How To Start A Franchise Business
Jun 16, 2023
Starting a franchise restaurant can require just as much effort as starting your very own restaurant. A successful franchise business makes for an attractive option as it is a model that operates on set operations guidelines, training procedures, menu and so on. However, franchisees would have to pay a portion of their profits to the franchisor.
Here’s the quick breakdown of the pros and cons when starting a franchise business.
Access to existing, trusted vendors
Built-in brand awareness and customer base
Logo, branding, and style already set
Higher start-ups costs
Less freedom to innovate
Abide to set guidelines and standards
The processes of starting a franchise business may differ from countries to countries, but here is a rough guide of starting a franchise in 8 steps.
Take your time to research and find franchise opportunities. When picking a franchise opportunity, these are the key points to keep in mind:
Before starting a franchise business, it’s best to ensure that one doesn’t already exist in the area. You would want to make sure that you’re not setting up a competitive location that could underperform.
In addition to regular business costs such as rent and maintenance, you need to factor in a yearly royalty to the franchisor. Other costs include travel costs
Draft a business plan
When making a business plan, you need to outline why you would be a strong steward of the business. Ultimately, you would want to explain how well you would be the best person to understand the community you wish to serve with your location.
Get the franchise license agreement
Before signing the license agreement, make sure to review it carefully and understand all the terms stated in the contract.
Form a business entity
The next step is setting up a corporation or business license for your restaurant.
Choose your location
It’s time to finalise on the location of the restaurant. There could be certain requirements that your restaurant needed to fulfil.
Now you can start looking for employees. Franchise owners might have an internal job posting system, in case there are employees at other franchise locations looking to relocate.