Why Are Fast Food Franchises So Popular?

Why are fast food franchises so popular with aspiring business owners? In short, a food franchise is a proven and well-supported businesses model that is more likely than average to succeed.

Well Known Names and Built-in Marketing

Fast food companies’ names and product lines are well known. While higher end food businesses need to worry about distinguishing themselves and finding their customer base, a fast food franchise has a built-in customer base.

The corporate franchisers market the brands and the predictability of the product is part of its appeal. When someone sees a Subway or a MacDonald’s, they know what will be available there, and they trust the quality and consistency of the food.

Everyone has their favorite fast foods. Some brands draw on nostalgia, others draw with the ‘fun’ factor, being kid friendly, and almost all of them draw on being easy on the budget.

Recession Resistance

Because fast food is convenient and relatively low cost, fast food franchises often continue to do well during recessions. People who are forced to take on extra jobs or extra hours in order to make ends meet may need to grab meals on the go, both for themselves and for their families.

Families who eat out once in a while may choose fast food rather than a conventional restaurant when they are strapped for cash. It’s always the affordable treats that continue to be sold in volume when customers are on strict budgets. Fast food is an affordable treat.

Extensive Training and Established Procedures

In order to maintain customer trust by dependably delivering the product consistency that they’re known for, fast food franchisers often have strict requirements for their franchisees. Extensive training is offered to both franchisees and their staff and there are established rules and procedures for every aspect of the business.

While that may seem onerous to some, it actually makes a fast food business easier to run. The procedures and training are already planned. There’s no need to reinvent the wheel.

Setting up a fast food franchise is a predictable step-by-step process where many of the small decisions have already been made and many of the large decisions, such as where to locate the franchise, can be settled with help from the parent company.

In setting up a fast food franchise, business owners have a clear to-do list. All they need to do is complete the tasks. If they run into a roadblock, support and advice are available.

Ease of financing

Because fast food franchisers offer a proven business model and support their franchisees, an established fast food franchise will attract investment much more easily than a new venture with an unproven business plan.

If the advantages of a fast food franchise can be summed up in one word, it is this: predictability. Banks love predictability. It’s not as easy to obtain financing for a new business as it once was.

Lenders are looking for low-risk ventures, and fast food franchises are relatively low risk.

Lenders, customers and potential business owners all trust a famous name and a well-established business model. Fast food franchises offer consistent quality achieved through well-tested means.

It is no wonder that so many aspiring business people are choosing to open a fast food franchise.

This article was contributed by FranchiseSales.com, the market-leading directory of franchise opportunities from Dynamis, the online media group also behind BusinessesForSale.com and PropertySales.com

For any questions regarding this article contact our Client Care Manager Sonia Chhabra at  (888) 926-9193 or email cs@justelementary.com for additional assistance with analyzing franchise businesses to determine which ones fit your investment criteria and needs.