The Roni Deutch Tax Center had another guest blog entry published on Franchise Business Review.com. This new article debunks a haldful of common franchise myths. If you have ever been mislead to believe that Starbucks is the worlds largest coffee franchise, or thatall chain restaurants are franchises, then you will want to check out this informative new guest blog entry.
All Chain Restaurants are Franchises
Whenever people see a chain restaurant, from Outback to Olive Garden, they always assume it is a franchised unit. However, there are two business models that these chains commonly use. The first involves selling franchises, and the other involves hiring individual store managers to run corporate owned locations. You might be surprised to learn that the following chains do not franchise: Cheesecake Factory, Lone Star Steakhouse, O Charleys, and Bob Evans.
Buying a Franchise Means Guaranteed Success
Although your odds of success are statistically higher with a franchised business, there are no guarantees. Even with a proven business concept, no business venture is without risks. Hundreds of franchised businesses do close every month, however studies show that the most common reason a franchise fails is because they do not follow the system.
It’s Wasteful to Invest in a Franchise, Just Open your own Business
All franchises have an initial fee that must be paid to open a location, and some people may view this as a waste of money. However, studies show that nearly 95% of franchised businesses remain open for at least 5 years, and 94% of franchise business owners consider themselves successful. The money you give the franchisor lets you in on a proven business model that will make your business much more likely to succeed.
Starbucks is the Worlds Largest Coffee Franchise
As we mentioned earlier, there are two business models used by large chains, and although many people assume Starbucks franchises their stores, they actually do not. The only Starbucks locations that are not corporate owned are those inside hotels and grocery stores.