So You Want to Buy a Restaurant...

FOOD 101 | Do you have what it takes to be a successful restaurateur? Our franchise expert offers some words of wisdom.

- JEFF ELGIN

When most people think of a franchise business, they first think of burgers. Or pizza. Or coffee (and donuts). Or tacos. There are, of course, many different markets in which franchises thrive, but the success and growth of numerous fast-food behemoths have made it so that, if you were to play a game of word association and offered up "franchise," most people would probably instantly respond: "McDonald's."

But your first thought shouldn't be your last one. When deciding whether to purchase a restaurant franchise, you must focus on the characteristics of the business from a franchisee's perspective. Only that can determine whether this industry is the right one for you.

Popularity is one of the wonderful advantages of having a food business, but there are also some challenges you need to be aware of before entering this industry. Here's a breakdown of what you'll need to keep in mind.

The Advantages

Built-in demand. Consumers want consistency in their food, so they have been trained to look for franchises. This can be a big advantage for a startup-but make sure that the food a franchise sells has staying power. Fringe products can be precarious, and fads fade.

Familiar financing. Traditional lending sources are well-schooled in the real estate and equipment needs of a fast-food operation, which may ease the challenge of getting the funding you'll need. Better still, lenders like the often-high revenue that a typical food franchise offers.