When looking into franchising, the options, as far as available franchisors, are almost overwhelming.  Any business that you may have dreamed about going into exists, with multiple brands and business models already established and proving profitable.  Having so many available options can make it difficult during the initial “narrowing down” process of selecting a franchisor.  There are so many questions you have to ask yourself along the way, such as “Do I want to start big, or start small and work my way up?”

The Big Start

If you have a lot of capital and want to start big, there are certainly plenty of options available.  Granted, the larger the franchise, the greater the investment and the greater the risk.  This is why big franchise operations like major motel chains mainly appeal to those who have already established themselves within the industry.  These franchises are very expensive, but can also provide the highest return on investment if handled properly.

Large franchises are intended to be able to reach the greatest amount of customers within a region starting from the moment the doors open for the first time.  However, there is very little room for growth within the individual franchise.  What you start with is generally what you continue on with, with only minimal modification.  The potential for profit is certainly there in a big way, but the potential for growth is minimal.

Building Up

When you go into business as a motel franchisee, or a fast-food chain owner then you start big and, more or less, retain your size with only minimal growth in the franchise and in profits.  On the other hand, if you enter into a franchising agreement with one of the many franchisors that offer small business plans with the potential for almost unrestricted growth, then you are only limited by your own initiative.

When you start small, obviously, you don’t see as much profit as the big guys.  However, you’ve also invested less and you have more control of how your business grows.  There are a number of small franchise, such as waste oil management operations, that can be run from home and whose growth is only limited by the ability and drive of the owner.

This degree of flexibility, freedom and unrestricted potential makes small franchise ownership very appealing.  This small scale model of franchising is especially well suited to first time owners who don’t have a lot to invest and to those who want a hands-on owner operated business.  The owner-operated franchises provide a level of control that bigger franchises cannot.

The Perfect Fit

Small franchises are almost all intended to have a broad potential for growth.  By starting small you are often affording yourself the ability to expand far beyond the scope of what you would have been able to do by purchasing a larger, but more static, franchise.  Over time a small business can become something that rivals big franchises for profitability while retaining the relatively small initial investment and risk.  This makes small franchises not only promising for first time owners, but also the safer investment in many cases.

There are few things in life more satisfying than going into business for yourself.  Of course, the financial benefits are what most of us focus on, but there are great personal benefits as well.  Watching your business grow and flourish is a feeling like no other.

We all want our businesses to succeed, but it takes more than simple desire to succeed in business.  This is especially true in the tumultuous first 5 years.  Purchasing a franchise rather than going into business independently offers a greater chance of weathering those first 5 years, but, of course, nothing is ever guaranteed.  A lot depends on being smart about the franchise you select and basing your decision on solid research.

Utilizing Your Skills

Though many franchises are set up so that a new owner has an excellent chance of success even if he or she has never worked within the industry before.  However, your chances of success are markedly greater if you go with something that you do know and have experience with.  Being aware, at least in a rudimentary way, of the intricacies of the business you will be going into prior to entering into a franchising agreement will give you a definite edge.

This is to say, if you have experience in the fast-food industry, than you will probably do better as an fast-food franchise owner than if you went into the motel business.  Your chances are even better if you buy into a franchising organization that you have already worked under.  There is simply no substitutions for real life knowledge and experience.

Check Out Available Training

Whether you have worked in the industry you hope to go into business in already or not, when selecting a franchisor look at what training they offer.  The fundamental benefit of franchise ownership lies in the maxim “in business for yourself, not by yourself”.  A good franchisor will equip their franchisees with every possible tool for success, including intensive training.

If the franchisor you are looking at does not offer a wide degree of franchisee training and support, then they probably aren’t a wise investment.  If they can’t offer a certain level of business training, then they really don’t offer much more than a name over going into independent business.  This is why it is important to thoroughly research your franchisor candidates before making your final selection.

Do What You Love

Probably the single most important thing to consider when thinking about going into business is what you will enjoy doing.  Going into business is major investment and chances are, at least for the first few years, you will be in complete control and very involved in your business.  Many owners retain that level of hands-on involvement over the entire course of their ownership.

Because business ownership is such a major investment of money, time and energy, it is vital that you pick a franchise that you can really see yourself working at and enjoying long-term.  Again, there is a lot of satisfaction to be gotten from seeing your business boom.  Doing what you love insures that you will be able to continue to give the level of hands-on commitment needed to see that happen.

