Are you thinking about franchising your restaurant? Do you think that your restaurant has what it takes to become the next big franchise? If this is something that you want, then this is what you need to know about restaurant franchising.
Franchise vs Chain
Before we go into detail about restaurant franchising, there is one thing that needs to be pointed out first. A lot of people aren’t sure what a franchise is and what a chain is. When we talk about a chain restaurant, there is one parent company that owns all business locations. However, if we talk about a franchised business concept, independent owners operate individual stores. This means that there is no central management actively involved with each and every store.
Is your restaurant successful?
Even though many argue that this is not a requirement, we believe that it is a very important factor when considering restaurant franchising. Since restaurant franchising includes working with different owners, by having a successful restaurant, you will have an excellent selling point – potential buyers want to see a restaurant that is already making enough money before franchising.
However, since you are thinking about restaurant franchising, this means that your restaurant is already successful, so let’s move on and give you the next important tip.
Do you have a business plan prepared?
A business plan is definitely the most important part of franchising. Just remember when you opened your restaurant – planning was crucial.
Your business plan about franchising has to offer value and it has to contain all the necessary information. You should include in your business plan how many franchises you plan on selling, the price range you intend on using and where you want the franchises to open. But bear in mind that you may need help from an attorney or lawyer to help you create a good business plan. This will be especially important if you intend on sharing this plan with potential buyers, because your plan will have everything that is necessary and it will be a lot easier to create contracts later on.
Have you registered your logo and trademark?
Now that you have your business plan, it is important to register your logo and trademark. Wonder why? Well, since you are planning to franchise your brand, it is necessary to protect your intellectual property. If you fail to do this, you can even get into trouble later on.
Another important reason why you should register your logo and trademark is because of your brand. Branding is very important in restaurant franchising. It will help potential buyers understand the vision and ideas behind your restaurant business – so invest in registering the restaurant’s logo and trademark.
Did you define the necessary rules?
Every successful and profitable franchise has to have ground rules. Customers have certain expectations – they want the food, service and atmosphere to be the same no matter which restaurant they visit from the same franchise.
In order to give customers exactly what they expect, you have to create a set of rules that will have to be followed. You can do this by creating some sort of rulebook, outlining the do’s and don’ts. However, bear in mind that this rulebook shouldn’t be too strict and it shouldn’t go into too much detail – try to keep it short and sweet – you don’t want to scare potential buyers straight away.
Restaurant franchising can definitely be the next big step for your restaurant. However, as a restaurant owner, you have to know that this is a completely different business when compared to just being an owner. There is a lot to learn, understand and do before you start on accomplishing your dream of having a successful restaurant franchise.
You need to create a business plan, then you need to register your logo and trademark and finally, prepare a rulebook for everyone who wants to buy your franchise. Only in this way will you make your franchises succeed. So, are you ready for restaurant franchising?
If you need any help with restaurant franchising, our team of experts at Orders2Me will gladly help you, so don’t hesitate to contact us today.