Buying power, name recognition, expertise (both in the business and in franchising the business), advertising clout and research and development are some of the benefits prospective franchisees expect when buying a franchise. With the newer systems, these benefits may not materialize for several years, if at all. There is no question that the risks for franchisees in the start up franchises are higher than with the long established franchises.
It Is Generally Recognized That An Owner Will Be More Attentive To The Business A business can more easily expand within a larger geographical area through franchising. Expansion into foreign jurisdictions is often easier, because the franchisee will take responsibility for dealing with local customs, tastes and regulations. The reduced amount of supervision required in a franchise system helps to overcome the problems of distance inherent in conducting business in other provinces or countries. Franchising is sometimes utilized, by a business which has expanded to its limit as a corporate owned network, to exploit markets which would otherwise be neglected.
Well, you have read everything written about franchising, sought the advice of a franchise expert, spoken to your accountant and lawyer, discussed the matter with the bank manager and consulted your brother-in-law (who has eaten in hundreds of franchised restaurants over the years) and you all agree that your own particular business is franchisable. Are you ready to start preparing a franchise program? Absolutely not!
Quick service and family casual restaurants have a broad appeal and are able to expand to multiple locations within a particular market and beyond. An expansion will often take the restaurateur across a border, whether country, state or provincial. The restaurateur will encounter some or all of: differing laws, costs for labour, construction and equipment, market demands, cultures and languages. All of which can exist in an expansion across even a provincial border, i.e. the Ontario/Quebec border.