Tom’s Franchise Information Blog

Does your crystal ball show a food franchise in your future? More and more entrepreneurs are looking for a food franchise for under $200,000 to find high profitability at a reasonable investment.

Low cost food franchises have traditionally done well in economic hard times. McDonald’s experienced a great growth spurt during the economic recession of the 1070′s. A key to their growth was a marked increase in families shifting to two incomes. Women, who stayed at home cooking meals in the 60′s, were in the workplace looking for an inexpensive meal in the 70′s. In today’s market many workers are underemployed and taking on second jobs.

Several high end restaurants have suffered in the tough economy, but fast food and quick casual models have done well.

Here are some things to avoid in selecting a food franchise.

1 – Avoid over built franchises. If you can already name several locations in your part of town, it is probably overbuilt.

2 – Avoid overpriced franchises. Always ask yourself, “What am I paying for?” With a franchise you are paying for a proven system and experience, but at the end of the day you want to make a profit. Too large an investment going in, can jeopardize the bottom line.

3 – Avoid old news. Restaurant patrons like to try new places. Opening a new name in a good location is going to bring in the curious traffic. Whether they come back is up to you.

Here are some things to look for in selecting a food franchise.

1 – Great food. There is no substitute for a quality product.

2 – Unique presentation. Winning restaurant concepts have a unique presentation that generates interest and keeps customers coming back.

3 – Reasonable investment. Some mature franchises can demand a high premium. Set clear investment limits and realistic profit goals.

Check out the link below for a list of some great food franchises.

http://www.wfafranchiseconsultants.com/Food_Franchises.htm

Ed Wills is a franchise and small business startup consultant with WFA Franchise Consultants. He specializes in helping people identify business opportunities that will help them reach their personal and financial goals. He writes, speaks and coaches on a variety of business and success topics. You can learn more about his services or request a free consultation at http://www.WFAFranchiseConsultants.com.