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Starting Up in Restaurant Franchising

Restaurant Franchise

[Untitled]Restaurant Franchising offers the advantage of a quick new start based on a tried and tested formula for doing business, avoiding having to build a new business and brand from the start. Opening your own without such a setup may seem attractive due to the savings, but if you take a longer term view, franchising is a much safer way of getting yourself established. You also remove much of the risk and when it comes to raising finance, moneylenders are more willing to invest when you have an establsihed system in mind.

A well run franchise offers you a turnkey business: from site selection to lease negotiation, training, mentoring and ongoing support as well as statutory requirements and troubleshooting.

Using the help of the franchisors, you are able to take the franchise business to a level you would not be able to without the expert guidance.

Training: Franchisors often offer quality training not available for free to individuals starting up. Although training it is not free for you, it is supported through the franchise fee that the franchisor asks.

Limited number of viable franchisees: In any city or region there are only so many people who have the resources and the desire to set up a franchise in an industry, compared to those who would be able to run their own directly-owned business

Successful franchising will require a careful vetting process when evaluating potential franchisees than required to hire a direct employee. A poor manager of a directly-owned outlet can be replaced. But removing an incompetent franchisee is much more difficult. They can easily lower the public goodwill towards the brandby supplying poor goods and services.And so the selection must do everything to minimise this risk

The Diversity of Restaurant Franchising

Restaurant franchising is branching out! Until relatively recently, pizzas, burgers, curries, chips and fried chicken were the staple fare associated with restaurant franchises. Following on from this, themed food became the order of the day, with Chinese, Japanese and Italian menus topping the popularity charts. Then came specialist coffee shops, ice cream parlours, sushi bars, and bagel and donut kiosks. Now restaurant franchising has been taken one step further, as it seems that literally any food can now be franchised. Examples of recently launched food franchises include ice cream cupcakes, pretzels, cookies and crepes and the trend looks to increase further. To add to this, the health food business is the latest to join the franchise market, with sales on the up and outlets opening throughout the country.

So, should traditional restaurant franchise businesses be worried by this latest development? Is the consumer going to forego his or her burger and fries in favour of sushi and salad or (if not concerned about the waistline), cookies and cupcakes? Well, the latest research undertaken seems to indicate that, where restaurant franchising is concerned, everyone can have a slice of the pie. Despite the innovative healthy restaurant franchises that have been sprouting up in recent years, it appears that consumers have not moved significantly away from fast foods. The adage that old habits are hard to break may be true here, with surveys showing that one of the main reasons consumers visit fast food outlets is because they crave the taste of fried foods. In fact, it has long been argued that fried food is addictive. Other reasons given by consumers of fast food are value for money, generous and filling portions, convenience and impulse. On the other hand, consumers eating at healthy restaurant franchises are less likely to act on impulse or because they crave a particular food. Their purchase is likely to be premeditated and they are more inclined to be concerned about nutritional value than monetary value.

Restaurant Franchise: Critical Steps to Success

How to Succeed in Your Restaurant Franchise Buniess and Minimize all Risk

This report helped many people buy their restaurant franchise and when you follow through on the basic steps, you'll take 90% of the risk out of it.
The failure rate of non-franchised restaurant is almost 90% within 5 years. But 90% of franchised restaurants are still in business after this time.

You will know you have a business that will continue to grow and that you could sell for a healthy profit, at a time of your choosing.

The 22 page report shows you how you can achieve this and how you can set up the action steps needed to make it happen.There will always be some who fail because they just didn't follow through on basic advice and didn't take the steps to make sure they were investing in the right franchise for them.But if you follow this basic step-by-step guide, you will be setting yourself up to succeed.

Perhaps you have been thinking about investing in a restaurant franchise for some time. It's probably what you've wanted to do but you're worried if it's the right move and if it will work out ok.

Maybe you are even worried that opening a restaurant franchise may simply not be the right thing for you to do. So we've created this valuable report with a step-by-step guide on how to set up your action plan that will take out most of the risk and let you start your new enterprise.

Here is what you get in this report:

22 page report full of information and advice and statistics on The Restaurant Franchise Business including critical info how to Select and Open your own Restaurant.

  • 6 important questions to ask your Franchisor about Marketing so you Know For certrain They Offer Good on going Support.
  • 7 Ways to Assess if Your Location Is Good. Honest answers here will take out Much of your Risk Finance.
  • What you Need to buy an Exisitng Franchise
  • The Danger of Trying to Change the Existing System
  • The Importance of meeting customers face to face on the shopfloor.
  • Why Franchisors set up a tight sytem and how you benefit from it even if you don't always agree.
  • How & Why Franchisors Support you if You Get Any Bad publicity


5 point check list on Training so you know you'll be getting on continual training support even after you've signed up Marketing your Restaurant. Important things to do.


