The decision to begin franchising a new business can have your head spinning with the number of options available on the table. The different industries, the choices between companies, the cost; it’s all pretty overwhelming.
But the good news is, it doesn’t have to be.
You can make a well thought out decision based on facts and your personal values. But first, let’s get things narrowed down to the industry and company. At the top of our list, today we have the food industry. And why wouldn’t it be? Everyone loves food, right? Especially comfort food.
Comfort food can fall into many categories, but today let’s go over the delicious fish and chips.
- Salt Fish & Chips to be exact.
High-quality, great-tasting, quick-serve fish and chips from an old-fashioned restaurant that lives to serve customers with only the best. Adults, children, and families all over are falling in love with this establishment, and it’s no wonder as to why.
This non-greasy, quick and easy food service has hearts throbbing everywhere. Ok maybe not heart-throbbing, but most definitely tummy-rumbling.
This franchise is the perfect opportunity for those that have a passion for serving high-quality fast service food. Also for those that are tired of dealing with fish and chip joints that under deliver.
So if that sounds right up your alley, then let’s get started on the nitty-gritty details.
About H. Salt Fish & Chips
It all started back in 1965 when Salt’s Fish & Chips first opened up shop in California. Haddon Salt followed in his father’s footsteps and followed his heart and passion for good tasting fish.
When Haddon realized there were too many fish and chip joints serving up greasy and undesirable foods, he quickly came to the rescue.
His love for fish became this expanding restaurant chain.
Haddon Salt trained everyone who wanted to be a part of this business, including aspiring owners, how to properly prepare and cook the fish to perfection. With the growing interest from potential new owners, it became apparent that there was room for growth. Soon enough, the franchise opportunity was born.
Salt’s Fish & Chips soon renamed to become more welcoming and fresh. This company now goes by H. Salt Fish & Chips Esq. The place where you can be sure to find authentic American Fish and Chips.
It’s tradition and authenticity that brought this restaurant together. And it’s what’s been keeping it together for over 50 years.
With the help of expanding locations from franchise owners, as well, of course.
So when you think of fish and chips, does it excite you? Does it make you want to tear into a plate and fill your rumbling tummy? Or does it maybe even frustrate you, thinking about the fact that there are no decent establishments near you serving up quality fish and chips?
If you answered yes to any of those above questions, then there’s a possibility that H. Salt’s is the right franchise for you. If you have a passion for traditional fish and chips, then check out the details and see what this company has to offer for a franchise business.
Details on Franchising
Considering the growth of a franchise is one of the main factors to look into when figuring out all of the details on a business. And with H. Salt Fish & Chips, I’ve got to say, they haven’t experienced much of it over the past few years.
In 2010, this company only had a total of 24 franchises operating. Which, yes, it’s low; however, you have to take into consideration the type of industry that it is. But then, what worries me, is the fact that by the end of 2012 (just two years later), the number of outlets lowered to 22 operating locations by franchise owners.
Even with this industry for fish and chips not being too extreme, I wouldn’t consider that to be a good enough reason for the growth to be on a decline. And what’s even more worrying is the turnover rate.
Since the turnover rate is calculated using the total number of terminations, ceases of operations, transfers, and other cancelations, it makes me wonder why this turnover rate is so high.
Could it be because not enough franchise owners were seeing much profit? Or maybe they didn’t like what the company had to offer? Or perhaps this number could just be high because people chose to not renew their agreement after the 10 years were up.
Either way, it’s best to find out from the company itself why this turnover rate is near the risky level.
It doesn’t help that the company chooses not to provide any financing, refunds or territory rights. Not many entrepreneurs like that idea. Also, it doesn’t seem as if they offer any type of financial transparency with their franchise owners. So this could be another indicator as to why that growth isn’t increasing.
While it’s a fantastic establishment built on tradition and authenticity, the franchise opportunity just may not be as fantastic.
Pay up
It’s time to talk money. After all, money talks, right?
With H. Salt Fish & Chips, it’s actually one of the lower priced franchises in this industry. For the initial franchise fee, you’ll only be paying $9,000. And the total investment is even on the lower side between $84,000 and $100,000.
So, I wouldn’t say that the cost could be the issue for the decrease in growth.
Although, their ongoing advertising fees are a bit high at 4%. However, the royalty fee is more average at 5%. These fees are required and ongoing for your entire agreement. But remember, should you choose to terminate that agreement, you won’t receive any refunds under any circumstances. So keep that in mind.
Keeping the Tradition Alive
Mr. Salt was all about keeping the tradition alive and providing authentic American fish and chips to the community. And the concept is great. Especially since he chose to keep his food prepared in a way that it would remain non-greasy.
And in the beginning, everyone else loved this concept as well and was quick to hop on board with the opportunity.
These days, it doesn’t seem to hold up to that pattern anymore. There is a very noticeable decrease in the number of operating franchise outlets, even though the opportunity and concept seem pretty legitimate.
If you are still interested in keeping the tradition alive through franchising H. Salt Fish & Chips, then your next move would be to gather up as many questions as you can, contact the company and request answers for your inquiries.
Overall, while this opportunity seems to be falling slightly, there does seem to be some potential. If it’s something that holds value in your heart and the company gives you the answers you need, then go for it and keep this tradition going!