How to start a franchise restaurant?
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.
- Contact the Franchisor.
- Meet with the Franchisor.
- Agree to a Contract.
- Secure Funding.
How to buy a restaurant franchise?
Part 1 Part 1 of 2: Making the Decision to Buy a Franchise
- Weigh the advantages of owning a franchise. There are certain benefits that come with franchise ownership that can't be had by starting a business from scratch.
- Examine the disadvantages of franchises. The unique set of challenges faced when owning a franchise makes this business venture simply not doable for some people.
- Evaluate your situation. ...
What are the different types of restaurant franchise?
These include the following three categories:
- Food Franchises These tend to be the most visible of all franchises, and remain an ever-popular choice for today’s prospective franchise owners. ...
- Retail Franchises A retail franchise does not usually involve as long hours as food franchising, and the wide variety of functions makes it suitable to a family business where ...
- Automotive Franchises
Can I franchise my Restaurant?
Criteria to Franchise a Restaurant. Most restaurants can franchise providing they meet three basic criteria: – Salability: Your restaurant must be credible to prospects in order to sell franchises: professionally designed, unique in some way, and most importantly it must have “sizzle”.
What is a franchise restaurant?
The Definition of a Franchise Restaurant. A restaurant franchise is a brand which an investor, or franchisee, has bought the right to use. The franchisee is responsible for the day-to-day running and management of the restaurant. In return, the company granting the license, or franchisor, offers support, marketing and a proven restaurant concept.
Who decides the menu and recipes for a franchise?
The corporate owner decides the menu and recipes and often must approve food vendors to ensure that a dish served at one location tastes the same as it does at all of the other locations. In some cases the franchisor requires the use of proprietary products.
What is a franchise fee?
This franchise fee can be minimal for newer, growing franchises with few locations and a less proven concept or can be in the millions for large, established franchises that may require an investor to commit to multiple locations. In addition, the franchisee is responsible for the costs of maintaining the restaurant and may need to sign agreements requiring future renovations or updates.
Why is franchise attractive?
A franchise can be attractive to franchisees because it offers a support system that isn’t available when starting a restaurant from scratch. Many franchises offer in-house loans, training programs and support for everything from community engagement to technology and equipment failure.
Restaurants fall into three broad categories: independents, chains and franchises
A restaurant becomes a franchise when its owners decide to license their branding and operational model to other entrepreneurs, who open, own and manage their own restaurants with the brand.
By Alex Lockie
A restaurant becomes a franchise when its owners decide to license their branding and operational model to other entrepreneurs, who open, own and manage their own restaurants with the brand.
What is Restaurant Franchising?
A franchise in simple terms is a brand that an investor (Franchisee) has bought the right to use. The brand is established by the parent restaurant, the operations and running of the restaurants is fixed by the Franchisor (Parent restaurant), and the Franchisee simply uses the brand name to earn a profit. While the Franchisee runs the day to day operations, the bigger decisions like the method of training, location and the kind of technology to use are up to the Franchisor. It is a contractual relationship with pre-defined norms and authority structures which define how the franchise is run. There are many franchise models that you can choose to go ahead with.
How does franchising help a restaurant?
Restaurant franchising is considered to be the easiest way of scaling your brand if you want to do it quickly. Franchising allows you to take multiple locations at once because not all resources being exhausted are your own. This creates your restaurant presence in multiple cities and even in various areas of the same city. Greater visibility and broader reach enhance the brand presence is not just a physical space but the minds of your target audience as well. The fact that the restaurant name and brand will be familiar to your target audience will create an influx of sales. Not only will franchising help you reach your potential customers faster and in a more cost-effective way, but also create your presence in their minds increasing their loyalty towards your outlet.
What does it mean to be a franchisee?
Franchisees are not just people working for you but contractual business partners in their own right. By taking a franchise, they enter a contract of limited ownership of your brand. This means that they will treat the restaurant as their own, given that they are investors in it. Thus, a greater commitment and loyalty towards the Franchisor restaurant is established. The sense of ownership and desire for well being of the restaurant is higher in the franchise owner as compared to a manager that you would have hired had you not chosen to expand through franchising.
