Maedelle Anne J.

Tirado Grade 11-ABM GATES

Start a Business Now…

We do know that food is one of the basic needs of human beings. This provides us
energy to help our body works properly everyday. And because of that keeping our body
nourished has changed due to the demands of the modern world. Most young people eat their
breakfast, lunch and even dinner in a fast food restaurant, because as usual they don’t have
enough time to prepare a home cooked meal. So, as we can observe, the demand of fast food
restaurant is rising up.

Have you ever wonder why you always see Mcdos, Jollibees, Kuya Js, KFCs, and
other fast food restaurant wherever you go? If so, it’s because they were franchised.

Franchising is a form of business in which the owner, or the franchiser gives license
to distribute products, services or methods of business to affiliated dealers, franchisees. In
many cases franchisees are given exclusive access to a particular geographical area.
Basically, it is one of the strategy of businessmen for business expansion.

Let’s look closely to this matter, if you want to start a business, think about
franchising a business like Restaurant Franchise. There’s so many restaurant franchise you
can choose like fast food, fast casual, full service, and many more.

Since, everything in this world, living or not, have pros and cons. Let’s begin to
scrutinize the advantages in starting a restaurant franchise. First things first is the instant
recognition of the brand, one of the advantages of a restaurant franchise is that you get instant
brand recognition. Your customers would be familiar with the brand and there is no need to
gain your customers’ trust from scratch. Second is the financing Process is easier because for
any franchised restaurant with a recognized brand, it is easier to get loans from lenders. Plus
Franchise needs like supplies, equipment, furniture, etc. are usually sourced in bulk by the
Franchisor.

Then you’ll have also a defined training process, comprehensive training programs
are arranged by the Franchisor before letting you start the Franchise. This helps in
understanding the key factors of a successful restaurant franchise and delivering a positive
customer experience. And a Restaurant Franchise will receive a partial or complete turnkey
delivery. It involves a comprehensive package starting from searching for a location, building
design, menu, marketing, etc. Lastly, be in “Business for Yourself, Not By Yourself”,
restaurant franchise is now able to provide an owner with peace of mind knowing that any big
risks have already been sorted out a long time ago by the corporate owner. New restaurant
franchise owners will be in business for themselves, but will have the added tools and
resources from their franchisor to make their restaurant succeed. A good franchisor provides
owners with the following to ensure customer satisfaction during the entire franchise
agreement. (Clark, 2018)

Despite those benefits, franchising also has downside and you should also need to
consider those things. According to FranchiseNow.net (2017), the first downside that you’ll
face is the high initial investment. Almost every Restaurant Franchise requires a significant
investment. The franchisors expect upfront payment to spend for kitchen equipment, attorney,
building maintenance, insurance, annual royalties, and many more. Secondly, Even if you
have a creative mind, there are certain restaurant standards to be followed, which cannot be
overlooked. You own the Restaurant Franchise, not the brand. Important changes and
decisions can only be taken by the brand owners and cannot be independently implemented
by you.

Next is that the expansion is limited due to the franchisor’s territorial restrictions,
your Restaurant Franchisee is likely to be constrained from expanding into other areas.
Finally, deviating and breaking the brand’s standards are strictly no-go. If so, you will
immediately lose the Restaurant Franchisee and the investment made in it. Your Franchisors
can also decide if they are to renew your contract or not. At the end of the contract, they can
also change the terms and conditions, and royalties.

Actually, it depends to you whether to franchise or not but for me, it’s either. Yes! It
is not hard to promote your business especially if it’s famous, you don’t have to worry about
the products, supplies and equipments because it’s already provided, not to mention about the
free seminar that the franchisor give/conduct. Just don’t mind the cons, you only need to
follow the rules of how to run that business and focus to your goals. Almost perfect right?
The only thing is that if you don’t enough money or can’t reach the market price of that
business.

If ever i’ll have my own franchised restaurant someday, I will surely do my best and
everything so that my business wouldn’t lead to bankruptcy. And yeah, before I forget,
reminder to those people, who always buy their meals in a fast food restaurant to minimize
this act because it’s very unhealthy.