How Much Does It Cost to Own a Popular Snack or Fast-food Franchise?

Food business owners

A snack or fast-food franchise remains a profitable option for aspiring business owners this year, yet with the related benefits come at a hefty price tag.

Those who have been thinking about joining a well-known brand should be prepared to invest at least $116,600. This initial investment will allow you to have your own Subway store. Take note that having capital is only the first step. You should be ready to pay 8% of gross sales, which would serve as royalty fees on top of a $15,000 franchising fee. It makes sense to consider other low-cost alternatives, such as cookie or pretzel franchise opportunities.

Established yet Expensive

If you think that a Subway franchise is already costly, then buying a McDonald’s franchise might make some people question the viability of being a franchisee. It would cost you at least $955,000 in unencumbered assets to own a store. Most people buy an existing store either from an existing franchisee or from McDonald’s since this only entails a 25% down payment instead of 40% if they buy a new store.

Some brands even require prospective franchisees to meet a specific requirement on liquidity and net worth. For instance, hopeful Pinkberry franchisees must first have a net value of $400,000 and $200,000 of cash liquidity.

Low-cost Alternatives

Given the steep price of owning a well-known franchise, first-time business owners should just focus on smaller and affordable brands. Some of these include buying a pretzel store, and running one can be a good choice due to stable demand.

Sales of pretzels in the U.S. reach more than $550 million every year. Most of these are sold in Pennsylvania where the person eats an average of around 12 pounds of pretzels per year, compared to just two pounds for the average American elsewhere. It’s safe to say that the state is the pretzel capital in the country. Whether or not you decide to run a pretzel store, negotiating a franchise agreement will be important.

Negotiating a Deal

Business people discussing

Otherwise known as an adhesion contract, a franchising deal between franchisors and their members allows the former to enter into a binding agreement without making changes. Franchisors often have the upper hand in these contracts, but there are times when they can make some amendments.

These adjustments could stem from legal counsel from either their own or the franchisee. Hence, hiring a competent lawyer is essential to franchisees. Some of the changes that can be enforced in an adhesion deal include the provision of more resources from the franchisor, better marketing, and advertising support, and financial assistance for your business launch. It could also be specific changes to franchising fees or royalty expenses.

When choosing a franchise, keep in mind that paying a huge upfront fee doesn’t always guarantee success. Banking on a brand’s strong market presence would not be enough to sustain your business. You should also be aware that most new companies fail to exist beyond their first year, so choose a brand that you trust.

Redefining Retail: Why Shopping is Better at Boutiques

Studies comparing retail trade sales in 2017 to that of 2018 show that sales for clothing and accessories went up by 4.7%. This shows that online shopping hasn’t completely taken over the retail industry. In fact, small independent businesses are continuously thriving, earning large sums despite having three physical locations, at most.

Boutiques provide the market with different benefits that online shops can’t offer. The physicality and actuality of the goods alone make in-store shopping a greater, more enjoyable experience.

Shopping Experience

Nothing beats the shopping experience of being in-store. This is especially important to consider when weighing the benefits that clothing store franchise opportunities bring.

While it can be beyond convenient to access an online store on your smartphone, being able to actually try the clothes on and examine them makes shopping in-store a worthwhile activity. More often than not, cameras can’t exactly capture the specific colors, dimensions, and even the sheerness of a garment. For example, what appears to be opaque in photos can be see-through in real life. In-store shopping affords you the real deal.

Boutiques let you fit, examine, and take in the feeling of wearing the clothing item that you like. Sizes and other colors can be readily available, letting you choose from different options as they are. This allows customers to get exactly what they want, reducing the chances of returns and refunds.

Fast Fashion

Independently owned boutiques can quickly reproduce looks fresh off the most recent fashion shows, without the hefty price tag. The rapidly changing demands of customers today require boutiques to release items in line with what’s trendy. By selling affordable and fast fashion choices, customers can be on-trend while sticking to their budget.

person with a lor of shopping bags

This constant introduction of clothing items and other products is advantageous to retailers because it encourages fashion enthusiasts to visit your boutique more frequently. Fashion consumers are more attracted to items that are of seasonal or limited availability.

In addition, with inventory, boutiques have the benefit of cost efficiency. Excessive stocks from previous lines can be re-released once that trend comes back in the spotlight.

Brand Loyalty and Trust

An important part of a customer’s shopping experience is customer service. From sizes to alterations, in-store associates provide immediate assistance to shoppers. Today, customers would rather transact with small businesses because of the personal connection they have with the people who run it. Having face-to-face transactions make for real and authentic moments – something customers don’t usually get when shopping online. The owners and employees make a big impact on building trust and influence as they are the face of your brand. This is what makes people trust your brand, so you can be sure that they will keep coming back for more if you provide them with positive in-store service moments.

By giving customers unique shopping experiences and consistently keeping abreast with industry trends, you are sure to build and nurture solid relationships with your market. Leverage the opportunities and benefits of being in retail – this will not only help your small clothing business grow but will also positively impact the retail industry.