There are many reasons to franchise your business, but franchising is an especially smart choice for many restaurant owners. Food and beverage franchises are very common, and for good reason. Read on to learn what it takes to transform your restaurant into a successful food franchise.
In order to make a good franchise, your restaurant needs to offer a product that can be consistently duplicated in order to provide customers with a reliable dining experience. If the success of your restaurant rests solely on the skill and creativity of one chef, it is going to be harder to duplicate that experience than it would be for a restaurant with a small, high-quality menu and detailed company standards that ensure competent cooks can put out a product you’ll be proud to have your company’s name on. Creating a detailed Franchise Operations Manual is key to ensuring consistency throughout your restaurant franchises.
When it comes to successful franchise development, you must always consider the ROI (return on investment) for your franchisees. In order to keep selling franchises and making licensing fees from them, you will need to provide a franchise opportunity that allows franchisees to generate 15% ROI.
It may seem obvious, but you’d be amazed at how many people try to franchise their restaurants without addressing this question: What sets your restaurant apart? What would make a potential franchisee take the financial risk to buy into your brand, your business model? Identify the thing that sets you apart from the rest of the pack. Having a clear company culture will help you appeal to (and hopefully sell franchises to) potential franchisees. One way to know if your restaurant has the desirability needed to franchise is whether or not people have asked you about it. If people are inquiring, unsolicited, as to whether or not you will sell them a franchise, there is obviously some interest there to cash in on.