  • How to make sure you increase the value of your restaurant so that it attracts a good price you choose to sell it in the future
  • The Important 7 Signs That Show Just How Good Your Franchise Will be
  • Free Bonus of 12 restaurant marketing tips from a marketing guru specifically focused on bringing customers into your restaurant.
  • So even if you don't open a franchise operation you can still use these to maximize your chances of success in a non-franchise restaurant.
  • The top 3 web sites that deliver article information and resources on restaurant franchises mostly without trying to sell you anything(as most franchise sites do)


Our 22 page report contains 18 important benchmarks for you to attain so you can be sure your potential restaurant franchise is going to give you exactly what you need tosucceed. If you can check the 18 boxes in our benchmnark template, you will have removed 90% of your risk form your venture. We show you what to ask and exactly how to assess the response.

We'll tell you exactly how you can be sure of the level of support you'll get from the franchisor.It's a proven way to throw out those who may look good and talk the talk, but don't perform in the follow through and will not give you full support after you've sigend up, when it's too late to do anything about it. You can find all of this out before you even spend a cent.

Just follow these important steps we recommend.

We'll also show you how to assess precisely what level of training support you get as part of the franchise. Simply follow the 5 points and check each one as you get the responses. You'll know precisely what to expect after you've entered into the agreement.

We provide a list of the signs of a really good franchise and you'll see if you are talking to the right company. It they fail on any of these, it's best to drop them and move on to another company.

We can't totally guarantee your success but you will be following an independent proven path that many people who took our report have already taken to make sure they made the right choice of franchise. The vast majority are running successful franchises and some have been spectacularly successful because they listened and took action on all the plans and guides, formed their own plan of action, and made it happen.

Many different types of restaurant franchises are to be found on our high streets and in our shopping malls. There are fast-casual outlets, where made-to-order sandwiches, panini, salads and desserts are prepared, catering for the busy office, factory or construction worker or shopper. Cheap and cheerful fast food outlets are always plentiful, offering burgers, kebabs, fried chicken or pizza for those on a budget or in a rush.

There are specialist coffee houses, offering an array of freshly brewed coffees from around the world, along with a tempting selection of muffins, cookies and cakes. Then there are restaurant franchises offering more substantial and up-market cuisine, often specialising in food from a particular country such as China, Italy or Japan. Although still reasonably priced, a meal at such an outlet will cost more than at other restaurant franchises, with marketing strategies directed principally at white collar workers and premises often sited near government complexes, universities and hospitals.

Restaurant franchisors enter into franchise agreements, which grant franchisees the exclusive right to develop and operate businesses at certain locations. Initial franchise fees are recognized as revenue when all material services and conditions required to be performed by the head office have been substantially completed, which is generally when the restaurant opens. Franchisees are required to pay royalties to the head office, based on a percentage of gross sales as reported through the franchisees' point of sales systems. The royalties are recognized as revenue in the period corresponding to the sales reporting period.

Typically, weekly reports on sales at each franchise location are received by the head office and revenue is calculated directly from those reports. Franchisees are usually required to contribute to an advertising fund, typically at a rate of up to 2% of total franchisee gross sales.

Restaurant franchises market their menus primarily through targeted local store marketing efforts, mail drops, media advertising, and print campaigns. The franchising company relies on the cash deposits from franchise sales as well as royalty fees from existing restaurant franchises to support the expenses of the business. Revenue is derived from the sale of franchises, from royalties paid by franchisees and from the sale of food and drinks at the franchised restaurants. Revenues can be increased by adding new company-owned restaurants, selling new franchises and expanding the range and consumption of food and beverage products sold.

The unprecedented economic conditions of 2008 have resulted in a significant reduction in the sales of new restaurant franchises and many companies have had to reduce corporate overheads. The ability of the smaller franchises to fund their operations will depend on the length of time of the current economic downturn, future performance and the ability to successfully implement business and growth strategies. However, food related businesses tend to hold up well in a recession, especially those at the bargain end, and there is every reason to be optimistic that this trend will continue.



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restaurantfranchise 		Latest page update: made by restaurantfranchise , Nov 14 2009, 6:12 AM EST (about this update About This Update restaurantfranchise Edited by restaurantfranchise


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