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Food Franchise

Even though there are many complex issues with running a food franchise, you have to realize the distinct advantages and disadvantages that come along with it. In this article, we will analyze both these points and keep you better informed on the process of running a successful food franchise.

Advantage of running a food franchise

There’s an existing demand for food franchises as consumers tend to be on the look out for these franchises i.e. Burger King. Besides that, financial institutions are generally more lenient in funding these traditional franchises as they can look at the previous track record of the franchise.

Disadvantages of running a food franchise

There’s a large initial capital outlay due to rent , renovations and bulk purchase of food. You would have to work long hours and there’s a relatively low margin associated with running a food franchise due to the price sensitivity of the food sold.  There are also many guidelines that food franchisees have to follow so that the food is safe for consumption.

It would be advisable to work in a food franchise before embarking on your journey on owning one.

This Business article was written by David Siu on 7/15/2005

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