Food service is a very resilient industry, and no matter how bad the economy gets, it is usually one of the few areas that make it through. This usually depends by and large on the abilities of the management to make sound choices, control loss, and be able to make sure that the restaurant is still moving forward, even when many businesses are falling behind. There are a number of strategies that smart restaurant management uses in order to continue moving in a positive and profitable direction, and these things are generally a key ingredient in surviving rough economic times.

Marketing is still a major factor, even when the economy is down. With the boom in internet use, many food service establishments have Myspace pages, Facebook and even use Twitter as a way of continuing to promote sales, specials and deals in a cost effective manner. The trend continues to move upward, which does show businesses that utilize this as being with the times and keeping up with their customers- so that is an added benefit.  Other means of advertising and promotions abound- everything from themes to adding karaoke has been used by restaurants in order to continue promoting, and continue to make sales.

Controlling loss is a way to make it through, even with profits are not surging upward. Staffing is one area where loss can be controlled by paying attention to market trends and making sure that you are scheduling accordingly. You have to be absolutely certain that you have the right number of staff during the busy times- but not over staffing during the slow. Balancing your schedule in this way helps to cut the cost of labor, which is a great way to make sure that loss stays at bay. Paying careful attention to the staff that is working hard and giving their full effort is key, so that in the event you do have to cut some of your crew, you know who will provide the very best customer experience.

Another area, is in employee theft. Everything from theft of tips, to even recognizing patterns of behavior can help- because during a down economy, the sad truth is that theft tends to occur more frequently. Understanding how to appropriately address these situations as they arise is important, yes, but loss prevention measures can not only enable restaurant management to avoid loss, but rarely have to deal with this problem, as well. This problem can impact all aspects, from loss of inventory to fudged time cards, and is something that can cause a great deal of loss.

Preventing loss and making sure that you are still working towards a better bottom line is more important than ever when things seem uncertain. More often than not, food service industry professionals are keenly aware of the trends in their profits and using that information will enable you to be able to better schedule, prevent loss and be able to continue to make it through. Intelligent business owners are the ones that make it through the rough patches and still succeed.

Payroll is a record that restaurant owners keep to record all employee salaries, hourly wages, and deductions for a given pay period. The choices that a restaurant owner has to make are involved, when it comes to payroll. Questions like when employees will be paid and on what schedule, if overtime will be made available, and how it will be paid out, how employees will keep track of their time, and which employees will be salaried and which will be hourly are important. But also, there are other factors to consider such as the sort of paid off time you will, if you decide to provide.

In addition to that, there are certain liabilities that you will need to be accountable for. Making sure that with holdings, medicare and social security are taken care of, as well as accounting for federal and state unemployment tax payable, and state worker’s compensation tax payable. The payroll tax reports that a restaurant owner has to file are a quarterly report, or a Form 941, Federal Unemployment Tax Report, or Form 940,  State Worker’s Compensation and there may be forms for your local taxing authority on a local level, as well.

In addition, a restaurant owner may have to decide the fiscal set up- for instance, asking the question of “Are my staff to be hourly or salaried?” Hourly employees have to receive time and a half for overtime work and are paid hourly, where as salaried employees receive a yearly wage- divided over pay terms, usually monthly and do not receive overtime. Couple this with the choice as to how often employees will be paid- the consideration here is that in order to prepare payroll, it costs money, so, employers generally try to keep paydays to a minimum. Thinking about over time, the consideration is usually if it will ever be available, and if not, how to maintain adequate coverage at all times. Overtime is paid at time and a half and can be very hard on the budget, so most avoid allowing staff to work it.

Common set ups are twice a month, or every other week. Another consideration is full time verses part time employees. There are reasons apart from availability that this is something that has to be thought about- full time employees generally receive benefits, whereas part time do not. An employee is usually considered full time working thirty hours or more during a work week.

These are a few of the considerations with payroll that most restaurant owners and managers face when dealing with payroll. It is often a great deal of paperwork and effort, and can be something that is at some point, passed off to the restaurant owner’s accountant on a tax level. More often than not, the paperwork is dealt with by someone on a managerial level, and the owners do not handle it- however, when it comes to taxes and general payroll set up, this is one area where owners are typically more hands on.

