Thinking about investing in a franchise? Here are four great tips for investing in the right restaurant franchise! At Safeguard, we offer additional advice on everything to take your business to the next level — don’t hesitate to ask us any additional questions!
The trading floor is the epicenter of the financial world, and where Freshii franchisee Jon Blob used to spend his days. Blob worked in equity research on Wall Street for years. While there, he got firsthand exposure to restaurant financials, as well as broad exposure to global retailers’ financial and brand-building strategies.
Blob would later move to the buying side of the exchange floor and manage a portfolio of global consumer stocks, of which restaurants were a major focus. Meeting Freshii founder and CEO Matthew Corrin fueled his interest in the company and his own desire to run a business. After research and in-person store visits, Blob bought territory rights in two Connecticut counties and now owns and operates three locations.
Blob shares the financial advice he’s learned between the trading floor and the restaurants.
1. Start with a sound concept
Freshii’s positioning was the No. 1 factor when it came to choosing a brand. Fast casual is the segment of the restaurant market to be in, and I expect healthy fast casual to be on-trend for the foreseeable future. I was and am continually impressed with the brand progression, from my initial conversation with [Corrin] to the time I joined, and continuing to present day.
Given my background, it is no surprise that numbers were important. I was very comfortable with restaurant P&Ls and knew that there were lots of good concepts that weren’t necessarily good businesses generating acceptable ROIs. I believed Freshii was a well-positioned concept with a good product and financially viable model.
Make sure you like the product you are selling and are passionate about the business and brand. Then, ask a lot of questions. Try to piece together a full P&L based on various sales scenarios once you’ve nailed down a territory.
Don’t handcuff the business with too much debt. Debt can really exacerbate a situation if the cash flow is not what you expected, making it all the more important to stress-test your assumptions.
Read More: 4 Tips for Investing in the Right Franchise | QSR |http://bit.ly/2fZQ5I5