Understandably, not everyone is going to have a look into franchising and decide that they want to take on more than one territory, store, or location all at once- but some do. For those people, multi unit just makes more sense. Another group that sometimes considers multi unit franchise didn’t start out that way, but perhaps discovered the location that they found themselves in, the franchise they’d bought really worked out well, and from an economics standpoint- more locations equals more profits. The realist also says that it brings about more issues in management, staffing and overhead, but at the same time, for many, this is a risk that pays off in some big ways.

One of the best things to have going for you is in fact already being a franchisee with a given company, and having a great working relationship. The franchiser is the one that is going to be in your corner, particularly if you have been a success within their umbrella. More often than not, franchisers are very encouraging of this method of business because it does mean more profit, and usually they offer a wealth of resources to those seeking to expand.

Also, the relationship you have with your current supplier may take on a whole new light as more locations mean more volume of order- which often comes with some exceptionally nice discounts for higher quantity. Banks tend to favor second locations and more also, if the franchisee has an already established business that is turning a nice profit or a stable one.

A key thing to remember when thinking about going multi unit is that you have to be realistic and conservative. If you’ve got the capital to open more than one location at a time, you still need to be sure of many things- for instance, not every location is going to work out well and that can really cause financial distress on your entire system. This is where demographics and studies of the area are going to come in particularly useful as you will have to have a very clear understanding of the areas in which you plan to expand and what sort of profits you can realistically bring in from them.

Multi unit franchising may seem like a steep hill to climb for some, and for others it may be exactly what they seek out to grow. Depending on your long term goals, capital and the passion you have for your work, you may find that multi unit franchising is just the thing for you.

However, in more recent years, waste oil has found a new use as bio diesel.  As the movement toward finding more environmentally friendly fuel sources has taken stronger root, waste oil has begun being used to power vehicles.  An ever growing number of waste oil fueled, converted diesel automobiles are beginning to make use of what the restaurant industry produces and discards on a daily basis.

There are a number of benefits to using bio diesel, both for the environment and for the motorists who drive bio diesel powered vehicles.  Bio diesel is environmentally friendly, burning much more cleanly than traditional fuel (and making better smelling exhaust, to boot).  The cleanliness and renewability is good for the planet, the ready availability of free fuel is great for motorists.

Recycled vegetable oil, when used as a fuel to power converted diesel engines produces no SO2 and significantly lesser amount of CO and polycyclic aromatic hydrocarbons than traditional diesel.  SO2, a natural product of burning traditional diesel is the chemical substance responsible for acid rain.  The cleaner burning bio diesels are simply better for us, better for the planet and better for our future.
Bio diesel offers more than just a way to reduce pollution though.  Because the waste oil that is used is a natural product of the food-service economy within industrialized countries such as the U.S. it is a readily renewable resource.  In fact, its production contributes directly to the economic wellbeing of the country while reducing the nation’s reliance on foreign oil resources.

Increased use of vegetable oil helps more than just restaurateurs, as well.  According the U.S. Department of Agriculture a simple increase of 200 million gallons of vegetable oil use in the United States would have major implications in the agricultural community also by injecting an additional $300 million in revenue into the agricultural economy.

The use of bio fuels has already become popularized at the pump.  In many cases it is used to augment and supplement standard fuel.  In other instances it is used in and of itself.  However, the rise in the number of vehicles that have been converted to run on used waste oil has created even further reaching implications for the use of vegetable oils as a viable fuel source.

Almost any automobile with a diesel engine can be cheaply altered to operate on used waste oil.  Converted vehicles must still utilize traditional diesel fuels (for now) during a warm up and cool down period, but are able to drive on filtered used oil or on clean, fresh vegetable oil.  The mileage gotten on vegetable oil is comparable, and in many cases is better, than that gotten by use of diesel fuel.

Still, the process required to convert a diesel vehicle to run on waste oil, as well as the process for filtering waste oil to make it useable as fuel makes it impractical for many people.  Nevertheless, this advancement bodes well for future developments in the use of vegetable oil as an alternative fuel source.

The next thing that you need to have in place is a five year plan. This may or may not include the potential franchise you are looking at- but what this does is to map out your lifestyle and this way, you can sort of cross reference it to the various franchise options you are looking into and decide if the franchise is a good fit. This will help you to narrow your choices down quite a lot and help you to really find a franchise you feel good about for the long term. In addition to this, at this time you may want to consider talking to the people at the franchise, looking into it more deeply and getting more informed so that you know exactly what this will entail and what your responsibilities and rights will be. Again, you do this in order to see if the franchises you are looking into fit into your life, and if they can stay a stable part of that long term.

