So, you’ve built a restaurant that’s doing well, and now you’re thinking, “How do I franchise your restaurant?” It is like a dream to watch your brand in other cities, even other states. However, franchising does not only consist of erecting more outlets. It is a big step, and it is not as easy as it may appear. We will divide it step by step.
To start with, you should ensure your restaurant is in a position to be franchised. Many individuals are jumping into franchising without posing the difficult questions. Does your business work well without you? In case the answer to this is not quite, there is work to be done. Your operations should be repeatable. All the operations, such as the food preparation and welcome of the customers, inventory, etc., should be transparent and uncomplicated. When your flagship store is in madhouse at the time of lunch rush, you cannot replicate the same format in a new city.
Now you have tight systems, which you need to work out legal side. Franchising is not all free and clear. It’s a contract. You are providing a right to other people to use your brand, and this is paperwork, agreements, and contracts. A Franchise Disclosure Document (FDD) will be required to give the prospective franchisees a roadmap. It is critical towards establishing clear expectations on either side. Consider such issues as charges, working policies, and copyright. Hire a franchise law attorney. These steps can not be ignored, as it safeguards you and your franchisees.
Training is another big one. Do not think that you will give them the keys and wish them the best. The franchisees must understand how to operate the restaurant and that is to create a strong training program. A manual alone won’t cut it. Consistency will be out of the window in case your franchisees are left to figure things out. You will have to train them well, how to prepare your dishes, how to handle staff, how to handle customers and how to handle business. The more specific you can be the more certain your franchisees will be and the more apt they will be to adhere to your successful formula.
Talking about franchisees, it is very essential to find the right ones. The fact that a person had money to purchase a franchise does not imply that he or she is the right candidate. You desire franchisees that are financially viable and also appreciate your brand and vision. The appropriate franchisee is not an investor but a partner. Find individuals who want to succeed and individuals who are determined to uphold the integrity of your brand. Restaurant ownership is no piece of cake- should they be doing it to get easy money, they will not last long before they burn out.
Marketing your franchise is not the same as marketing your restaurant. You are not doing it to attract customers, but potential franchisees. Such individuals would like to be assured that they are investing in something that has a record of success. Disclose the success of your restaurant, customer loyalty and profitability. Assuming that you have information to support your arguments, then go ahead. Demonstrate to show franchisees that your business model is effective. The better evidence you can present the stronger will be their belief in signing on.
Franchising your restaurant does not happen easily. It is a long term play and it needs a lot of planning, patience and persistence. However, when you have a good system, the appropriate franchisees, and an excellent marketing plan available, your brand might expand way past the scope of your expectations. It is a tedious task, and yet a tedious one that with proper handling can pay off in huge proportions. Are you willing to go to the next level with your restaurant? Get into business–franchising might be the step of your life.