Benefits & Drawbacks to Purchasing a Fast Food Franchise

A Look at Three Top Restaurant Franchises

Kentucky Fried Chicken. CiCi's Pizza. Taco Bell. What do these three fast food restaurants have in common? They all offer franchises to people who are interested in opening a new restaurant. They each serve different types of foods and the franchise requirements are slightly dissimilar, but the experiences of three franchisees are surprisingly alike.

First, all three franchises are extremely popular in Texas and other parts of the country. You can find them on every major street--sometimes more than one--and they all have a built-in clientèle who already recognize the names.

Opening a franchise restaurant, however, isn't as simple as choosing a well-known brand that is sure to attract customers. In fact, many franchises fail within the first five years due to poor management and poor choices. When you decide to purchase a fast food franchise, it's important to consider all of the possibilities and make informed decisions.

"The investment is the most difficult thing," says Kayla Evans, the owner of a CiCi's Pizza franchise in Houston, Texas. "The bigger restaurants require you to have at least $1 million in liquidity and a total net worth of more than $100 million." This isn't true for smaller franchises, which can sometimes be purchased for as little as $5,000, but the profit margin isn't nearly as high.

There is an application process that must be observed before you purchase a fast food franchise, which usually includes a close examination of your financial and credit history, as well as your employment background. Professionals who have worked in a customer service capacity, or a supervisory position in customer service, are often best-suited for restaurant franchises. Not only will you own the restaurant, but you will be responsible for its success or failure.