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Franchising 101: How Franchising Helps Restaurants Thrive  

By August 28, 2018May 3rd, 2023No Comments

Opening a restaurant can be a risky business venture for first-time operators. On top of everyday operations, restaurants deal with issues like inventory management, high staff turnover and guest relations.

For someone with little-to-no experience, it can be a challenge to navigate these issues, but franchise concepts help mitigate many obstacles restaurateurs face by offering an established business model and a defined structure for operations, bridging the gap for new owners. In fact, restaurants are some of the most popular franchise opportunities, making up a quarter of the brands that apply to the annual Entrepreneur Franchise 500.

Franchising creates a lower risk opportunity to start a restaurant business. The following aspects of franchising and the franchise model benefit new entrepreneurs:

What is a Franchise?

what is a franchise

A franchise is a licensing relationship that allows a franchise owner to use the name and business operations of a brand to open an independent store location in exchange for fees—an initial franchise fee and continuing royalties. These fees account for use of the brand name and business model and help with brand development, marketing, advertising and the overall health of the brand.

Franchise locations give franchisors more freedom to expand the reach of a brand at a lower financial and time investment. Franchise owners invest the initial capital, and franchisors support the relationship. Corporate training, marketing initiatives and established operational manuals make business ownership seamless for new franchise owners.

The franchisor’s established name helps franchise owners start on the right foot with brand recognition and an existing guest base. As independent businesses, franchises give entrepreneurs the right tools to start a business while stimulating the local economy.

Benefits for Restaurant Franchises

On top of day-to-day activities for business owners, restauranteurs must manage additional aspects like inventory, guest interactions and vendor relationships. It can be tricky to nail down these concepts, and a franchise can help first-timers build up these areas of their business.

With relationships, recipes and processes developed and perfected by the corporate team, franchise owners can focus on their location, grow their business and lean on the franchisor when necessary. The process is simplified, and franchise owners can see a more stable route to initial return on investment by avoiding some of the common pitfalls independent restaurant owners may face.

Angry Crab Shack Franchising

angry crab shack franchising

While full-service restaurant concepts tend to have the largest initial investment, they often produce the highest return. A concept like Angry Crab Shack has perfected a low overhead, high return investment through simple kitchen operations and attracting a loyal guest base.

The seafood franchise is also deeply ingrained in the community, working with causes like the Phoenix Children’s Hospital, veterans and helping various athletes in raising money for their foundations. Angry Crab provides an avenue for franchise owners to give back and continue making a positive name for the brand.

Getting into the restaurant world doesn’t have to be risky. With a restaurant franchise, owners can use corporate support to build a strong foundation and grow the concept. Angry Crab’s simple operations are a great option for a new restaurateur and are conducive to high returns.

Ready to pursue your entrepreneurial dreams through franchising? Contact us today to learn more about the Angry Crab Shack franchise opportunity!


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