Would you like to open your own restaurant? Customers of franchised restaurants expect the food to taste the same at any location. They also expect the interior, menu and ambiance to be consistent from site to site. An operations manual with recipes, portion size, pricing, and acceptable furnishings and fixtures is provided to the franchisee. In most cases, you’ll need space at your headquarters to provide training for several weeks.
It is a good practice to check with the hotel’s other franchises regarding the support system offered by the hotel. The hotel’s management must be able to provide documented proof about the experienced way the existing franchises are being handled. If the hotel already has franchises, it would be good practice to ensure a level of expertise on part of the management based on the way these franchises are being run. This will ensure the applicant gets to know the hotel’s policies and quality standards being maintained in the franchises.
Equipment breakdown insurance- Equipment failure can lead to crippling your business or bringing it to a short-term standstill, especially if you do not have the equipment breakdown insurance. For example, if the microwave in your motel stops working or if the heater stops working, it will affect customer experience and lead to cancellation of bookings. provide funds for repairing faulty equipment and for making up the lost income due to the failure. Equipment breakdown insurance ensures that you have the necessarily funds to make the repairs or replace the equipment.
Restaurant franchise ownership can be a smart choice for driven individuals who want to purchase a turnkey business. Franchises don’t run themselves, but with your personal dedication and industry tools such as franchise management software , you can run your food franchise like a well-oiled machine.
For retail chains, financial problems with shipment and manufacturing (even after executing an agreement with the franchisee) have to be considered. The sizable initial costs plus the time lag (about half a year to more than one year for preparations) before the franchisor can recoup the money from the franchisee, may result in cash flow problems for the franchisor. This is especially so for smaller retail chains with a yearly turnover of say US$1m to US$5m as they may not have the financial resources to provide or compensate for any delays.