5 Advantages of Franchising When You Want to Own a Restaurant

08 - 08 - 2023
Daniel Chin

Franchising is a way for an investor to step into a brand’s established momentum. While franchisees enjoy the rewards and freedoms that go along with being a business owner and entrepreneur, they don’t shoulder the burden of establishing a new business model. They instead get to nurture an existing model according to the specifics of their local market. Here’s a look at the advantages of franchising.

What Are Some of the Advantages of Franchising?

Franchisees all have one thing in common. They get personal fulfillment from growing and nourishing projects. While one of the advantages of franchising is that it’s so professionally and personally fulfilling, there are many practical benefits that make franchising one of the most successful business models. Here are the top five advantages of becoming a franchisee.

1. No Need to Step Into the Unknown

While every business or career endeavor comes with risks, many people consider franchising the safe and sheltered version of starting a new business. A franchise business generally has a lower failure rate compared to independent businesses. Some statistics suggest that the success rate for franchises may be close to 95%. Meanwhile, only about half of all small businesses make it to five years. The reason why franchises are considered such “safe bets” in the business world is that you’re offering products with a demand level that’s already been proven and established by existing locations.

2. The Power of Scale

Franchisees benefit from the “buying power” of being part of a large enterprise. Generally, franchise brands negotiate sourcing and distribution deals with the vendors that supply ingredients and materials on behalf of all franchise locations under the brand umbrella. Franchises typically purchase goods in bulk at a discount. That means that each franchise gets to reduce operational costs. In contrast, a small business that isn’t linked to a franchise will pay more for ingredients and supplies because it’s making smaller orders. This lower cost of operation is one of the main advantages of franchising for financial feasibility compared to being a solo business owner.

3. Established Brand Recognition

For any business, breaking through to reach the consumer’s subconscious is one of the biggest challenges. Brands spend huge sums of money just to establish brand recognition through paid advertisements. One of the major advantages of franchising is that an existing customer base will already be familiar with your restaurant before the doors even open! Exposure from commercials, word of mouth, or visits to other franchise locations all provide franchisees with a built-in customer base.

4. Ongoing Business Support From Experts

Starting your own business feels like stepping into the wilderness. There’s so much the average person doesn’t know about successfully opening and operating a business. Most small business owners are forced to learn by trial and failure.

One of the advantages of franchising is that you’re being guided by a team that’s as invested in your success as you are! Franchisees receive brand training that allows them to follow a proven model. First, most franchises offer real estate support for selecting the right location. That means helping to set a franchisee up for success by ensuring that they have the right location, size, and setup needed to get the foot traffic needed for profitability. Everything from recipes to training manuals for new employees will be provided. Additionally, franchises usually provide marketing tools, technology tools, financial guidance, and peer support as part of their ongoing support for franchisees.

Of course, many investors are drawn to the franchising model because they are getting all of that support without losing the independence that makes them want to be entrepreneurs in the first place! While becoming a franchisee doesn’t require the all-in leap of faith that’s required when you open your own small business without any support, franchisees enjoy a level of independence that’s essentially equivalent to any business owner. You are very much your own boss. You’ll create schedules, hire employees that display the drive and worth ethic you find important, work based on your preferred schedule, and have control over your career.

5. Strong Return on Investment

One of the bigger advantages of franchising versus opening a small business is that franchisees typically see a higher return on investment compared to independent business owners. According to data shared by the U.S. Census Bureau, franchises bring in significantly higher revenue compared to small businesses. While the average sales total per franchise establishment is $3.5 million, the average sales total per non-franchise establishment is $2.3 million.

Are There Any Disadvantages to Franchising?

It’s important to weigh the advantages and disadvantages of franchising if this is an option you’re exploring seriously. A common misconception is that you can “do whatever you want” after paying your initial franchise fee. One thing to remember about franchising is that you’re entering an agreement that compels you to adhere to brand guidelines. While one of the most appealing advantages of franchising is that you’re your own boss, you don’t have complete creative or operational control over your franchise location. As part of your franchise agreement, you may need to follow rules about your business location, payout model, hours of operation, menu pricing, and products sold. While you will have the opportunity to promote your store, most franchisees also need to follow specific marketing guidelines.

While not technically a disadvantage, the initial investment cost of becoming a franchisee is something to consider. You will need to cover franchising fees and associated costs. Of course, this isn’t much different from the financial investment required when new business owners start from scratch on their own. In fact, the capital investment for stepping into a franchise is typically lower compared to the cost needed to start a small business solo. What’s more, franchisees are given financial and practical guidance during the entire process to ensure that they are following a proven model instead of simply making guesses with how to use their capital.

Choosing the Right Franchise Opportunity

There’s something important to know when investigating franchise opportunities when you’re ready to tap into the advantages of franchising. The fast-casual restaurant sector is currently growing three times faster compared to the rest of the restaurant industry. In fact, this sector is now valued at $47 billion. There’s one more nugget of wisdom to add to your decision-making process. Technomic’s Ethnic Food & Beverage Consumer Trend Report found that today’s customers have a real hunger for ethnic food. In fact, 32% of consumers are willing to pay more if they can get authentic ethnic fare.

With this in mind, you should have Juici Patties on your radar. Juici Patties is a successful brand that is the first to offer authentic Jamaican food in a fast-casual franchise setting! In addition to offering all of the advantages of franchising listed above, Juici Patties offers franchisees multiple restaurant packages to suit their skills, budget, and local market. Juici Patties also has some of the lowest franchise fees in the industry!

Are you ready to enjoy freedom, growth, brand support, and all of the other advantages of franchising? Contact the Juici Patties franchise network today to explore more!

Meet the Founder and CEO of Juici Patties Franchise in the United States, Daniel Chin. As the son of Jukie Chin, he inherited a legacy of mouthwatering patties. Recognizing the brand’s potential, Daniel joined the business in 2013 and is now the driving force behind Juici Patties’ success in the U.S. With a strong commitment to quality and exceptional customer care, Daniel aims to expand our presence while staying true to our core values.

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