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How Do Restaurant Franchises Work?

Restaurant Franchise

A restaurant franchise opportunity is the most common type of franchise. In most of the country it is impossible to drive down a highway without running into several restaurant franchises along the way. Some of the most common restaurant franchises are Subway, KFC, Taco Bell, Starbucks, Tim Hortons, Dunkin Donuts, McDonalds, Burger King, Chick-Fil-A, and Pizza Hut.


A restaurant franchise may be located in its own buidling, although restaurant franchises can also be located in larger structures, such as a mall or other kind of shopping center. Sometimes restaurant franchises may operate togeter, allowing a restaurant franchise opportunity that is able to obtain the benefits of two different restaurant franchises under the same roof. However, the combination of different restaurant franchises is somewhat rare. Frequently, each restaurant franchise will operate separately.

Sometimes a business owner who has experienced success with a restaurant franchise will seek to open another restaurant in order to maximize the restaurant franchise opportunity for profits. A restaurant franchise opportunity will allow an individual restaurant to benefit from the restaurant franchise's national or regional marketing promotions.

In addition to national restaurant franchises, a restaurant franchise may focus its branches in a specific region. No matter how much area a restaurant franchise covers, however, restaurant franchises must make sure that the individual branches do not compete with each other for customers, either because they are too close together or because of offering different promotions or prices for the same meals.

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