With industry giants like McDonalds and Burger King leading the way, consumers and business owners have traditionally seen fast food franchises as a reliable source for small business profit.

One of your biggest decisions as a potential fast food franchisee is whether to go with a well-known franchise or with a less-known, but equally capable one. Each has their own advantages and disadvantages.

The main advantage of a big name franchise is just that – a big name. Consumers are sometimes more comfortable buying food from a recognized franchise because they know what to expect in terms of menu selection and quality standards. However, these franchises come with more expensive price tags and more restrictions than their less familiar counterparts.

Smaller name franchises can be just as profitable as the industry giants, especially if they are competing in a market with limited dining options. In addition to smaller investment requirements, franchisees can sometimes benefit from getting in on the ground floor of a growing company. Franchisor support and services vary, especially among the lesser-known companies. Contact potential franchisors to make sure you’ll get all the support you need if you make the decision to become a franchisee.

Points to Consider

• Big name fast food franchises tend to be more selective than the smaller name ones because they have a larger pool of candidates to choose from. In addition to the financial investment required by large name franchises, you will be expected to have industry experience. They may help you gain that experience, but ultimately you’re going to have to put some time in before they will allow you to become a franchise owner.
• Depending on the market, competition can be brutal in the fast food business. You’ll need a thick skin and above average initiative to succeed. If you don’t possess those qualities, then you might want to consider a different franchise industry.

Franchising Opportunities

• McDonalds Franchises. McDonald’s is the undisputed leader in fast food franchising. Much of their success is based on the long-standing integration of franchising into their overall business plan. They currently have well over 30,000 franchises in locations around the world.
• Burger King Franchises. Like McDonalds, Burger King has made its mark in fast food franchising. With a wide choice of menu options, Burger King currently has approximately 12,000 location in U.S. and international markets.
• Taco Bell Franchises. Another big name franchisor, Taco Bell offers an alternative to the burger franchises. Although they are primarily focused in the U.S., the company has more than 6,000 locations in the U.S. and abroad.
• Del Taco Franchises. Like Taco Bell, Del Taco offers a Mexican food alternative to burgers and pizza. However, they are smaller and less expensive than Taco Bell with slightly less than 500 U.S. franchises in 2005.
• Orange Julius Franchises. A shopping mall favorite, Orange Julius continues to please customers with its smooth and creamy juice drinks. Also primarily based in the U.S., they currently report more than 250 franchise locations.

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