If your restaurant utilizes fryers then you already know what a burden fryer maintenance can be on your staff and what a strain it can be on your budget. You may want to cut costs, but are unwilling to sacrifice the quality that your customers have come to expect from your establishment. There are ways of improving your fryer use while containing cost, though.
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.
With more and more resources at their disposal, business savvy prospective franchisees, now more than ever have the best of everything when it comes to researching a potential opportunity. Being able to match up with a franchise that can meet both your financial and personal goals is one of the cornerstones to becoming a successful business owner through franchising. Using the new format laid out with the FDD, or Franchise Disclosure Document, it is much easier to see now if the franchise you are looking into does in fact hold the potential for you to reach the goals you set for yourself.
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.
Franchise ownership can seem like a wonderful opportunity. Certainly franchisors market their brand as a great deal for investors looking to own their own businesses. To the investor looking at first time business ownership, buying into a franchise may seem like the answer that they have been looking for.
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.
The appeal of franchise ownership is strong. During the complicated start-up phase of establishing a franchise, when the franchisor plays a crucial role in the process and is very involved with the franchisee, the new owner may feel that he or she is definitely getting a good deal. The edge that it gives the first time business owner is often well worth the higher start-up costs and the contractual commitment – at least at first.
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.
Feb
Owning a franchise can seem like an exciting chance to go into business for yourself. Franchisors often present their franchises as just such an opportunity. Truthfully, franchising does offer some remarkable benefits for the investor looking into ownership for the first time.
Is franchising all that it’s cracked up to be, though? There is certainly a lot of talk about the many benefits of franchising, such as franchisor support and brand recognition. While these aspects of franchising definitely do increase an owner’s chances for success, they do come at a price.
Many new investors may see the cost of entering into a franchising arrangement with a franchisor as well worth it for the increase security and improved chances of success. However, in time, they may come to regret their decision to become contractually obligated to a company that exercises so much control over individual franchises. In many ways, franchise ownership takes much of the control away from individual owners and puts it into the hands of the parent company.
This loss of control over the business can lead to a high degree of dissatisfaction for the franchisee over the course of running the business. Having to remain accountable for every action, having to conform to brand standards and having to pay ongoing fees can leave the franchisee feeling more like an employee of the brand than an owner. This unrest among franchisees is one of the leading causes of conflict between franchisors and their franchisees.
When a new franchisee first enters into an agreement with a franchisor the involvement of the franchising organization may be very welcome. As the franchisor helps with start-up and training the new owner to successfully run the franchise, the franchisee may feel that he or she is getting his or her “money’s worth” from the franchisor. In fact, the franchisor does play a very critical role in the success of the franchisee, especially during those critical and precarious first few years.
Over time, as the franchisee learns to run the franchise more and more without relying on the franchisor, then that level of involvement can begin to seem more like an infringement into the owner’s business than a positive component of success. Just because the owner becomes more sure of his or her ability to handle the day-to-day management of the franchise without need for constant franchisor involvement does not mean the franchisor will back off. On the contrary, it is in the franchisor’s interest to retain a close eye on the operations of all franchises.
Franchisors monitor their franchisees closely to ensure that the standards established by the brand are upheld. Franchisors also tightly regulate franchises to make sure that they are meeting their maximum potential for profitability. Though this benefits both franchisor and franchisee, it can become a source of friction.
There is only one way to avoid franchising remorse. This is to thoroughly research a franchisor prior to entering into an agreement. Only by finding out what level of involvement the franchisor will have can a potential investor make an informed decision about whether or not it is worth it.
Franchising is definitely a growing trend. Many seek out franchising opportunities as a means to enable them to become self employed. Others see this as a potential solution for long term financial goals that suits their lifestyles. In other cases, there are many who feel that they are locked into their jobs, and many of these professionals look to franchising as a way to break free and begin their own career paths. For whatever the reason, franchising has really become something of a force in the market. Currently, according to statistics there are over 750,000 franchise businesses in the United States alone, making up almost 4% of all small businesses.
However, the thing to remember is that franchising really is a serious investment and as such a great deal of time and thought need to go into not only researching the opportunities out there that are available- and with more than 1,500 franchisers out there- there are plenty, but more than that, deciding if the franchising lifestyle suits your own, and your personality. Many people assume that franchises are just a “business in a box” and that they are comparatively effortless, and that is simply not true. While yes, start up can be much more efficient, and there usually is a good support network in place- much of a franchisees success is dependent upon themselves and the effort in which they are willing to expend. Understanding that though yes, you are technically your own boss, you still have some one to answer to in the larger company as a whole, and that you will still need to put in many hours of hard work is key. While still understanding that you are in business for yourself and you will still need to take a lot of steps yourself, really continuing to move forward making choices that benefit both your individual business but the franchise as well- this is a balancing act that few realize has to happen.
