Multi-Unit Franchise Experts

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Restaurant Franchises

As a career changer, investing in a restaurant franchise can be an exciting and profitable way to break into the food industry. Understanding the questions you may have and the answers that come along with them is key to making an informed and wise decision. The International Franchise Professionals Group (IFPG) created this guide to Support aspiring business owners in the restaurant franchise space.

These Frequently Asked Questions (FAQs) will cover topics ranging from general information about the restaurant franchise process and the different franchise types available to what sets restaurant franchises apart from other businesses and the questions you should be asking to make sure you’re investing in a successful venture.

Before investing in a restaurant franchise, it is important to consider the considerable financial commitments involved. Knowing the timeframe for return on investment (ROI) is essential to setting realistic expectations for your business. Additionally, facts about the industry and its trends will help you figure out which franchise works best for you in the long-term.

What Is a Restaurant Franchise?

A restaurant franchise is a business opportunity in which a franchisor – typically an established chain restaurant – allows individuals, or franchisees, to open and operate restaurants that are identical in appearance, menu and customer service to the franchisor’s own.

Are Restaurants Harder to Franchise Than Other Businesses?

No. All businesses require the same level of paperwork and legalese to establish a formal franchise arrangement. But, because restaurants are service-oriented businesses, there may be additional requirements to officiate the restaurant franchise agreement.

What Types of Franchises Are Available?

The type of restaurant franchise you select will depend on your investment amount, experience in the restaurant industry, customer service skills and commitment to the franchisor’s brand. Additionally, the franchisor may have requirements for accepted franchisees. Restaurant franchise types include:

• Fast-food franchises: offers quick-service and friendly customer service

• Quick-service franchises: specializes in counter service and speed

• Casual dining franchises: offers table service in an inviting, yet cozy atmosphere

• Coffeehouse: a unique yet relaxing place to meet

• Upscale dining franchises: signature menus from upscale steakhouses and seafood restaurants

• International franchises: franchising established by other countries’ restaurant chains

• Home-based franchises: restaurant franchises where the franchisor supplies all the equipment needed to prepare meals and cook

What Sets Restaurant Franchises Apart From Other Businesses?

There are several elements that set restaurant franchises apart from other businesses. Restaurant franchises must conform to the franchisor’s brand standards, recipes and menu items, while also meeting OSHA, health and local codes. You must be competent and confident in customer service so that the overall atmosphere of the restaurant is inviting and welcoming. Additionally, the expectations of the customer factor into a restaurant franchise’s success. If customers are not impressed with the food or service, they may not return.

What Questions Should I Ask Before Investing in a Restaurant Franchise?

Before investing in a restaurant franchise, ask yourself questions such as:

• Is the concept of a franchise rewarding to you?

• Are you comfortable investing in an industry you are unfamiliar with?

• Do you have a budget to cover the initial franchise fee and ongoing fees for operating and training?

• Are you aware of the regional market demands and restaurant trends?

• Do you have reliable employees in place?

• Do you have the marketing skills to promote your restaurant and attraction new customers?

These questions will give you a better understanding of the opportunities and challenges you may face.

What Can I Expect From the Return on Investment (ROI)?

ROI varies based on the cost of opening the restaurant and the industry trends. When investing in a restaurant franchise, it is important to consider the financial commitment. Most franchisors offer estimated ROI figures and timelines, but you should perform your own research and analysis to develop an accurate ROI timeline.

Finally, it is important to understand the current public health regulations that can affect your restaurant franchise. Knowing the regulations and laws in your area of operation will ensure compliance and profitable operation.


Restaurant Franchise,

Investing in Franchises,

Franchise Agreement

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