Opening a fast-food franchise Essay Example for Free

Opening a fast- intellectual nourishment immunity EssayOpening a fast-food license can be a very rewarding venture. Consumers eat as much as US$110 billion worth of fast-food in the United States in year 2000 alone, a dramatic increase from only US$6 billion in 1970. check to The National Restaurant Association, this trend continues to be observed as fast-food sales grow at a rate of 5% per annum to an estimated US$163 billion by the end of 2007 (Maxwell, 2003). This gives us the idea that a fast-food franchise is potentially a very profitable business option. However despite this implication, an average of three issue of twenty-five franchises of major fast-food corporations close down at the end of every fiscal year (Maxwell, 2003), which tells us that merely opening a fast-food franchise does not guarantee success in the business. Therefore in that location is a need to follow certain guidelines in order to increases the chances of succeeding in the fast-food business ven ture. The for the first time step is prefering an appropriate fast-food site. This could be a piece of property that you own or intend to allow.It is of pristine importance that you first evaluate whether or not your intended site is fit for a fast-food franchise. whatsoever franchisors want you to follow specific guidelines in selecting a site while others may even require you to merely choose from a list of sites that they offer. Sound evaluation of a prospective site involves a scrutiny of 1. ) sanitation, 2. ) consumer base, and 3. ) competition (Hogan, 1997). A fast-food site must be in an atomic number 18a that is relatively sanitized.You should neer choose a site that is next to a junkyard or other similar structures. The best sites are located in places that find obvious potential consumer bases such as near a inculcate where the schools students and faculty members might comprise a commanding consumer base. Unfortunately, there are unremarkably other fast-food o utlets already installed in the best of fast-food site areas, which makes it important for you to first analyze the level of competition in the immediate area and whether you would be able to stand up to it.The second step is to select an appropriate franchisor (Hogan, 1997). The fast-food that you will choose should be in demand to your prospective consumer base. You can conduct a survey on the food preferences of people in your prospective site in order to have a better idea of which franchisor to select. It is also important to select a franchisor that has a well popularized mark and a proven formula for good business. This is the main advantage to buying a franchise as opposed to starting a new fast food joint from scratch.Aspects of a fast-food franchisor such as advertising, good will, and favorable sanitation reports all trickle down to individual franchises. Furthermore, a well last franchise should be able to assist a franchisee on everything, from site selection and even lease negotiation to provide training, ingredients advisory and operations monitoring. The last step is to make the proper arrangements with your selected franchisor (Hogan, 1997). This involves settling a number of fees including those for initial franchise, royalties, and other miscellaneous fees for advertising and promotions.This step also includes hiring and training required staff and setting up the selected site. With all those taken cared of, what remains to be done is to procure stock for the food to be served and then you are good to go. Franchising is a potentially profitable business option. Anyone who is thinking slightly making such a venture should first look for an appropriate site and select a reliable franchisor before going into the detail of making final arrangements of setting up a franchise.