Many aspiring food truck owners have absolutely no business background. There’s no shame in that. Therefore, buying into an existing food truck franchise is always a viable option that presents its share of pros and cons. When you buy into a food truck franchise, some great benefits are that you’ve already got your menu items, pricing, as well as instant recognition and built-in marketing. On the downside, buying into a food truck franchise isn’t as easy as it sounds. In the following article, One Fat Frog Restaurant Equipment looks at both the pros and cons of buying into a food truck franchise, as well as some helpful tips.
A lot of people break into the food truck industry because they want to be their own boss and be totally independent. Buying into a franchise, however, means that you’ll have to work as part of a team and follow the franchise’s standards. You will not be your own boss. If you’re okay with this, then a franchise is right for you.
Here’s a look at some of the advantages of running a food truck that’s part of a franchise:
• it’s an instant business. This means that there are fewer upfront decisions and you won’t have to sweat over the truck’s name, design, or the menu.
• franchises normally come with the support of the corporate office. This means that you’re given a direct line to corporate staff who can help you with any questions or concerns about the business. This is especially helpful for those who have little or no business background.
• instant name recognition! This is a massive benefit of being a part of a food truck franchise. While food truck start-ups may have to run some kind of advertising campaign and pound the streets to build up recognition, you will not have to worry about this.
Ahhh but be warned, there are several disadvantages to buying into a food truck franchise:
• a hefty price tag. Buying a franchise is typically an expensive endeavor. Of course, the whole idea is that you’ll make your money back faster with a franchise than with an independent food truck.
• being a part of a franchise means you have little to no say in the truck’s concept. This means the menu, the name, and the truck’s design. Any ideas you have for the truck need to be approved by the franchisor.
• detailed rules you must abide by. In order to maintain the franchise’s standards and client expectations, franchises set in stone several rules and regulations to be followed. These rules normally include uniforms, brand of condiments, and appearance standards. Failure to stick with these rules and regulations can result in losing the rights to the franchise.
• those darned royalties. Besides paying the rights for the franchise, you’re going to be expected to pay royalties in some cases. This is, of course, how franchisors make money on your food truck business.
If you decide to go forth with a food truck franchise, you’re going to be expected to sign a lengthy contract with the franchisor. It’s advised that you go over the contract with an attorney before signing on that dotted line.
One Fat Frog • 2416 Sand Lake Road • Orlando, FL 32809 • 407-480-3409