When aspiring restauranteurs imagine their first (or next) eatery, they usually have something specific in mind. More often than not, it isn’t a franchise. While many are quick to dismiss it, linking up with a franchisor can give you a pretty big advantage in what’s often a tough industry. But before you decide get the ball rolling, there are a few things you should be aware of.
If you’re considering buying a franchise, here’s what you should know…
The benefits
Let’s start with the reasons you should consider opening a franchise—and paying the initial fee to do so. First off, there’s the brand recognition you’ll enjoy. If you open a new branch of an already-successful restaurant, there’s no need to wait and pray that diners discover you. Instead, you’ll have loyal fans from day one.
Of course, that franchise fee pays for more than just a name. You’ll also get marketing support, help with employee training, well-established relationships with suppliers, and more. Put simply, being part of a tried-and-true business can be a winning proposition.
Location is key
Like any eatery, a franchise restaurant needs to be well located. That said, it’s not just about the amount of foot traffic you’ll receive, or whether the area you choose is home to your target demographic.
Does the franchisor need to sign off on the location you choose? Have they set down any specific layout or size requirements? And what about the building you have in mind—does it allow for the type of business you’re proposing? In some cases, the franchisor will help you find a suitable place and even negotiate for the right price.
The proximity policy
Another important consideration is how far you’ll be from other branches of the business. Franchisors don’t always grant exclusivity, which means the exact same eatery could, theoretically, open up nearby.
It goes without saying that you don’t want an identical restaurant eating into your profits. For this reason, it pays to look into proximity policies before making a decision.
Your responsibilities
When it comes to opening a restaurant, the to-do list is long. From obtaining liquor and food prep licenses to getting the right building-related permits to figuring out the rules around waste disposal, there’s no shortage of red tape.
Restauranteurs are usually responsible for all of the logistics involved in opening their business. One of the best things about being part of a franchise is having at least some of these crucial tasks taken care of. That said, it’s important to find out which obligations are yours and which are those of the franchisor.
The disclosure document
Last but not least, be sure to carefully review your disclosure document. This is where you’ll find everything you need to know to help you decide whether to invest. From the background of the business to the fees you’ll have to pay to any support that you’ll receive, the information in this document is crucial.
there’s no way around it: opening a restaurant is complicated and time-consuming. The good news is, choosing the model that’s right for you can help simplify the process and maximize your profits. If that’s a franchise, be sure to learn all that you can about the business you’re thinking of becoming a part of.
Looking for the perfect location for your franchise restaurant? Get in touch to learn how I can help you make the smartest purchase possible!