Prior to deciding on a franchise, it is always best to look into every facet of it. If you’ve got a list of franchises you are interested in, continuing to research those further will help. Speak to anyone you can who is active in the franchise, and figure out what it takes to succeed, also. Personal opinions of current franchisees are valuable and can teach you a lot about what will be expected of you and what sort of person it takes to succeed in that given franchise. Also take note of any disclosure documents you receive and talk about your options with both your attorney and your accountant about those aspects of the franchises that seem to offer you the best option.
Being able to make a very informed choice is just as important with a franchise as it is with any other investment or business. You need to be very sure that you are absolutely clear on every facet of the business itself, before you decide, not after you sign the agreement.
When the economy seems to be fluctuating and unsure, many people look for ways to ensure that they can stay on firm financial footing. Most people do not consider investing or starting up a new business, when in fact- this can be exactly what they should be looking at. There are many different options for self employment and reasons why it is a good alternative. Looking at the unemployment rates in recent years, it is no wonder that some are choosing to become self employed. Doing so ensures that they know exactly what is going on with their business and their finances, so there are no surprise lay offs or closings.
“In the past few years we have seen more than 6 million American jobs lost and unemployment rates rise to more than 10%. Unemployment is typically a lagging indicator coming out of an economic recession. After the recession in the early 90’s it took an entire year for unemployment rates to peak.” Said David Nilsson, the co founder of the Guident Financial Group. His company provides funding for small businesses. “ If this trend continues during the current recession, unemployment rates could continue to rise until the end of 2010 or early 2011. For this reason, we feel it is important that some individuals investigate self-employment opportunities.”
One of the most stable means to become self employed is in buying or starting up your own business. Many people feel intimidated by this as they are not certain as to how to go about this, and for them, franchising may be an option that makes more sense. Looking at the options available to potential franchisees is a great way to scout out a potential solution to uncertain financial times and there are a number of advantages to franchising over independent business that really show truer during a difficult economy.
The first advantage to buying a franchise is that the start up is much easier, more efficient and faster than independent business. Because most franchises already have a system in place, they tend to go from signing to start up in much less time than independent business, and more often than not, franchises also have a great support system in place. Finding suppliers, equipment and other things is usually a part of the deal, but it is not in all. Franchises are up, running and drawing a profit very rapidly and tend to have the benefit of a recognized name that people trust behind them, as well.
New funding options are available through recent programs, or traditional means of financing are available. Because most franchises have a proven system and the numbers to make for a much more accurate prediction on profitability- it’s easier to produce a business plan that makes for a very strong argument in funding through banks or other institutions.
It has never been a more critical time to consider ways to become self sufficient. As more and more companies close their doors and more find themselves unemployed, it may not seem the time to invest- but for some in the position to do so, this may be a solution.
There are numerous concerns about the environment and about the US dealing with foreign oil. As these concerns grow, so too do different camps that all have some sort of alternative. Bio diesel is emerging as one of the best alternatives, and for every sort of lifestyle there is another way of doing things. There are many reasons to explore alternative fuels, and here we will go into a few of them and why they may appeal to you, as someone who may be contemplating a switch. Firstly, the list of alternative fuels is growing all the time. Currently, there are several that are showing great potential.
Alternative Fuel Sources:
•P Series: P Series is an alternative fuel that is used in flex-fueled vehicles. This colorless, odorless fuel sits between 89-93 octane.
•Hydrogen: Though most hydrogen is used by refining petroleum, it can also be produced via water. By passing electricity through water, also known as electrolysis, hydrogen is also produced.
•Propane: A natural by product of petroleum and crude oil refining.
•Electricity: Currently on the market there are numerous hybrid cars that utilize both electricity and petroleum based gasoline.
•Bio Diesel: made from vegetable or animal fat, is considered a viable alternative to diesel fuels.
•Blends: These are becoming much more common. These are generally mixes of traditional fuels and alternative fuels such as B20, or E85.
One of the biggest reasons that people make the switch is the environmental impact. Reducing your carbon footprint has become a very big issue and many people seek out alternative fuel as a means to doing just that because they are generally lower in pollutants. As we continue to strive to make the world a better place, another benefit is that use of bio diesel and other alternative fuels helps set the stage for a much more sustainable future. Taking these steps now, ensures a better future for generations to come and alternative fuel sources is just one big step.