Owning a restaurant is a great deal of work, and there are many responsibilities that come with it. From set up to hiring on proper management staff- there is much work to do. One major responsibility of a restaurant owner is making sure you are well acquainted with state and federal employee laws. Whether that is your state’s minimum wage, over time or tips, there are some basic laws across the board that usually come into play. Understanding and making sure that you are in compliance with these laws will prevent you from having to deal with some major fines in most cases.

Employment of minors always carries some risk, however, it is usually a cost effective way to make sure that you are adequately staffed. The hours and job position that most states allow minors to work are pretty similar, however, they do vary from state to state in some ways. For instance, in Maine, a minor employee can work at fifteen, however, they cannot use or even pick up knives or serve liquor until they are seventeen. It is also usually imperative to adhere to a minimum hours guideline- and understand those may change through out the year in respect to school hours. You have to always ensure a minors age, as well- make sure that you have not only drivers license, social security card, but a birth certificate as well to verify age. Another example of workers that you will have to verify eligibility are alien workers. Immigrants also have restrictions on employment and require more documentation to prove that they are able to work- you verify this through checking a visa or work permit.

Minimum wage usually varies by state, but you as a restaurant owner have probably already checked with your local government to find out what that is- in some states, though, you do have to change the way servers are paid, as they collect tips. As far as tips go, those always belong to the employee themselves. Though in some restaurants there are tip pools where the employees put all of their tips together and divide them equally- this is actually a practice that is to be voluntary and is not enforceable. Employers cannot make their employees use this, and that is something that not many people are actually aware of.

As far as overtime goes- this is any hours worked above the usual forty hour work week. If an employee works those hours- they are to get time and a half. It’s always best to limit overtime because this is one way you will have a great deal of loss through payroll- even if an employee volunteers to work overtime at normal wage- it’s still the law that employers pay the time and a half.

These are just a few of the legal areas that restaurant owners have to be able to be very clear and adhere to given standards in practice. Making sure that you are not only aware of them but keeping practice will help your business to run more smoothly.

Of course there are some routine things that a potential business owner will want to look into, however, potential franchisees should take particular care to make sure that they are contacting other franchisees before they invest in a franchise. Making sure that you have the uniform offering circular with the details you need about the way the franchise is set up- the financial, legal and personal history is also important before you sign a franchise agreement.

Before you sign, it’s reasonable to expect that you have the franchise’s backing- that is use of the name, trademark and also their know how in advertising, marketing, facility design and layout, as well as any fixtures and displays. You also need to be sure that you are going to get the benefit of the training and management assistance, and the ability to do business in an area exclusive to you and protected from other franchisees. There are a number of things that you will want to be sure that you are completely clear on, and these are just a few of them. If there is any aspect that you aren’t comfortable with, never be afraid to ask.

In certain situations, franchisees may be able to negotiate with the franchisor in order to purchase of lease equipment, signs and other different supplies, or obtain building permits and remodel the business buildings and premises. Usually, franchisers have a set way of doing things, and because of this, will often enable the franchisee to utilize their resources, or at least offer guidance in obtaining the needed items for start up and other structural needs from training employees and management to sometimes hiring practices.

While it is true that a contract usually benefits the franchisor more than it will the franchisee, the benefits to the franchisee of entering into such an agreement are numerous. Yes, the franchisee will probably need to meet certain sales quotas and may have to purchase the supplies, equipment and inventory needed- but more often than not the franchisor can help in this case, if it is not already a requirement. Adhering to guidelines set under a franchise agreement will be important and not doing so can result in the franchiser, under their rights, terminating the contract and the franchise if it isn’t going with that agreement, or if it violates other contract obligations.

It is usually best before entering into a franchise agreement that you make sure that you have a good support system- like any business. You will need to enlist the help of not only an attorney with franchising experience, but also, an accountant. There are certain tax issues that are specific to franchising, and things that are better addressed by a professional with quite a bit of experience in dealing with the key elements of franchising as it pertains to tax law. Having an attorney go over your franchising agreement before you sign will ensure that your rights are being protected, and that everything is being done as it should be.

Many people are considering Bio Diesel as an alternative fuel, and for good reason- biodiesel is typically cleaner burning, smells better and also better on the environment. While some savvy restaurant owners have come to the conclusion that it is better to recycle and reuse the oil- either by way of filtering better to eliminate loss through waste, or by giving their waste oil to local bio diesel users to convert- the problem remains the same. You cannot simply dump waste vegetable oil, so disposal is often a concern of restaurant owners.

