Restaurant franchising also has big advantages when it comes to all the work involved in opening additional locations. For a non-franchised business, the long “to-do” list includes finding a suitable site, negotiating the lease, hiring an architect and contractor, recruiting and training staff, purchasing/leasing equipment and inventory. Therefore, the number of restaurants it is physically possible to open at any one time is restricted. Under the franchise system, much of this work is taken on by the franchisee, whilst still allowing the franchisor to have financial leverage and ultimate control.
So now we have seen the advantages of restaurant franchising, the big question is: can your restaurant be franchised? The answer is that almost any type of restaurant can be franchised, as long it is credible to prospective franchisees. This means that your business must be professionally designed, have something unique about it and also be capable of being cloned or “systemized”. The most important factor, however, is that your restaurant must provide a sufficient return to both you and your franchisees, which means it will be necessary to deduct a royalty. If your business currently receives a number of unsolicited franchise requests, then that is a pretty good measure of its “saleability”.
Thanks for coming up with such a great topic on business franchising. I think buying a franchise is really a great idea for those who want to increase their chances of being successful when starting a new business in the short term. As franchising has become popular all over the world, it also continues to be a successful business model for most new entrepreneurs.
I am still struggling with the idea of giving up my independence to a 3rd party. i am used to doing my own thing and am just not sure if franchising is for me. I will keep researching and listing up the pros and cons before i decide.
Carol
An important issue for you will be deciding between having total independence or giving up some of that for extra security. Its the nub of any consideration about what to invest your money in. If you have had business experience before than you may opt for the latter because you already know some fo whats involved but the franchise companies are always going to maximize their portrayal of your risk in order to get you to sign up. At the end of they day only you can decide.
What would make you sleep easier at night?
Or maybe you have room for some excitement and danger?
David
Well i started my own restaurant a few years ago without a franchise., I has some experience working for another person and though i could do it wiithout a franchise. You really need to be dedicated. I found some great ideas on the web that i could use in marketing. Things like building up your customers lists and how best to hit it
So far surviving!
If you spend a little time on the web you will find many good freebies on how to get started.They give a lot of good info in return for your email and i have been researching and gathering as much as as possible.
I like the tip about finding out other franchisees of a prospetive franchise and having a chat. In maybe 30 mins you get a really different view of the setup and it is always different from the blurb the company puts out
Errol
I’d like to set up a spreadheeet with the following in it.
1. the lsit of steps i need to take
Break it down into marketing
Who with, how much, over what period, targets i want to achieve
If i dont achieve them after the fixed period, drop them and move on
Research
Other franchisees to talk to
Steps in the financing
And do on
Just some thoughts
Donald
How about posting that spreadhseet? Then we could all add to it or make suggestions. I know it would be of great help to me if there was someone else i could share ideas with before i make the final committment to invest.
Andrea
I took out a book called Franchise Times by Julie Bennet. I was lucky enough to get it on amazon used books. It is absoulutely full of great ideas and tips about franchising and I recommend it to anyone seriously thinking of entering into a commitment.
ivan
When assessing restaurant franchises, one should concentrate on the traits of the business from a franchisee’s outlook to distinguish if this industry is the ideal one for you. There are few awesome benefits to having a restaurant business, but at the same time there are some competitions too that you need to be alert of before continuing in this kind of venture.