5 Valuable Tips on Franchising Your Restaurant Business

Are you willing to take the next level for your restaurant business by entering into the world of franchising? Being a highly lucrative practice of business expansion, franchising has been the ultimate choice of many restaurateurs in experiencing rapid growth. But what you must consider while thinking of franchising your restaurant business is to seek professionalised guidance of experienced consultants.

With experts to guide you, it will be beneficial for you to focus on ‘how do I franchise my business’ and follow the right strategy accordingly for deriving best results. Here are some of the most effective tips for franchising your existing restaurant business and experience rapid growth.

Evaluating the existing business

Before getting started, you must evaluate your business and try to figure out its level of scalability. Try to find out whether it can be well standardised of systematised. Maintaining the standards and consistency of your brand across all the franchise outlets is a tough job and hence it’s always better to ensure that these areas can be reproducible. You should also evaluate the cost structure which will include:

• Infrastructure development
• Initial setup expenditure
• Marketing plan
• Technology
• Equipment required
• Human resources

Getting your logo and trademark registered

It is important for you as a prospective franchisor to register your brand’s trademark and logo before franchising your restaurant business. This is necessary because to franchise, you need to give the right to franchisees for using your trademark and logo. Keeping this in mind, you must protect your intellectual property as well.

Estimating the costs required

It is important for you to prepare a detailed investment plan to list down all the set-up costs for franchising your restaurant. The best way to do is categories the various types of establishment costs under some broad categories. Here’s an overview of the same.

1.Infrastructure

• Rent for location
• Electrical and electronic settings
• Interiors including furniture

2.Branding

3.Licensing costs

4.Franchising fees including royalties

Preparing the franchise agreement

Once you’ve done with the evaluation process, it has become important for you to prepare the registered agreement between both the parties for protecting the rights between franchisees and franchisor. It should clear about the plan, payment, schedule, tenure, royalty and kind of support you should be offering to the franchisees as the franchisor.

Training the franchisees

Another significant tip to consider while franchising your business is to train all your franchisees about your business to maintain the standards or quality of your products and services. It is important for you as a franchisor to plan a well-structured training process for the entire staff as well as the franchisees for helping them to reproduce your business model in the best possible way. Having said that, it is also important for you to guide or update them about the different kinds of changes or advanced techniques being implemented for betterment of the business.

The bottom line

As an aspiring franchisor, you must seek expert help from leading consultants to know the ideal steps of ‘how do I franchise my business’. Doing so will make you well-learned and make the right decision as and when required in the due course of franchising your successful restaurant business model.