How to Open a Franchise Restaurant in 10 Easy Steps
- Research Research is the foundation upon all the rest of the franchise-opening process is built. Conducting extensive research is vital to ensuring you choose the right restaurant to open and the right place to open it in. ...
- Contact the Franchisor ...
- Meet with the Franchisor ...
- Agree to a Contract ...
- Secure Funding ...
- Take Training on How to Open a Franchise ...
- Find a Great Location ...
- Prepare Your Restaurant ...
Full Answer
How to start a franchise restaurant business?
- Franchise Disclosure Document (FDD) Development;
- Operations Manual Development;
- Protecting your Intellectual property;
- Establishing your new franchising company;
- Issue and Register your FDD;
- Developing a Sales Strategy; and
- Develop a Franchise Plan and Budget.
What are the steps to open a franchise?
Steps to Open a Franchise
- Choose a franchise. This is arguably the most important step. ...
- Connect with the franchisor. Reach out to the company (there is likely a form, like this one ), to get more information about the company. ...
- Choose a location. What area will your franchise location serve? ...
- Create a business plan. ...
- Open your business. ...
How much does it cost to start a food franchise?
How Much For A Restaurant Franchise? It costs on average $275,000 to open a restaurant, or $3,046 per seat in a leased facility. You could buy the building for $425,000 or $3,734 per seat if you so desire. To make your dream come true, it is imperative that you consider all the costs of starting a restaurant.
How to make your own franchise in 5 steps?
- Set Realistic Goals. Franchising is more of a marathon than a sprint. ...
- Research Your Competitors. ...
- Develop Your Franchise Offering for Both Individual and Multi-Unit Sales. ...
- Make Sure Your FDD Is Compliant for Every State. ...
- Learn Franchising and Get Involved in the Franchise Community. ...
What are the benefits of opening a franchise restaurant?
One of the big benefits of opening a franchise restaurant is the pre-established power of the brand.
How to finalize a franchise agreement?
To finalize your franchise agreement, you must go through a franchisee training program provided by the franchisor. In this program, you’ll learn what you need to know about owning a restaurant, and specifically about that brand of restaurant. You’ll learn things such as: Recipes and the menu.
What is the purpose of a franchise discovery day?
The franchisor will host what is known as “Discovery Day.” This is a time where the potential owner visits the corporate offices, meets with company employees and other franchise owners, and generally gets to learn more about the business.
What is franchise contract?
This contract gives you legal rights to use the franchiser brand while laying out rules you must follow and standards you must uphold to retain those rights. Due to the complexity of these contracts, it’s smart to consult a lawyer with experience with franchise agreements.
Why is location important in restaurant?
You need to find a place with a high population of potential customers, but with minimal competition. You also need to be careful to not establish a franchise too close to another franchise of the same company.
Why is opening day important?
The publicity and excitement of the opening ceremonies will help drive your franchise to success in the future.
Why is research important in franchises?
Conducting extensive research is vital to ensuring you choose the right restaurant to open and the right place to open it in. Much of your research is about finding the right fit for you.
What about franchising your restaurant?
The third option noted above — growth via franchising — offers the benefits of starting with a successful brand and reputation while avoiding the heavy financial cost and effort required to expand on your own:
What was the secret to the success of the original McDonald's restaurant?
Let’s look again at Ray Kroc and McDonald’s: The secret to the success of the original McDonald’s restaurant was an assembly line-style food preparation system (which the McDonald brothers called the “Speedee Service System”).
What was Kroc's strategy after McDonald's?
Kroc’s entire strategy was about the systems and their ability to create consistency in quality, taste, and price.
Is franchising a good idea?
The franchise model has proven highly effective for many growing restaurants. The beauty of the arrangement is that other entrepreneurs (your franchisees) will be shouldering the bulk of the investment in terms of money and labor, while you’re only responsible for providing support and direction, and earning a healthy passive income through franchising fees in the process.
Can franchise owners help restaurants expand?
If you’re able to provide similar training and support for franchise owners interested in helping your restaurant expand, you can expect growth similar to the international fast food giant.
Is independent restaurant business viable?
The fact that many independent operators are successfully staying in business in the market proves it’s a viable business opportunity with a significant supply of willing customers. In nearly every population center in the country, all restaurants operate in this kind of optimally competitive atmosphere.
Is it easy to start a restaurant?
Life may have changed dramatically since you opened your existing restaurant, and it may not be easy or even possible to repeat those efforts at this point.