For a small business owner, launching a new business comes with myriad small decisions that can lead to success or failure. Certainly, the business’s real estate location is important. So too is the product or service offered and even the size of the business are critical choices.
However, there is no more important choice than what type of business model to launch. For some, it may be as simple as selecting a business in line with their trade or specialty. But for many, it may come down to personal preference.
If you are struggling to choose what kind of small business franchise to launch, we can help provide some guidance. Learn why franchising a Woof Gang Bakery is the preferable choice over launching a fast food franchise.
There are 32.5 million small businesses in the United States. You may be inclined to think that the fast food industry is the largest segment of the market. But you’d be wrong!
According to Oberlo, there are approximately 1 million accommodation and food services companies in the United States. Compare that with 2.7 million retail trade locations, which encapsulates the services Woof Gang Bakery provides. It would seem the market is far more hospitable to retail vs fast food franchise locations. Specifically, at least where small businesses are concerned.
Cost to Open
When planning your business launch, it is also important to consider your upfront costs. In the United States for fast food restaurants, here is what it costs to launch fast food franchises:
- McDonald’s franchise: 40% of the total cost of a new restaurant or 25% of the total cost of an existing restaurant and $500,000 of personal net worth
- Chick-fil-A franchise: $10,000 down payment, with every other aspect of the business being leased by the franchisee as ongoing business costs
- Taco Bell franchise: $45,000 down payment, plus $1.5 million net worth (of which, $750,000 should be a liquid asset)
- Burger King franchise: Down payment between $15,000 and $50,000, plus $3 million in net worth (of which, $1 million should be liquid)
Truly, those numbers are staggering. Defying expectations, it seems one needs to be quite liquid to open a McDonald’s franchise, Taco Bell franchise, Chick-fil-A franchise, or Burger King franchise.
In contrast, opening a Woof Gang Bakery location doesn’t take immense personal wealth and liquidity. Our franchise locations require only $49,900 startup fees. With a lower barrier to entry when compared with fast food franchises, retail is a smart choice. We make it so even more small business owners can be a part of the Woof Gang pack.
Join the Woof Gang
Small business owners looking for their next high-potential franchise opportunity should consider becoming part of the Woof Gang Family. Our franchise process is easy and our customers love us. Learn more about our stress-free franchise process!