How do fast food franchises work?

With the many successful fast food franchises out there, such as McDonald’s, KFC, Burger King, etc it is understandable why the trend of buying fast food franchises is ever expanding in the UK, and for a good reason too. In this article, we will share how fast food franchises work and why fast food franchises have become such popular investment opportunities among first-time business owners and existing entrepreneurs alike.


How a fast food franchise works:

When you purchase a fast food franchise as a new franchisee, you will receive training and support from your franchisor and the basic setup and renovation to open your fast food franchise business. As a new franchisee, you will also be expected to sign a franchise agreement which will let you know what you can expect from your franchisor as a new franchisee and what the franchisor will expect from you as the new franchisee. It also covers a few other important factors, such as your exit plan, when you can renew your contract, and other important factors you need to consider as a new franchisee. This agreement is vital as it allows full transparency between the franchisor and franchisee, helping both parties feel more comfortable before the franchise location is sold.


If you need clarification about anything highlighted in your franchise agreement, make sure to ask the franchisor or seek legal advice before signing the dotted line to ensure you make an informed decision before investing in a fast food franchise. If you would like to learn more about how franchise agreements work, you should read our previous article explaining how franchise agreements work.


You will also be expected to pay many other fees when you open your own fast food franchise, such as royalty fees, marketing fees, and franchise resale fees. If you want to learn about all the expenses that come with buying a franchise, we recommend you read our article covering all the costs that come with opening a franchise.


Why fast food franchises are so popular

Now you understand the basics of how a fast food franchise works. We will now list the factors as to why fast food franchises are becoming such a popular investment among aspiring business owners.


  • Large potential customer base

When you buy a fast food franchise, you can cater to a large potential customer base since fast food is a popular option for all demographics and age groups, meaning you can appeal to a larger potential customer base than a fine dining franchise business since most people can afford fast food no matter which area they are in or their age groups allowing you to get customers through the door as soon as possible.


  • Low barrier to entry

 Fast food franchises have a very low barrier to entry as all training and support is provided to you by the franchisor, and usually, fast food franchises do not require any specialist skills making it an exciting business venture for anyone depending on whether you have previous experience in the fast food industry or not you will be treated equally by your franchisor as a new franchisee.


  • Fast food franchises have high success rates

These days buying a fast food franchise is a much more popular option than opening your own fast food small business since franchise businesses are known to have significantly higher success rates than independent businesses making it an appealing opportunity.


  • Trade under an established brand name

Another reason why fast food franchises are becoming so popular is that it gives new entrepreneurs an opportunity to trade under an already established and trusted brand name, allowing you to see a faster return on investment (ROI) than other business opportunities. 



We hope this article has helped you understand the basics of how fast food franchises work and also why fast food franchises are becoming such a popular business venture in the UK. If you would like to learn more about buying a fast food franchise, feel free to check out our dedicated franchising blog at Franchise UK to learn much more about fast food franchises and the perks of investing in one of them.

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