Food Franchise

Posts Tagged ‘Franchise Fee’

Pizza Hut is one of the most famous fast food franchises in the world and this success is reflected in the cost and content of its franchise opportunity. Like Long John Silver’s and KFC, Pizza Hut is one of the franchise chains that has been taken over by Yums and therefore franchisees are able to take advantage of the benefits that attached to a large multi-national corporation.

As the name suggest Pizza Hut specialises in the sale of pizza, either for consumption in their restaurants or as a take away or home delivery. The company states that it is part of the largest restaurant chain in the world and that Pizza Hut itself has a global presence of in excess of 20,000 franchisees.

As part of the Yum group of franchise chains, the costs and financial expectations required of a potential Pizza Hut franchisee is similar to the other in the group, including those mentioned above. In this respect, to include the cost of the design, renovation and purchase of the outlet premises, there is a requirement for a total investment of up to $1 million depending upon the size and location of the outlet.

The franchisee is expected to have a net worth of around $1.4 million, of which around $360,000 is expected to be liquid. They will be required to pay a franchise fee of around $25,000, although this figure is also flexible and will rise with larger units. Royalty fees are 5% and in addition to this each franchisee is required to contribute towards the corporation’s $600 million annual promotional and advertising campaign.

Full training is provided for franchisees and their employees and there is the opportunity to learn leadership and business skills at Yum’s own university, which has standards similar to those of a main line university.

The Pizza Hut has its own unique brand and this is coordinated throughout the store design, stationery and promotional material. Menus and promotional offers are controlled by the central corporation, so the amount of flexibility available to the franchisee in terms of the products they offer is limited.

A full and comprehensive help and support service is available to franchisees at all times following their franchise purchase and they can also expect to receive regular visit from the regional teams, which are designed to maintain quality and control, in addition to ensuring that the franchisee is making the correct returns from which royalty fees are calculated.

If you ever saw yourself as a Pizza outlet owner, Pizza Hut, with the backing of a multi-national organisation, is one of the better franchises in this sector.

Franchising for the over 50’s. Which franchise is right for you? Financial situations play a major role in choosing which franchise opportunity to undertake. The best cost-return for your money, on a franchise business, is in the pizza industry. Boston Pizza, Pizza Hut, Pizza Pizza, or 2 for 1 Pizza, it all depends upon how much money you have available, in cash and loans, to invest in a franchise business opportunity. And availability, locations, permits and demographics all play a role in selecting the right franchise opportunity for you. There are start-up costs for any franchise, be it a Tim Horton’s Donut store, a McDonald’s or a Burger King. Staff needs to be hired and trained. Product needs to be in place, and a direct and constant, dependable supply chain arranged. If you are looking for something to consume almost all of your waking hours, then the franchise industry is tailor-made for you. Everything can be included, from uniforms to kitchen equipment, from the foodstuffs and drinks to napkins and condiments, cash registers and even furniture sometimes are supplied. Whether you will be selling Pepsi or Coke will most likely be a pre-determined factor, not under your control, as these things are decided at the corporate level. Advertisements and corporate deals are made, promises and promotions. But the profit is there, just waiting for you to gobble it all up. All you need is the deposit, the franchise fee, land at a prime location, all city permits, licenses and by-laws paid and met, the blessings and approvals of the franchise’s parent company, and the desire.

Not happy with the idea of retirement, and want to make your money work for you? If you have saved up for the opportunity of going into business for yourself, and are financially prepared, then buying into franchising is a prudent and feasible investment decision. Determining the proper franchise for your intended market is one factor that could make or break your business venture. Placing an expensive franchise in the wrong geographic location will ultimately do you in, as you have to meet sales levels to maintain your franchisee status. Refunds are almost never involved when losing your franchise standing. That would be a lot of lost money. Picking a growing young community, near major highway access and big business, with schools and housing within walking distance can be a very tricky undertaking. Buying a pre-existing franchise, from a deceased owner’s estate,