When not disposed of properly, waste vegetable oil is not good for the environment, ironically. It can cause serious damage to local water supply and also, can be problematic for wildlife. Dumping waste vegetable oil in your own parking lot can also cause damage to your sewer and septic systems, and cause a great deal of repair to have to be made- costly repair.

Dumped vegetable oil actually causes a large number of issues with sewer and septic systems because as vegetable oil cools and settles it congeals, which can clog up pipes and cause corrosion of certain materials.

There are a number of kits available on the market now for do it yourself bio diesel afficianados- and the popularity of alternative fuel is taking the world by storm, particularly in the US. So, now, restaurant owners find themselves with a new alternative to paying fees for disposal or having to deal with local ordinances. However, there is also an issue of some bio diesel users not being careful when removing the waste oil- so how do you bring these two things together to benefit both? Some intelligent business owners have simply started to place ads in the paper for the removal of their waste oil, coming together and giving the grease using populace an easy way to obtain their fuel, but also, a great and cost effective way to dispose of the grease.

The FiltaBio service, offered by Filta Franchisees, takes the old oil away and ensures that all the oil goes to biodiesel.  Others still yet simply take the waste vegetable oil to rendering companies. Usually, in these cases it doesn’t even matter how nasty the oil has gotten, not only do the rendering plants need that extra grime in the vegetable oil- they usually will pay to take it. These plants typically make alternatives to fire starters or animal foods from the vegetable oils, and restaurant owners never have to deal with it again. As you can see, there are many other alternatives to simply dumping waste vegetable oil out there- and all have better outcomes than simply tossing it. So, there are a variety of really great ways to take the waste oil issues you may have, and turn them around- not only either benefiting your bottom line, but benefiting the environment as well. Waste vegetable oil does not have to be a headache- as a matter of fact, with a little bit of negotiation, your “trash” can become someone else’s “treasure”.

The Franchise Disclosure Document is a legal document that you usually will get in the course of looking into a franchise. By law, franchisors must furnish this document to prospective franchisees, and  this generally contains materiel information that will be important to the franchisee in assessing the franchise as a business opportunity. This document is usually packed very full of information, and each piece is a vital part of the overall picture that you need to make a more informed choice. Having this document and being aware of the parts of it is important. Here, we will go into the different parts of the Franchise Disclosure Document and what different changes are in this format for franchisees.

Franchise Disclosure Documents all follow the same format: The franchisor and any predecessors, litigation history, bankruptcies, the franchising fee and any other opening payments, any other fees involved, a statement of the investors initial cost, obligations to the franchisee to purchase from specific sources, obligations to purchase in accordance to standards, financing, obligations of the franchiser itself, designation of territory, trade marks, trade names, logo types, service marks and other commercial symbols, copyrights and patents, obligations of the franchisee to participate in actual operations, restrictions on goods and services,  Renewal, termination, repurchase, modification and assignment of the Franchise Agreement and related information, arrangements with public figures, actual, average, projected or foretasted sales, profits and earnings, information regarding the franchisers’ franchises, financial statements, contracts and lastly, an acknowledgment of receipt.

The FTC rules for franchises changed in 2007- and many people question the differences between the Uniform Franchise Offering Circular, or UFOC and the  FTC Franchise Disclosure Document, or FDD. It is important to bear in mind that the FTC does not require these documents to be filed, but that twenty six states require business opportunity disclosure filings, and thirteen states keep these on file. It’s generally advised that a franchiser give you this document at least fourteen days before you sign a franchise agreement- though the better advice is to be sure you are clear on it well before then.

As of  July 1, 2008 the new format became mandatory. Most people have discovered that franchise closings do go a great deal more smoothly since the change, and it certainly does make delivering the document via electronic means a great deal easier. However, the same rules apply as to this document as did the old- make sure that you have a qualified franchise attorney look it over, and if you have any questions about any part of the document, or anything said in it, always ask for clarification. It is vital that you are absolutely clear on the franchise agreement, and the FDD, more importantly, before you proceed so that you are completely understanding about what you are engaging in.

