Woman dipping the fries in ketchupSome of the most common franchises in the world are in the food and retail industries. These include sandwich shops, burger joints, noodle houses and convenience stores. These are turnkey solutions, where a franchisee spends on building, supplies and equipment.

An entrepreneur starting a sandwich shop business is better off as a franchisee. In return, the franchiser would provide the training, knowledge and brand promotions.

Brand Name and Expectations

A restaurant franchise is a turnkey operation, where the only thing needed to do is to set up the physical restaurant. All the operational details like management, training, KPIs and procedures are in manuals. In most instances, all the signage, designs, and advertising materials are also included. The franchiser provides the supplies, which guarantees uniform quality across the chain.

The centralised purchasing and processing system helps the franchisee with lower cost materials. Sales are also helped along by name recall for large famous brands. People would have expectations about the taste and quality consistent with the brand’s reputation.

Management and Financials

The franchiser helps a lot in making sure that its franchisee makes a good financial return. The franchising agreement usually includes provisions ensuring compliance with practices and procedures. There’s strict implementation of these best practices. This helps the franchisee to overcome steep learning curves.

This method also helps avoid errors in management and procedures. This includes the choice of location, as well as the floor plan and seating. Set procedures result in standard KPIs followed by all franchisees. Investors want a good return on their investment (ROI). A high ROI is achieved with strict compliance with company standards.

Food franchises have a low failure rate due to their adherence to standard company procedures and processes. Compliance with company standards helps ensure success and a good ROI, making the franchise an even better looking investment opportunity.