Once you have this in place, you probably already have a good list of prospective franchises. The next thing to do is analyze start up cost. It’s a good idea to have not only enough for start up but enough set aside to get you through start up and keep you afloat until you have your feet on the ground a bit. Sit down and working with your five year plan, consider the long term, and consider which franchises fit into that long term budget and what you feel comfortable with. This should narrow the list even further.

Basically, the very best thing you can do is to begin with a list of prospective franchises, and then, weigh the information your receive on them as it comes in, against your own goals and dreams. One of the bigger mistakes that some people make is not going into a franchise sure that it will fit in with their lives- remember, going into business for yourself is also about quality of life. Make sure that you are reasonably aware of what the job is, what parts of it you’ll have to be very involved in, and if that franchise really is for you.

The type of oil you use in your fryers and the way that you keep it clean can have a significant effect on your kitchen operations.  Not only does the type of oil you use affect the taste of your fried foods, but the way you clean it can affect how long you can use it.  If you are looking for ways to streamline your kitchen operations that won’t diminish the quality of your products, then the fryer is a great place to start.
Let’s start by taking a look at some numbers.  The average fryer capacity is about 20 gallons of oil.  At an average cost of around $5 per gallon, that’s $100 per fill.  Now let us assume an average cooking life of 4 days between changing out oil.  Of course, through use you lose about 20% of the oil volume in an average day of use.  That is 4 gallons, or $20, each day.  That comes out to about $180 in oil cost every 4 days.
Selecting an oil with a higher smoke point, such as peanut oil can improve some of the longevity of that oil so that you do not have to change it so frequently.  Peanut oil may cost significantly more per gallon than other oils, but since it will not ruin as quickly you can use it for much longer.  Over time, using more expensive oil can actually save you money.  This is only true if you adequately filter your oil though.
Filtration is extremely important for oil life and for controlling costs.  Filtration is the single biggest factor in the overall life of oil.  By extensively filtering oil and by teaching your staff proper filtration procedures between use, you can almost double the usability of your oil.

For maximum efficiency in oil use, your staff should be filtering the fryer oil using the factory equipped filtration system at least once a shift.  Simply doing this can drastically increase the usable life of the oil in your fryers, saving you a lot of money.  However, there are other basic policies in fryer use that should be stressed to your staff.

What actually causes oil to degenerate and become unusable is the tiny particles that break away from food during frying and remain in the oil.  These particles burn as they remain in the oil and destroy the integrity of the oil.  By using a skimmer to remove particles before they begin to burn and break down, oil can be kept clean and usable.  Your staff should skim fryer oil after every use to keep it lasting as long as possible.

While not every franchise is going to be able to give you a solid estimate of how much you can actually earn, they can deliver some pretty big promises based on estimates made using statistics of similar franchisees. However, there are a number of legal reasons that some won’t do this- it is not usually because the franchise has anything to hide, it’s more over a legal maneuver for the protection of the company. The projections are known as Financial Performance Representations and these can usually enable a prospective franchisee to at least get a decent idea of how well a franchise will work out for them. If you receive your FDD and there is no item 19, asking the franchise why this is can help you to also gauge the company’s integrity. As stated prior, the absence of an item 19 is not so much a red flag, and generally speaking, an honest franchise will be able to clarify to you exactly why they did not include it. This is a very important part of the document when it is included, and like all aspects of the FDD, you have to read the whole thing through and note aspects you are unclear on so that you can ask pointed questions. The only way to make a fully informed choice about this important investment, is to be fully informed. While this may sound very obvious, statistics do show that many prospective franchisees do not read the entire disclosure document in its entirety- and this causes much worse things but can lead to unrealistic expectations and failure.

For the ones that do include this section, it is absolutely vital that you full read the FPR- because sometimes, statements may be true, but padded a bit in favor of the franchise. Common ways of doing this are taking the most successful franchise locations in the company, during their most successful months and using those statistics. Paying careful attention to the way these projections are displayed, as well as how realistic they seem to you is a good way of working it through with a critical eye. Again, this is not a red flag, it’s simply smart business, however, balancing this in with your overall impressions of the company, those representatives you have spoken to, and the rest of the FDD can enable you to have a very clear picture of exactly what that franchise can do for you.

