Food franchises are among the oldest and largest franchises in the US and there are several advantages to owning one. First of all, the foundation is already laid for success. The risk of failure is low and, because it is an already established business, it will be fairly easy to garner financing. Of course, there are also a few challenges that come with starting a food franchise. As with any new business ventures, you have to overcome the learning curve. Understanding franchise terminology will make things easier.
Franchise agreementA franchise agreement specifies the expectations and requirements of the franchisor and outlines their commitment to the franchisee. It usually includes information about location requirements, territorial rights, training and support, fees and other general information pertaining to the transaction. Restaurants and other food facilities can outline a franchise agreement that permits others the use of their name, concept, advertising and expertise for a fee.
Menu engineeringMenu engineering helps determine overall business profitability and food costs by examining the sales history for each item on the menu.
Quick service restaurantA quick service restaurant, often referred to as a fast food restaurant, is characterized by its fast food menu as well as its minimal table service.
Food Establishment InspectionsFood facilities must undergo and pass regular inspections in order to continue doing business. The inspection is conducted by a health inspector and consists of an evaluation of food workers' practices, including the method in which foods are received and stored as well as how food items are processed and cooked. In order to pass an inspection, a restaurant must receive a score of 70 or higher.
U. S. Department of Health and Human Services.