What is the responsibility of a franchisee?
While the responsibility for day-to-day operations is significantly decreased in a franchise model, back-end responsibility stays the same. As a Franchisor, you will still have to give the Franchisee full technological support. The responsibility of constructing the restaurant, choosing the location, providing machinery, devising marketing plans, designing the menu, etc. will all be under the umbrella of your duties. When the store is company-owned, you have both an inside view of operations and a vantage view, but in a franchise model, some inside view is blocked, making your job just as difficult. Moreover, your brand consistency is to an extent based on these back-end operations which makes managing these just as tricky.
Why is franchising important?
Restaurant franchising saves the Franchisor an otherwise massive amount of capital investment required for setting up an outlet. If a restaurant decides to not a franchise, the capital investment made would not only include all the fixed costs and operational costs until break even but also increase the risk.
What is franchisee relationship?
It is a contractual relationship with pre-defined norms and authority structures which define how the franchise is run.
Why is it important to expand a restaurant?
Expansions in the restaurant industry are essential as well as risky because restaurants run on the consistency of their food and service. If the food at one outlet is very different from the other, it will create a distrust and confusion in the minds of the customer and you will lose out on not just sales but the customers themselves. When expansions happen through company-owned stores, this problem does not arise, but in a franchise model, it is very easy to lose the consistency of the product and/or service leading to a loss of customers and a dilution of your brand.
Who is responsible for franchise fees?
Keep in mind that franchisees are responsible for additional franchise fees on top of the initial franchise cost. For a full breakdown of franchise fees, you can refer directly to the information available on the franchisor’s website.
What are the criteria for KFC franchise?
The six major factors KFC evaluates in their franchise applicants include “multi-unit operations experience, financial qualifications, personal and financial reputation, motivation and commitment, culture and brand fit and growth mindset, ” among other factors. KFC has among the more rigorous financial qualifications, too: At a minimum, applicants need a net worth of $1.5 million and $750,000 in liquid assets, though these requirements will vary (i.e. be higher) depending on your ownership level.
How much money do you need to own a Pizza Hut?
(Another fun fact? The very first product ever ordered online was a Pizza Hut pizza.) At a minimum, prospective Pizza Hut franchisees need to have $700,000 in net worth, $350,000 in liquid assets and a strong credit report. Applicants will also need to present Pizza Hut with a financial plan detailing how they’ll grow their location.
Do you need to meet the minimum requirements to buy a Baskin Robbins franchise?
If you’re interested in buying a Baskin-Robbins franchise, you’ll need to meet their minimum requirements. Financial requirements vary according to your location and the type of Baskin-Robbins store you’re interested in buying (either a traditional storefront or a non-traditional location, like a kiosk).
Is Ben and Jerry's a philanthropic franchise?
Other than being the mastermind behind such beloved ice cream flavors as Cherry Garcia and Phish Food, Ben & Jerry’s is one of the most philanthropic franchises in the country. Their Ben & Jerry’s Foundation, for instance, is an employee-led organization that aims to engage in local community work and support grassroots social justice organizations and movements. Buying a Ben & Jerry’s franchise is a unique opportunity for similarly aligned business owners to flex both their entrepreneurial skills and their passion for social justice.
Is McDonald's the most popular fast food restaurant in the world?
We don’t have to tell you that McDonald’s is the most popular fast-food restaurant in the world — so if you’re interested in buying a fast-food franchise, it makes sense to set your sights here. About 90% of McDonald ’s in the U.S. are owned and operated by franchisees; and, according to the company, McDonald ’s has the largest number of women and minority franchise owners in the fast-food industry.
Who owns Denny's fast casual?
They have amazing opportunities for franchise owners, too—in fact, one of their most successful owners, Dawn Lafreeda, started out as a server at the restaurant.