08 Sep, 2017

Catering Franchise Opportunity

Catering franchise opportunity Deciding whether to go with a catering franchise or to start your own independent business can be tough. Your decision will depend on the type of person you are, how independent you want to be, how much start-up capital you have and how much business experience you have. In this article we will examine some of the advantages and disadvantages of starting a catering franchise opportunity. Startup Costs With a franchise it is likely that your startup costs will be high as you will have to set up everything according to the franchisors specifications. You may have to purchase equipment and other supplies off the franchiser or lease business premises according to their requirements. As a franchisee you will be obligated to pay fees to the head office. Some of these will be due monthly and some may be due at the time that you open for business depending on your contract. Startup costs for your own independent catering business are likely to be lower. You can keep costs to a minimum by being home based or by buying second hand catering equipment for example. Risk With a catering franchise opportunity you will have to jump straight into a serious business with a large initial investment. On the other hand, an independent business can allow you to ease into it more slowly. If things don't work out well then you won't be out of pocket with your own business to the extent that you would be with a franchise. Proven Systems One of the great advantages of a franchise is that you benefit from the expertise that your franchiser has gained over many years. They have spent years developing a catering business system that has been proven to work well and should be able to be duplicated to work well anywhere. You will gain access to this proven system and most likely receive training in all aspects of managing the business. You will also be part of an advertising and marketing effort that will be organized by the head office of the franchise but paid for out of your fees. Head office support is helpful to some but it often comes with a heavy price tag. If you have already had industry experience and are prepared to take the time to learn more about business management and marketing then taking the independent road is not all that difficult and can save you money. While some newcomers would benefit from the catering franchise opportunity model, most would do better just to save money on franchise fees and invest these funds into their own independent startup instead. before you jump on that catering franchise opportunity that you are considering give some thought to the advantages of starting your own independent business.

Share on