Another reason is agriculture. Most of the more environmentally friendly alternative fuels are very agriculture supportive- bio fuels are dependent by and large on the crops that farmers grow- this supports the agriculture industry in a big way. Also, the benefit of it being a sustainable source of fuel, as well as one that replenishes yearly means less dependency on fossil fuels, or fuels that cannot be readily replaced.
Economically speaking, these alternative fuel sources are just as big of a break for the wallet as they are the planet. Not only are alternative fuels generally cheaper to produce, as well as use, but they are also usually easier on equipment. This means longer engine life, which again is an added benefit. On the whole, use of alternative fuel just makes a great deal more sense. As newer techniques for refining come out, making it more convenient, there is no real reason not to make the switch.
Since it has become much more popular, it is now easier than ever to obtain the waste vegetable oil needed to make bio diesel. However, you still may need to follow a few simple guidelines in order to get the waste oil, so that you can then either convert it or have someone do it for you. There is a great deal of talk about how to obtain the basic vegetable oil, and about the best ways to go about asking but most people find being direct is key. Simply make sure that you are showing that there is benefit to both you and the food service owner or management. For you, it is a very economic fuel source, for them, it is a way to get rid of the oil without having to pay fees or deal with local regulatory hassles. When you are striking the deal, be sure first of all that it is straight vegetable oil and not a shortening mix. While shortening mixes will work, they are not as beneficial as vegetable oil and both shortening and animal fat based grease have a harder time making good reactions.
If you have made an arrangement with a supplier restaurant, make sure that you are very prompt in pick up. When you say you will pick it up a certain time and day- do not cancel or be late. Make sure that it is as trouble free as possible so that you can continue to maintain a good working relationship. Many places will put the oil into barrels or jugs that you can use- and if you do find a food service establishment that will, you do not want to lose that.
If you ever want to find out how beneficial that is, just try picking it up from one who won’t- you’ll appreciate those all the more. Above all, be sure that if you decide that you do not want to continue picking up, you let the management know. Keep things very professional and make sure that you are openly communicating with the people from whom you’re getting your waste oil.
The best means of transport is one that keeps spillage nonexistant or low- waste vegetable oil is very hard to clean out of upholstery or other fabrics, and you need to have tight lids and a tight space. Keeping barrels, jugs and other transport containers tightly closed and wedged into a close space prevents spillage. Many people make use of crates- a few large buckets with tight lids such as disposed of pickle buckets will fit into a crate, firmly packing the buckets so that they cannot move- which is best if you want to avoid spills in your transport vehicle.
Once you have it to a place where you store it, home or garage, be sure that the lids are still tight when you move them from your vehicle. These are the first steps to making sure that you start off your journey to bio diesel in the right way, and one that will work for you.
For some, the franchising fee can seem a little bit intimidating when considering a franchise versus an independent business. However, taking into account now that recent studies have proven almost half of all consumer purchases were through franchises, and less than five percent of businesses currently operating in the US are franchises- the odds look really well in favor of the franchisee. That aside, another thing to remember is that with the franchise, you are purchasing much more than just a business, but an overall package- and one that can be set up and running much more quickly than independent businesses usually can be.
The franchising fee is often confused with royalties- but the two are not remotely the same. Royalties are usually either a percentage of the gross revenue or a set rate that’s paid on a more often than not monthly basis throughout the life of the franchise. The franchise fee itself is a one time fee that basically takes care of the things outlined above and further in the article- this is the rights to the brand, the business model and often access to equipment and other things you would not have on your own.
A look through the disclosure document that the franchiser provides you will make it easier to understand both their franchising fee, but also any other fees or on going payments you will be required to make and why. The franchising fee itself, however, is a one time fee, in most cases, and this ensures that you have the right to use the franchisers’ name and their system of business. It may also include other things, however, that is the sort of thing that the disclosure documentation will tell you, as well, likely the representative you’re talking to about purchase.
The cost of the franchising fee often depends on the franchise itself. While buying into a hotel franchise, you may find the initial investment pretty steep- around four to six million, but the high rate of profit, and the quick way that most of these are set up well makes up for that and any ongoing costs. If you were looking into a full service, more sit down establishment type of restaurant, it may be a price tag of up to 3.5 million dollars, but again- the same applies and this is generally true of any franchise you may be considering. Typically, though, there is a franchise that can suit the needs of anyone looking to buy in, and for those looking for something a little less large scale, home based franchises offer a much less expensive buy in.
No matter what sort of franchise you are looking into, the chances are good that you will be paying a franchising fee. The best way to asses if the investment is one that will pay off for you is to pay careful attention to the projected earnings or those of nearby locations or territories. Couple that with a strong look at yourself and if you feel that you can do all it takes to succeed, and sometimes, the fee makes more sense.