7 Tips for Franchising Your Restaurant Business

Is your restaurant business earning good profits? Are you thinking of expanding your business? Then, the best thing to do is to open up franchising opportunities for your restaurant business.

If you are okay with sharing your franchise brand with others, then franchising is the right option to start your restaurant in another area. 

Here are some important tips for franchising your restaurant business.

1: Restaurant Brand Evaluation is Important

Before starting to let your restaurant for franchising, you need to carry out an end-to-end evaluation, including operations, standards, scalability, consistency, equipment, technology, marketing plan, and more. 

2: Strong Operational Process

Once your evaluation process brings positive results, you need to think about establishing an efficient process to enforce business consistency across outlets.

This includes staff training, sales tracking and reporting, payouts, commission management, etc.

3: Logo & Trademark Registration is Necessary

It is advisable to register your logo and trademark when planning to franchise your brand. There are many restaurants that miss out on this initially and get into trouble later. 

In order to protect your Intellectual Property, every franchisor should register their logo.

4: Prepare Total Cost Estimation

You need to plan the total cost of the initial set-up. It must include all possible expenses such as infrastructure, franchise fee, licensing and establishment cost, and working capital for the first 6 months.

5: Build a Brand Profile

Your brand profile plays a major role when you want your franchisees to understand the vision behind your restaurant business.

The document should include your brand’s vision, detail about products and services, your training and support infrastructure, and so on. 

6: Draw Up a Franchise Agreement

There is no particular law with respect to restaurant franchising. So, it is important that both franchisor and franchisee agree upon a legal agreement.

The document must include a plan, payment, royalty, support, and schedule. Remember, without a legal agreement, it is difficult to take action even if you stop receiving royalty from your franchisees.

7: Define Your Support to the Franchisee

It is your responsibility as a franchisor to spell out what support you will be providing your franchisees after they start their restaurant business. It can include operations, training, marketing, advertising, technology, infrastructure, raw materials, etc.

Make sure you mention it in the franchise agreement as well, to avoid issues in the future. 

For more tips on franchising your restaurant business, Contact Us.