There are many ice cream franchises, gelato franchises and smoothie franchises. Entrepreneurs often wonder if they should buy a franchise or open a new business on their own.
Generally speaking buying a franchise costs more than opening your own business. Cost aside, however, there are pros and cons to each that must be considered. Gelato Pro Consulting can assist you in making the decision and then moving forward with that decision.
Franchise |
New Business | |
| Lower Start Up Costs | x |
X |
| Brand Recognition | X |
x |
| Flexibility | x | X |
| Pre-Opening Support | X |
x |
| Post-Opening Support | X |
x |
Now compare the above chart between opening a franchise and opening a new business with Gelato Pro Consulting services.
Franchise |
New Business | |
| Lower Start Up Costs | x | X |
| Brand Recognition | X |
x |
| Flexibility | x | X |
| Pre-Opening Support | x | X |
| Post-Opening Support | x | X |
The above chart is based on average start up costs and individual businesses will vary. It is also important to remember that franchise agreements generally are for a specific period of time and require renewal. You will need to pay annual franchise fees for ongoing support, these fees can be upwards of $10,000.
Lower Start Up Costs
Many business owners are surprised to learn that it can cost less to open an ice cream shop or gelato shop on their own rather than purchasing a franchise. The minimum investment you can expect in any of the popular ice cream franchises is $300,000. You then are obligated to pay most of your revenue towards buying your supplies from the suppliers dictated by the franchise.
Gelato Pro Consulting has in depth knowledge of the industry that helps us negotiate the best possible prices on everything from your location to your equipment, from your supplies to your advertising. We work hard to get you the best possible prices to minimize your start up costs and maximize your marketing and advertising budget to create your own brand recognition.
Brand Recognition
Brand recognition is important. Buying a franchise gives you instant brand recognition. If you open your own business you will need to create your own brand identity. Marketing and advertising are the key ways to create brand recognition in your market area. Gelato Pro Consulting has a partnership with White Hat Marketing to help provide you with the marketing and advertising support needed to create brand recognition.
Flexibility
Franchises are very strict with hours of operations, uniforms, suppliers and products. You have little or no flexibility when you purchase a franchise. You will be obligated to buy supplies from specific vendors with little or no negotiating.
Franchises also dictate what you can sell. Many businesses find that a gelato shop or an ice cream shop paired with other products like coffee, tea, muffins and desserts are more profitable than a shop that sells only one product. Franchises do not give you this option, opening your own business does.
You have complete flexibility when you open your own shop. Gelato Pro Consulting can help you find the right formula to maximize your profits.
Pre & Post Opening Support
Franchises offer some degree of pre-opening and post-opening support to help the new owner succeed. Gelato Pro Consulting offers much more in depth support including 3 - 4 weeks of onsite training and support once your shop opens. We provide hands-on support to assist you in getting your operations working at peak performance.
Risk Assessment
Gelato Pro will help you identify potential risks and minimize them where feasible. By assisting you with choosing the right location, vendors/suppliers and marketing plan Gelato Pro can significantly reduce your risks in opening a new business.
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