Why should you open a franchise in Rhode Island? If you franchise, you get a head start on marketing by aligning with a proven winner. And, by locating your franchise in Rhode Island, you will experience the expected hometown appeal of a colonial historic district that is actually still growing exponentially to this day. So why not get started right away? Here’s what you need to know:
Rhode Island’s Best Cities to Open a Business
Providence is the capital of Rhode Island as well as its largest city. It is the third largest city in New England after Worcester and Boston, and is currently one of the oldest in nation. Situated at the mouth of the Providence River and the head of Narragansett Bay, Providence has been branded as the “Creative Capital” since 2009, and it is home to the esteemed Ivy League college, Brown University.
Providence is a wonderful city well-known for its love of coffee and good food. As a matter of fact, it has been said to have the largest number of both coffee shops and restaurants per capita of any American city.
Warwick is the second largest city in Rhode Island and it is located in Kent County. The home of T. F. Green Airport, one of the largest in the state, has been a witness to many major events throughout the course of American history. It is the location of several historic attractions such as the Aspray Boathouse, which is now used as a community center and meeting house, The Bank Cafe, formerly the first bank in the area, built in 1815, and the Drum Rock, which creates a booming drum sound when struck. Residents tell the legend of how Native Americans used the drum rock to send messages.
Cranston, once known as Pawtuxet, is a city in Providence County. In 2006, it was named as one the “100 Best Places to Live” by Money magazine, and ranked 36th on the 24/7 Wall St website’s survey of “America’s 50 Best Cities to Live”. Home of charming neighborhoods such as Woodridge, Apple Hill Estates, Garden City, and Meshanticut, Cranston is an old-fashioned shore town with big city opportunities.
Best Types of Franchises to Own In Rhode Island
Anchor Bar, also known as the “home of the original wing,” is opening locations up and down the Northeastern area of the United States. The sportsbar, which created the original buffalo wing in 1964, serves over 70,000 lbs. Of chicken monthly and sells their bottled chicken wing sauce in over 5,000 supermarkets worldwide.
Anchor Bar originated in Buffalo, New York. The then-owner, Teressa Bellissimo created Buffalo wings when she deep-fried the chicken parts and covered them in a combination of butter and Red Hot sauce. They borrow their moniker from the city in which they were created.
Opening a franchise is simple, but first you must meet the company’s requirements. First, you will need to own or lease a retail space of at least 4,500 to 6,000 feet. It is up to you to decide whether you would like to open a traditional location, or one located in a mall or airport. You will likely be able to open multiple locations if you qualify, and will be assigned a protected territory.
The company is willing to provide extensive training and ongoing support. You will receive site selection support from a national commercial broker, lease negotiation support, and an on-call marketing and real estate team to answer any questions you may have. You will also receive a detailed recipe manual and a uniform operations manual.
Potential franchisees are required to have liquid assets of $350,000. A franchise fee of $30,000 is required, as well as a ten year contract.
Bruster’s Ice Cream is also looking to break into the Rhode Island market. It is a well-recognized brand east of the Mississippi River. Founded in 1989 and franchising since 1993, the Bridgewater, Pennsylvania ice cream parlor is now headed by CEO Jim Sahene.
Bruster’s Ice Cream was started by Bruce Reed, who opened his first store next door to his parents’ family diner, Jerry’s Curb Service. Bruce worked in the diner as a child and dreamed of opening his own enterprise. Since 1993, the creamery has spread healthily throughout the south and the northeastern United States. In addition to ice cream, it offers sorbet, sherbet, Italian ice, and frozen yogurt.
Franchisees are required to undergo 10 days of training at the company’s headquarters and 7 days of training on site. There is comprehensive ongoing support provided, including meetings, newsletters, and a toll-free line. Field operations experts will assist you with your grand opening and internet presence. Marketing support is also provided in the form of ad slicks, co-op advertising, and national media campaigns. Purchasing co-ops are also available.
Franchisees must have a minimum of $80,000 – $200,000 in liquid cash assets. The initial fees include the $30,000 franchise fee and the ongoing 5% royalty fee. There is also an ad royalty fee of 3%. Bruster’s offers financing provided through third party sources to cover start-up costs, inventory, equipment, the franchise fee, and payroll expenses.
Unique Rhode Island Franchise Laws
Rhode Island is what is referred to as a franchise registration state. This means all franchisers that are planning on selling franchise locations within the state are required to register with the Rhode Island Department of Business Regulation, Securities Division, first. They must fill out a Franchise Disclosure Document (FDD) which must be approved before sales can take place. All registrations are to be renewed no less than 30 days prior to expiration.
It is crucial that any business that you are looking into purchasing a franchise from has all their paperwork filed properly and timely and all the applicable fees paid. The very idea of the franchise’s ability to conduct business within the state of Rhode Island can be threatened if they are not complying with these laws. Therefore, as an extension of their brand, your business will be directly affected, so be sure to do your homework before purchasing.
In conclusion, franchising is a great option for entrepreneurs that offers you the unique benefit of opening their own businesses with established names, beneficial partnerships, and intensive training. Not to mention, Rhode island is a beautiful, historic, and picturesque state in which to grow your company.