Over time many owners begin to realize that franchise ownership was not quite what they had anticipated.  The very involved franchisor, who at first seemed like a great and solid support as the new owner struggled to establish the franchise, may come to seem like more of a meddlesome burden.  A great number of franchisees begin to realize too late that what they thought would be their business has not done much to increase their sense of independence.

The high degree of accountability involved may make franchise ownership feel a lot more like employment than business ownership.  Though the franchisor may have represented franchise ownership as a collaborative effort between franchisor and franchisee, this is seldom the case.  The reality is most often that the franchisee finds him or herself under the thumb of a watchful franchisor that dictates much, if not all of the aspects of the business.

This sense of not owning his or her own business can lead to a high degree of dissatisfaction.  This disenfranchisement with the franchisor is only compounded by the ongoing royalty fees due to the franchising organization.  The added cost of doing business, coupled with heavy restrictions can quickly sour the franchise owner.
Franchise royalties may seem well worth it while the franchisee is first starting out.  As the franchisor helps to establish the franchise and to guide the franchisee in successful operation, the franchisee may not begrudge having to hand over a hefty percentage of the franchise’s revenue.  However, as the franchisee becomes more sure in his or her ability to run the business without the assistance or interference of the franchisor, those ongoing royalties may begin to feel like paying for the privilege of being subservient.

The twin barbs of minimal independence and ongoing royalties are what most often create schisms between franchisors and franchisees.  Unfortunately, these two aspects are inextricable parts of franchising.  There is little the franchisee can do to circumvent them and it is in the franchisor’s best interest to adhere to them.
Since franchisor control and royalties cannot be eliminated from franchising, it is the responsibility of the franchisee to find out how much of each will be expected by the franchisor and to determine if those amounts are acceptable prior to entering into a franchising agreement.  Not all franchisors require the same percentage for royalties.  Not all franchisors exercise the same degree of control.  The investor must find a franchisor who meets his or her needs.

The best way to do this is to ask questions as early as possible.  Much of this information can be found in reading the franchisor’s Franchise Disclosure Document.  However, the most reliable way to find out the truth about franchise ownership under any franchisor is to talk to the franchisees who already operate under the brand.

As time progresses and the owner becomes more confident in his or her ability to effectively manage the business and as the franchise becomes stable and well entrenched in the community, the ongoing cost of being a franchisee may seem less worthwhile.  The role of the franchising organization may lessen, but the royalties due do not.  However, once contractually committed to a franchising organization, extraction is not always a simple or inexpensive matter.  Therefore, it is much better that anyone considering becoming a franchise owner understand the long term implications of entering into a franchising contract as well as having a clear idea of just what the ongoing costs are really paying for.

The Reality of Royalties

It is in the best interest of any franchisor to make sure that its franchisees are well equipped to successfully own and operate a franchise under the brand name.  That being the case, many franchisors take a hands-on approach to establishing new franchises and offer a lot of direct interaction.  Many franchisors will provide training and support, especially during the start-up stage and the first few crucial years.

All franchisors collect royalty fees from their franchisees.  Though the percentage varies from company to company, ongoing royalty fees are something that every franchisee faces.  During that initial period of heavy franchisor involvement, it can be easy to fall into the mindset that those royalty fees are paying for an ongoing level of similar support.

In many cases the franchisor will indeed continue to offer a high degree of support.  However, if the franchise owner begins to view that support as something that is due him or her because of the royalties he or she pays, then that owner may become sorely disappointed.

The truth is, the ongoing royalty fees are simply compensation to the parent company for continuing use of its name and business model.  Anything else provided by the franchisor will either be provided by contractual agreement or by fees assessed as other than those labeled as royalties.

Other Fees
To help minimize confusion on this matter, and to protect themselves, most franchisors itemize the fees that will be assessed.  It behooves any potential owner to understand what fees their franchisor will collect prior to entering into an agreement.  There may be additional ongoing fees to cover marketing, support and other facets of franchisor involvement.
It falls to the franchisee to decide if the fees assessed by the franchisor are reasonable.  A wise investor will try to think 5 to 10 years into the future.  If he or she can picture viewing those ongoing fees as more of a burden than the value they will provide, then he or she would do well to reconsider committing to that franchisor.