Tuesday August 4, 2020
Sep-23-2018 01:58TweetFollow @OregonNews
IN-N-OUT BURGER Franchise Coming to SalemSalem-News.com Business
Here’s how to start your own franchise!
(SALEM, Ore.) - Last month, two well-known franchises announced that they were scouting locations in Salem: the popular fast-casual burger joint, IN-N-OUT BURGER, and Cold Stone Creamery.
The Cold Stone Creamery offers premium ice cream and hand rolls fresh ingredients like strawberries, peanut butter and cocoa. Opening a Cold Stone Creamery franchise could range anywhere from $50,200 to $467,000.
On the other hand, many Salem residents are excited for a gourmet burgers to come to the area, making it the third IN-N-OUT BURGER location in the entire state of Oregon.
To accommodate for the business, city officials agreed to change the code that restricted businesses from using awnings on their storefronts. Now, the IN-N-OUT BURGER location will be allowed to use their traditional marketing signage and decor, as well as other businesses in the area.
With the news of two high-level franchises arriving in Salem, more wannabe entrepreneurs and businessmen might start considering the perks of opening franchises on their own. And there are plenty of pros and cons of getting yours launched.
Here are a few tips for starting your franchise in Salem:
The Full Franchising Potential
Franchising opportunities are growing. According to The Franchise Business Economic Outlook for 2017, in 2016, the franchise sector generated $450 billion, accounting for 3% of the overall United States private GDP.
At the end of 2017, it was estimated that that number would increase by $36 billion. Furthermore, according to the International Franchise Association, franchise business growth is on track to outpace the overall economy for the 7th year in a row.
Understanding What Franchising Is
Many people understand what a franchise is, yet don’t fully understand what it means to purchase a franchise. After all, there are franchises all around us.
The most popular franchises include McDonald’s, Subway, Dominos, Wendy’s, Dunkin Donuts, and much more. And not all franchises are food-based. Some popular service-based franchises are Planet Fitness, Sport Clips, Window Genie, and The Flying Locksmiths.
So what is franchising, exactly? Fortunately, the core concept is simple enough. The individual who wants to purchase a franchise (referred to as the franchisee) pays for the ability to license out a pre-existing business for a period of time.
In this case, the franchisee understands that they must adhere to all existing branding rules and regulations and have very little creative freedom to change it.
On the positive side, they don’t have to deal with marketing and growing a audience from scratch: many franchises come pre-built with customer loyalty, thanks to brand recognition.
Think About What You Want
Every franchise is different, and requires a different level of work. Rather than focus on franchises that are known for generating a decent return, you should pay attention to franchises that you’ll actually enjoy.
For example, do you enjoy being in the kitchen, or would you prefer a franchise that was more home-based? Here are some franchise resource sites you can turn to:
Assess Your Budget
One of the most important questions you should ask yourself is how much money and time you can invest in a franchise. Some franchises cost as little as $10,000 to start, while others are upwards of $1 million. Consider how much capital you have, and how many hours per week you’re willing to invest.
While you’re in the process of searching for the right franchise to invest in, turn to the right resources. For starters, use a net worth calculator to determine exactly how much you can afford to invest.
It’s recommended that you don’t invest any more than 15% of your total net worth into a business. For example, if your net worth is $500,000, the largest investment you should make is $75,000.
There are also some one-time startup franchise costs you should consider, as many wannabe franchisees forget that there’s more than just the price of the franchise itself. For example, in addition to the franchise fee, you’ll have to pay for your commercial real estate lease, training expenses, equipment costs, merchandise, insurance, and miscellaneous costs.
Launching a Website
A website is a great way to promote any business and acquire leads, but not all franchises permit franchisees to start their own websites, and this is something you should look into beforehand.
Ideally, you could launch your own site, optimize the website speed, build up your SEO, and start a blog to get more people to your franchise. This way, you’ll also have a more personal hold on your digital marketing efforts.
With your own website, you’re also able to better cater to and target your local audience.
A franchise in San Francisco has a completely different audience than say, a franchise in Topeka, and entrepreneurs should be able to leverage their knowledge of the local market to create a more attractive lead-generating site. Always look into the fine print to see what your options are before going further.
Source: Salem-News.com Special Features Dept.
Articles for September 23, 2018 |