The Woodlands

Are you Really Ready to Buy a Fast-Food Franchise?

March 7, 2023

With the invention of delivery apps, fast-food restaurants are experiencing a boom. According to the U.S. Census Bureau, more than half of all fast-food establishments in the country are franchises. Buying a franchise can be wise, of course, as you can piggyback on an established brand.

If you are thinking about purchasing a fast-food franchise, you have undoubtedly researched the many benefits of doing so. Still, if you want to make a smart business decision, there are some common downsides you should not ignore.


Setting up and running a franchise requires hard work. While purchasing an established brand may give you an immediate customer base, most franchises have strict requirements for you to follow. If you do not have the time or energy to meet these requirements, you may not have found the right investment opportunity.


The cost of purchasing a fast-food franchise can vary wildly, but no franchise is cheap. Even if you have extensive experience working in or managing restaurants, you also must have enough money to buy the franchise. Furthermore, you may need an excellent credit score to secure a business loan.


Reduced risk is one of the more common reasons to buy a fast-food franchise. Reduced risk is not risk-free, though. If the franchise fails, you may lose a substantial sum of money. Likewise, if you want to end your franchise agreement early, you may have to pay a costly penalty.

It can be tempting to look at new business opportunities with rose-colored glasses. Ultimately, by giving the cons as much weight as you give the pros, you improve your chances of making a smart franchising decision. The lawyers at Quadros Migl & Crosby are experienced in guiding franchise owners and are available for a consultation to answer your questions.

Call (713)300-9662 to schedule a time to speak with an attorney about your concerns or to review a franchise agreement prior to taking the plunge.