Franchises provide jobs for 9.1 million Americans. This well-established business model gives countless people the chance to own their own business.
If you’re thinking about opening your own franchise, restaurants are a great option. But before you get started, you need to know how to franchise a restaurant.
Follow this guide and set yourself up for success.
Do Your Research
Before you do anything, you need to know what you’re getting yourself into. Learn about what’s required to open and run a franchise. Then research different opportunities and learn about other’s experiences.
When choosing the right franchise opportunity, consider your personal preferences, costs, and the rules/guidelines you’ll have to live by.
Attend a Discovery Day
Take advantage of an invite to discovery day. This is your chance to learn everything you can from the franchisor. The franchisor will tell you about the company’s values and culture.
This is also when they’ll decide if they want to work with you. The franchisor will look through your qualifications to determine if you’re a good fit.
Read the Agreement
If you get the green light on discovery day, you will get sent a contract. You need to read this franchise agreement carefully. It can help to search “contract lawyer near me” to find someone to help you decipher it all.
Learn all of the restrictions and rules that you’ll need to abide by. These can apply to several different areas of the business.
- Transfer Ownership
- Territory protection
- Royalty fees
- Hiring of staff
Before you sign on the dotted line, you need to make sure you can fulfill your side of the contract. This means finding funding for all of the costs associated with opening your franchise.
There are several funding options you can consider. There are SBA loans, traditional bank loans, and franchisor financing. Then there are also some alternative funding sources such as crowdfunding, microloans, or an angel investor.
Make sure you set up financial accounts that are for your franchise. You need to keep your business funds totally separate from your personal finances.
Choose a Location
Once you have everything in place, it’s time to sign the agreement and find the ideal location. Your franchisor should assist you in finding the right location. They’ll give you an analysis of the region and recommend what data factors you should look for.
Keep in mind that many franchisors have restrictions such as minimum square footage, parking spots, and territory requirements.
Take Franchisor Training
If your franchisor offers training programs, take them. These programs will teach you everything you need to know about the products and services. They will also teach you about running your new business.
- Drafting reports
- Obtaining permits
- Managing employees
- Negotiating with suppliers
You Now Know How to Franchise a Restaurant
By following these steps, you’ll know how to franchise a restaurant. It’s important to follow these steps to ensure you go into your new venture fully prepared.
When you put in the prep work, you’ll find the ideal franchisor to work with and know what’s expected of you.
Check out our business section for more helpful articles to help you be a success.