This means that Id have to pay for the losses made by the business, even if it meant selling my personal possessions, e. g. my house or my car. Even though this is the only big disadvantage of being a sole trader, it is too big of a risk that Im willing to take. Im also not exactly sure what products or services Id be able to offer customers. Therefore, a franchisee would be the perfect answer. Being part of a partnership is a step up from being a sole trader. There is a lot less work involved; there are still disadvantages that may be a problem for me. For example, one problem would be finding a suitable partner/s.
This a problem because if I had become a partner with a friend or someone in my family, I dont think I would be able to tell them what I really thought of there idea in case I offended them or hurt there feelings. One of the other main disadvantages is that the money is shared between the partners; therefore if I work really hard and the other partner/s dont lay a finger, then they would still get part of the profits. So, I dont think I would be able to live with that. So far, you know why I dont want to be a sole trader or in a partnership. Now Ill tell you why I want to be a franchisee.
The main reason is that there are only two ways that a franchise can fail. Those ways are: if you invest in a franchise that nobody has heard of, sell unsatisfied merchandise or provide not very good service. There are also many small advantages like, I wouldnt have to waste any money on advertisement because the franchisor wouldve dealt with that, otherwise they wouldnt get much money from all the other franchisees that they have. Introduction The two franchises, which Ive narrowed it down to, are Pizza Hut and Dominos Pizza. They are both in the same line of industry, fast food.
Mostly all Dominos Pizza stores are usually take away and delivery stores. Dominos Pizza sells a variety of pizzas, but do not sell or offer as many side portions. Dominos Pizza always has offers or deals that sound, and are really good. Pizza Hut can either be set up as a restaurant or just as a take away shop. If I set up a Pizza Hut restaurant then there wouldnt be any delivery service being done by me. Pizza Hut sells a variety of pizzas, which is their main product. They also have a side menu which you can buy things like salad, garlic bread, ice cream etc.
When I say that you can buy salad there is a salad bar where the customer can choose what they want and can take as much as they would like to eat and is only one fixed price for the salad. There are also other offers that are good for money. Inside these restaurants, there is a lot seating space. The service is very good from the waiters/waitresses. I can say that the quality of the food is good as well. Personally, I think the prices are pretty reasonable. If I decided to open up a Pizza Hut restaurant, I think Id open it up inside St. Georges Harrow shopping centre.
I think that it would be perfect in there, because there is a cinema in there. Therefore, when kids go to the cinema they would usually go with their friends, so they would want to eat either before or after the film. Now you would probably be saying to me right now, there must be other fast food outlets there at the moment? Well I have already thought of that, ask yourself this question, would you rather go to some where like McDonalds, buy your food and then try find a seat, knowing that you may not find one or would you go some where like Pizza Hut, walk in and they give you a table and give you service like youre the only one there?
If I decided to open up a Dominos Pizza franchise, I think that I would open it up right next to the video rental along Greenford Avenue. I think that this place would be perfect because if you went to get a video then most people would have a take away pizza to go with it. So, it is very convenient if they are both right next to each other. Also, because there are always offers and deals with this franchise, so we could always leave leaflets in the video shop. Dominos Pizza From the research that I have done, I found out that if I decided to open up a Dominos Pizza franchise, it would cost me i??
160,000 in total. When I say in total I mean that there are many things that make it to this amount. The first thing I would have to pay for is the construction of the actual store which would usually be about 900sq ft. I would not have to plan any designs because the store is project managed by Dominos Property Department. They do this until the store is completed from beginning to end. The construction cost alone is i?? 68,000. The second thing that would cost me is the equipment. The equipment can be leased but that is a whole different situation.
By equipment I mean like ovens, refrigerators, stainless steel tables etc. I will also have to pay for things like computer systems, telephones systems, security systems and the air conditioning. All of these things would cost about i?? 54,000 altogether. The third thing that would cost me is the planning and architecture side of things. As I said before I only have to pay for all the work being done, I dont actually design the building. This amount of money that I have to pay doesnt include an appeal for the planning if I need it.
This section would cost me 9,000. The fourth and last thing that would cost me are other things like the franchise fee, the training fee, pre-opening advertising and other small items that might be needed. I only have to pay for the training fee for the first store, even though I am only buying one store at the moment. If I put all of these things together, this would cost me 26,000. These prices are only a rough guide. There is still one cost, which I havent mentioned yet, and that is staff. I would have to employ between 15 to 20 people.
Forty per cent of this should be a full time worker and the rest should be part time. I found out that Dominos Pizza would give me 21 days training. This training will be done with people that are in the same boat as me. I would get experience on the practical side of things at a company owned store. Apparently, the pay back time will be around three years with Dominos Pizza. This franchise seems like a good investment because there havent been any franchises that have gone into receivership in the last five years.