Not all franchises are created equal, and it is not meant for everybody. Risks might be minimized if you seek help and affiliation with known brands, but it does not eliminate the risks 100%.
For every franchising booth we approached, the first question I always ask (aside from how much) is if they have ready locations for prospective franchisees. You see, selecting a business is difficult, but finding a suitable location for that business is equally difficult.
As they say, “investigate before you invest”. Or, as a GoNegosyo book says, “Luck is the offspring of preparedness and opportunity”.
Find A Driver. A good, reliable, trustworthy driver that is. Or drivers. This can be the make or break of a taxi cab business, according to cab drivers themselves.
If you’d rather start from scratch and try to study their business model instead (imitate and improve), then you may save money substantially but you may lose on the “established intangibles” since you’re still a start up.
Simple right? But in this foodcart industry, simple ideas can also mean more competition because there is not much barrier to entry. Until the market becomes saturated with so much supply and kills those businesses barely making money.
I don’t think JFC and BK have the same target markets. Yes definitely there are overlaps in the target customers, but as JFC puts it, their entry into BK allows them to cater to the premium burger segment: in short to enter the expensive burgers market.
In 2007, I started to notice a siomai foodcart in a nearby mall. Every Sunday, after mass, I’d go there to buy siomai and I liked its taste and flavor. Even their garlic and chili is unique and tasty.