Fast food restaurants have become as "American" as apple pie.
The fast food business can mean big bucks for those who have the know-how and the available resources to get into the business in the first place. According to the VivaVegie Society, one in four Americans visits a fast food restaurant every day, and more than $110 billion is spent by American citizens on fast food each year. Knowing what is needed to get started in the fast food restaurant ownership business is usually half the battle in getting started.
Business Plan
Going into the fast food restaurant business requires that you first have a business plan in place to ensure your success. It is shortsighted to assume that you can simply put up the capital needed start up a fast food franchise and expect it to succeed. The U.S. Small Business Administration recommends first conducting extensive research to determine the best potential target market, prices and location to determine which type of fast food business will provide you with the most viable opportunity.
Capital
Significant startup capital is needed to start a fast food restaurant. Whether you are starting your niche restaurant or purchasing an established franchise, a large sum of money will generally be needed to get going. Some franchises can be started for as little as $10,000 to purchase the franchise tag, while others can be significantly more expensive. Some of the more prominent national fast food chains can require as much as $500,000 in startup funds.
Experience and Education
In some cases, you may have to meet certain education and experience requirements to be considered for a particular franchise. Just because you have the startup funds does not mean that the franchise will allow you to hang its sign on your building if it doesn't think you're capable of running its business model. Having a degree in hospitality management can go far toward ensuring your success in the fast food industry. Significant experience may be required as well. Entrepreneur magazine recommends gaining several years of industry experience to learn the ins and outs of the industry from the ground up.
Legal Compliance
Your fast food business will also have to operate within the law. Before you start up your business, you will have to select a location and ensure that it is zoned for business purposes. You will also have to obtain any permits and licenses required by your state and local community. In addition, your business will have to be registered with the Internal Revenue Service for purposes of taxation.
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