When individuals are investigating their opportunities for owning any number of restaurant franchises, a similar list of questions is always bound to come up. We encourage all prospective franchise owners to do their research and ensure that all their questions have been answered before making decisions to move forward with a franchising decision. Keep reading for our answers to come commonly asked questions about owning restaurant franchises.
When you take a look at all of your options for investment or growing a business, owning a franchise has its unique benefits. Furthermore, owning restaurant franchises has even more distinct benefits. Owners of restaurant franchises can tap into a streamlined system that works, as opposed to those who may wish to start an independent business. Restaurant franchise owners also benefit from the continuous support of the brand.
The cost will differ depending on the specific franchise you’re looking at. A Hot Dog on a Stick franchise has an initial franchise fee of $30,000. On top of this fee, prospective franchise owners will need to pay other varying costs related to location, store build out costs, and the like. Each franchisee will also need to pay regular royalties to the franchising brand. In the case of Hot Dog on a Stick, the royalties are six percent of gross sales minus sales tax.
In many cases, the franchising brand will have one or more financing partners for prospective franchisees. Many commercial banks will provide financing to franchises as well. In order to qualify for financing, lenders will need proof that your credit rating is satisfactory. This will require a complete loan package, which includes a personal financial statement, three years of personal tax return copies, and a verification of your down payment source.
Franchisees come in all shapes and sizes and come from all types of backgrounds. However, they all share common traits such as dedication, business savvy, resilience, and ingenuity. In order to become a restaurant franchisee, an individual needs to be a great leader and have the skills and know-how to take the reins. They know that they have a proven system behind them, but they’ll also need to apple some of their own ingenuity and creativity to help solve everyday problems and be able to look at the bigger picture. But remember, these are just few of the many traits a franchisee must possess to be successful. For more information, visit our website.