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Culinary

What are the Different Types of Food Franchises?

By Dulce Corazon
Updated May 17, 2024
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A food franchise is an agreement between a seller or franchisor and a buyer or franchisee to allow the franchisee use the franchisor's food-related business in exchange for a certain sum of money. The rights granted to the franchisee include the use of the company’s name, trademark, goods, and services. There are many types of food franchises including bakery goods, coffee, energy drinks, ice-cream and tacos, among many others. Of all the food franchises, the most common are pizza, fast foods, restaurants, and vending machines franchises.

Because pizza is a popular food, pizza businesses are among the most common franchises. Owners of several popular pizza parlors have been offering their businesses for franchise. Because fast food is another popular meal, fast food franchises are also popular businesses. Most of these fast foods franchises already showed stable platforms and remarkable growth in the industry.

Another popular choice among food franchises is the restaurant franchise. This is an ideal venture for businessmen who love providing and serving meals. Restaurant franchises can include a variety of dining environments and myriad types of cuisine. An advantage for the franchisee is that the brand and the menu for a franchise restaurant have already established and are familiar to many.

Vending machines franchises are the most convenient and most affordable of all food franchises. Only a small space is required for the machine and there is no need to hire anyone to serve as manpower. These mean low start-up cost, low overhead and low working capital. Examples of these are gumball vending, soda and cold drink machines, and chocolates vending.

Many businessmen believe that getting a franchise is better than starting a business from scratch. Food franchises have already been tested in the market, and their names are established. Another advantage of getting a food franchise is the inclusion of helpful rules and guidelines from the franchisor on how to maintain the well-respected name of the business. Most franchisors also teach the franchisee how to train his employees in providing the best quality services.

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Discussion Comments

By Krunchyman — On Mar 21, 2014

Great article. McDonald's is my favorite fast food franchise. Also, I thought I'd bring up vending machines while I'm at it. As the article says, they're definitely one of the most convenient franchises. All you have to do is pay and take your snack/drink. There are no long lines, or waiting ten minutes to get what you want, such as at a restaurant. One problem I've noticed, however, is the rising cost of vending machine snacks. One dollar may not seem like a lot, but it is for a bag of skittles.

By Euroxati — On Mar 21, 2014

@Viranty - Well, I do know that the franchise hasn't completely closed down, but I'd like to make note on your comment about poor service and cheap food. In my opinion, if someone wants to build a franchise, not only are they going to have to work for it, but they also need to make sure that the quality of their food is consistent.

As an example, why do you think so many people go to McDonald's and Taco Bell? Sure, the taste isn't great, but it's still consistent. As for Bacci's Pizza, I would say that it's their fault they were shut down. Besides, they knew that if they made cheaper ingredients, that customers wouldn't come anymore, right?

By Viranty — On Mar 20, 2014

Speaking of fast food franchises, does anyone know if Bacci's Pizza is still around? I actually remember going there a few years ago, but unfortunately, they shut down due to poor service and cheaper tasting food.

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