven methodology and business model which can be replicated and shared to maintain a sense of continuity between all outposts.
A fast casual franchise will give you all the tools necessary to help you run your restaurant as seamlessly as possible from the start, with training on everything from leadership methods to daily operations to customer service. There is no need for trial and error, as a franchise will already have the techniques to best optimize your business.
The Cons
Like with any business venture, owning a fast casual franchise will be a unique experience better suited to some entrepreneurs’ needs and goals than others. What may be upsides for some can feel like drawbacks to others.
Being Part of a Brand
For some business owners, the idea of being a part of a larger operation doesn’t sit well. As a franchisee, you will be responsible for the day-to-day operations of your restaurant, but you will also operate under the rules, guidelines, and contractual obligations set forth in your Franchise Disclosure Agreement (FDA).
All franchises require the signing of an FDA, which entails all the “dos and don’ts” that you will be required to follow as a franchisee. If you stray from the contract, you could face fees or penalties, jeopardizing your business. FDAs can mean less independence and possible repercussions if you decide to walk away from the business for whatever reason before your contract is up.
Startup Costs
Yes, this was also under the “pros.” While the startup costs of opening a franchise should be laid out clearly and include everything from real estate costs to furniture and fixtures, training, advertising, and more, the initial costs may prove prohibitive for a restauranteur only interested in opening a small one-off restaurant.
On top of opening costs, most franchises require ongoing royalty payments for use of the brand name and system of operation, including marketing and advertising.
Reputation
Just as brand recognition can be a major selling point for owning a franchise, it can also become detrimental if any broader problems or scandals should befall the brand. The best way to avoid any unforeseen controversy is to really do the research into specific franchises and find the one that best aligns with your beliefs and approach to business.
Enjoy All the Pros With Your Pie
As the nation’s first fast casual customizable pizza concept, Your Pie is committed to creating a memorable and amazing experience for our customers and franchisees, alike. We take pride in what we do and support our family of owners to do the same.
If you would like to learn more about franchising opportunities with Your Pie, contact us.
