Is A Bar or Pub Franchise The Right Choice For You?

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By Dzhingarov

Whether or not you should consider a pub or a bar franchise is a decision that is not easy to make. You will need to consider many different things. There are various advantages and disadvantages associated with becoming the owner of a franchised business. Many believe that this is a great option that helps them to quickly get rich but the reality is not actually like that. You should always consider everything written below in order to make the correct choice.

Advantages Of Owning A Pub Or Bar Franchise

  • Instant Recognition Of The Brand

In most situations this is the very first and most important advantage that has to be considered. Instant brand recognition basically means that you already have customer trust. This is vital for potential success. Reputation and familiarity of the big brand are automatically translated to your new business. It is the franchisor that took most of the risks, survived the competition and understood what has to be done to succeed.

The only problem with this is that pre-established reputation can also be negative. It is really important that you choose a bar or pub that has good reputation. In the franchise world there are many companies that started franchising because of problems. Make sure you do not consider one of these.

  • Great Training Process

The business model is already established for you. This does include training. The franchise normally has a highly comprehensive training process that you can take advantage of when you launch the bar or pub. The reason why this is an advantage is that you do not need to rely on gaining business knowledge somewhere else. You will be going through a training program as a business owner too so there is a much higher possibility that you will find success.

  • Getting A Turnkey Business Ready
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Independent bar or pub ownership naturally involves looking for location, designing the unit, building it, buying inventory, getting distributors and much more. The franchises take care of most of this for you. Franchisors normally offer turnkey packages for the money that you get. This can be full or partial. A turnkey package automatically means that the owner can instantly start doing work.

Disadvantages Of Owning A Pub Or Bar Franchise

  • A Limited Independence

The franchise owner naturally needs to deal with an independence lack. There is a freedom problem that automatically appears. Creativity is also limited. When you sign the contract, the owner has to respect specific rules and regulations, normally limiting various aspects that are of high importance. While this can be great for some people because of the fact that no serious business decision has to be taken, it also stops evolution in various situations.

  • Initial Franchise Opening Cost

Opening a franchise does bring in quite a high price tag. We do not have an average cost that appears. Everything is based on the pub or restaurant that you want to open. In some situations the initial opening cost is high and we should highlight the fact that based on the model that is offered, a part of the profit or an annual fee come in as extras. To make matters even more stressful, when you open the franchise you also need to have extra funds available for costs associated with utilities, accountants, maintenance and so on.

  • Limited Growth

The bar or pub franchise owner needs to understand the fact that there is a limited possible growth. You will be faced with growth restrictions as the parent companies will not want the franchises to compete with each other. You will rarely be allowed to open another pub or restaurant in a close-by location or even in the same city.

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The bar and pub industry is competitive. Being a part of the operations is intimidating and thrilling at the same time when you decide to take the franchise route. You can easily read the advantages and disadvantages mentioned above and make your own decision. Just make sure that you research as much as you can about the subject so that your choice would be a good one.