Franchising: The Key to Easy Branding

Cold Stone Creamery Logo

A major challenge that many entrepreneurs face is branding. It’s extremely difficult for start-up businesses to establish a solid brand name that becomes popular regionally, nationally and perhaps internationally. Yet some of today’s most successful chain restaurants and stores had humble beginnings in small towns. Sometimes, there is simply no single recipe for making a small business successful on a much larger scale.

Franchising is a popular option to explore for entrepreneurs who are eager to be a part of well-established companies. The food and beverage industry offers a tremendous amount of opportunities when it comes to opening and managing franchise locations. The name of a famous company easily attracts customers to a brand new location. The investor of a franchise branch must follow all policies and regulations that are set up by parent companies. There is little freedom in creating abstract and unique management policies for operating a franchise. Investors and managers must work hard to sustain the reputation of the business name that has already been well-established after years in existence.

Investing in a franchise requires a significant amount of starting capital. Some restaurants and other food vendors might charge investors well above $100,000 to open up a new location. Additionally, royalty fees must be negotiated before opening up for business. A percentage of each sale must be ultimately given to the parent company.

Franchising allows investors to add some local character to a new location. For example, interior decor might feature posters and artwork supporting local sports teams, famous celebrities and politicians. At the same time, the color schemes of the original brand must not be altered. As customers see the name of a particular restaurant, they expect a certain type of experience when going inside and ordering from the menu. A business opportunity like a Cold Stone franchise and other ventures are examples of investments in the food and beverage industry.

When opening up a franchise venue, the investor should have all of the necessary insurance policies in order to prevent hefty lawsuits. The parent company also bears responsibility for any defective products that have been sold to customers. However, slip and falls or other personal injury lawsuits are often directed fully against a particular franchise location rather than an entire parent company. It’s also important for franchise investors to have solid legal representation in case any disputes erupt with the parent enterprise.

Leave a Comment

Your email address will not be published. Required fields are marked *