The kitchen is the most important place in any restaurant. This is where food is prepped, delivered, made, and plated in a presentation that will be most appealing to the customers. Being able to maintain a neat, orderly and above all safe kitchen is paramount to any restaurant manager. Most restaurant kitchens are made up of several stations. From Prep, saute, pizza, salad and more, depending on the size of the restaurant there may be only a couple, or there may be many. When you’re thinking about your kitchen, consider the menu that you offer. If you have many salads on the menu, having an adequately stocked salad station is key, grilled food requires a larger grill to make sure that food gets prepped, prepared and delivered faster. Being able to maintain good space requirements, and understanding the space limits you have will help, also.

How you stock your kitchen will be very important, too. You have to make sure that all of the equipment you have is appropriate and efficient. However, it is usually beneficial to get much of the equipment used- this is a cost effective way to stock your kitchen and serving utensils, dishes, and other small items can really be obtained much more cheaply this way. For larger pieces, such as grills and ovens, you need to be a bit more careful to ensure that they have more life left in them. You may also want to think about leasing your equipment, particularly in respect to things like ice makers, which typically have a very short span of use.

Safety should be in your mind at all times. Always ensure that there is plenty of space for movement around things like the grill, ovens, and fryers. There needs to be enough room for your staff to be able to do their jobs and in such a way that does not compromise safety. Being sure that all areas where hot things are served, prepared or otherwise handled have appropriate safety measures is key, and making sure that your staff is well trained in how to handle certain situations will also be beneficial. As a routine part of your maintenance routine- make sure you have lists available on the way that you want each and every process done. This may be anything from how to clean the grills and ovens, to how to clean, filter and maintain the fryer- but make sure that everyone is very clear on what it is that needs to be done and in what fashion.

Keeping your kitchen safe is a major part of running a good restaurant. Your staff deserve and have the right to a safe and well organized work space that is as free of risk factors for injury as possible. Being aware of the space requirements from the outset and planning accordingly can help you to create a safe workplace before staff even enter the door. These are a few small ways to make sure that you’re not only running an efficient, but safe kitchen.

On the whole, if you asked the staff of ten restaurants what they hated the most about their line of work, the kitchen staffs from each of these restaurants would tell you- the commercial deep fryer is a dreaded machine, lurking there, waiting to be cleaned. From filtering the oil, to actually changing the oil and dealing with the vents- what a mess! Most staff do not relish the idea of waiting for the temperature to drop, dealing with the downtime, the potential burns, grease splatters and often slipper floors after. Training new employees to clean the fryer can be problematic- some employees are too young to even be allowed to touch it, let alone clean it. However, there are some things you can do to train employees to deal with the dreaded deep fryer in a better way.

First you have to get the fryer ready to be cleaned, and this involves letting the oil cool. Beginning with this, you have to realize that the fryer is kept at a constant heat- usually right around 350F, and that takes a long time to cool properly. Turning the fryer off, unplugging it, and allowing the oil to get down to a workable temperature is important. The highest the temperature should be when cleaning is roughly 150F. Once it has reached this temperature or lower, you can then begin the cleaning process.
Once the fryer oil has cooled, then comes draining it of the oil. As you allow the oil to drain from the vat, you will want to take any baskets or utensils used and wash them separately. After all of the oil is removed from the fryer, then you have to scrape it clean. Particle build up is a big problem for fryers- and if the scraping is not done properly, not only will the new oil be compromised and make it so the food does not taste the best that it could, but, it can also cause mechanical problems and safety issues with the fryer itself. Using a metal spatula, scraping down the sides and being sure to get into the corners is usually best.

For every type of fryer, there may be a different way of cleaning- and this is the actual deep cleaning that is so vital to the continued maintenance of the machine. Fill the fryer with water and a soap solution made for cleaning deep fryers, and plug the fryer back in- turn it on and allow the water to come to a boil. Once it has reached a good, rolling boil, then unplug the fryer again, and allow the water to cool, draining the soap solution just as you did with the oil. Rinse with a rinsing agent, and then, rinse it again with water.

Generally, a decent solvent will take care of the outside of the fryer. Sometimes you may find that you have to allow the solvent to sit to make sure that you have removed any caked on grease. Wiping the fryer down, making sure to give it a good once over with dry towels or cloth can help your fryer to not only look better, but smell better also. Once this is all done, you have to make sure that the area around the fryer itself isn’t still greasy. Often, throughout the normal course of a day, the area in front of a fryer gets a thin layer of grease which can cause slip and fall accidents. As this is the last step, the fryer, and the area around it should be ready to run again with the next shift.

The alternative… get a Filta technician in to manage your fryers.