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Answers to Common Questions about Restaurant Franchises

Restaurant franchises offer a unique opportunity to enter the world of business ownership with the promise of success. Whether you are a recent college graduate with limited experience who is eager to learn or an experienced professional looking to get into the industry, the right franchise can bring great rewards. As you consider this path, here is a compiled list of the most frequently asked questions to give you insight into this lucrative field.

What is the process of owning a restaurant franchise?

To own a restaurant franchise, you must first purchase the franchisor’s rights to use its trademarks, proprietary information or recipes. This purchase will grant you the right to open and operate the franchise in a particular location. Next, you will need to find a suitable location for the restaurant, and acquire the necessary permits and licenses. You will then need to secure financing to fund the restaurant opening, as well as build and design it. Finally, you will need to hire staff, purchase supplies and set up an operational system, before your franchise business is ready to open.

What are the advantages of owning a restaurant franchise?

The main advantage of investing in a restaurant franchise is the direct correlation with the franchisor’s already established and successful business model. This means fewer costly trial-and-error periods, and with any luck, a relatively faster time to profitability. Additionally, owing to the power of franchising and brand awareness, you are likely to have reduced marketing expenses, especially in comparison with a start-up. Furthermore, you will benefit from the franchisor’s experience and support, such as employee training, purchasing assistance, operational guidance, and other valuable resources.

What are the costs associated with buying a franchise?

The initial investment in a restaurant franchise can range from low to high depending on the franchise system you choose. While the franchise fee can range anywhere from $10,000 to $50,000, the other costs – such as pre-opening costs, facilities build-out costs and working capital – also must be taken into consideration. It is important to become familiar with all the expenses that will be involved before signing the franchise agreement.

Are the franchisors flexible with changes?

Generally speaking, most franchisors are willing to work with you in terms of changes that can help your restaurant become more successful and profitable. Again, this depends from franchisor to franchisor – some are strict with their rules and regulations while others will offer a more flexible approach. It is best to discuss your concerns with the franchisor prior to signing the franchise agreement.

What type of franchising opportunity should I look for?

The type of franchising opportunity you choose will largely depend on your goals, resources and the experience you have in this field. There are fast food franchises such as McDonald’s, casual dining concepts such as Friday’s, and even more niche concepts such as frozen yogurt stores or pizza delivery establishments. Before committing to a franchisor, make sure you research their system thoroughly, and assess whether this is a good fit for you.

What type of support will I get from the franchisor?

The type of support you will get from the franchisor will depend on the franchisor. Once you become a franchisee, the franchisor will typically provide pre-launch support, operational support, employee and customer service training, marketing assistance and much more. With support from the franchisor, you will be able to run your restaurant smoothly and ensure its success.

These are just some of the questions you may have when considering investing in a restaurant franchise. The International Franchise Professionals Group (IFPG) creates a platform for potential franchisees and franchisors to network and find the best fit for their business goals. Contact us today for a free evaluation of your franchising needs.

Topics:

Franchising,

Restaurants,

Investing

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