Is Your Restaurant Ready To Franchise?

Are you currently running a successful restaurant with a catchy logo, high brand recognition, delicious food options, expertly trained staff, and a unique concept? If so, chances are you’ve had customers inquire about new store locations and/or potentially purchasing a franchise from you! Sure, you may be able to use these potential franchisees’ capital to expand your concept, but are you truly ready to take the plunge? Taking that next big step to franchise your successful restaurant is no small feat. It requires planning, time, money and, obviously, a thriving business. Before beginning the process of franchising, take a step back ask yourself these important questions:

Is Your Business Capable of Franchising?

Your business must be replaceable in order to franchise. Franchising is all about recreating the same great model of your first restaurant. The familiarity of a franchise it a major reason why franchises are successful. Customers learn to know and love the franchise and expect the same quality from all franchise locations. Having a unique business model is great, but it does not always lend itself to franchising. If your business is built upon beachside views and outdoor seating, it probably won’t work away from the coast.

Is Your Business Making a Profit?

In order to franchise, your business must perform consistently, both in day-to-day operations as well as financially. A constant flow of profit is a positive sign that maybe your business is ready to branch off and begin the process of franchising. If a consistent profit isn’t being reached yet, it’s best to hold off and wait until that steady growth continues. I

Are Your Systems Easily Implemented?

Franchising is more than simply opening a new location. Franchising requires you to have a fully developed operations manual. This manual is sold to franchise owners. Owners then implement the concepts as determined by the operations manual. This manual should be specific, well-tested and user-friendly. Owners should be able to simply buy the system and concept from you, rather than recreating everything you have already done.

Have You Opened More Than One Location?

Experts suggest opening a second, if not a few more locations before moving to franchising. This way, you can test drive the process of opening a new location before sending someone out to do it themselves.

Has Anyone Inquired About More Locations?

In order to build a successful franchise, there must be interest in more locations! If customers have asked if you intend to open any more locations, it is a good sign that there is interest. It is even better if others have asked you about the opportunity to franchise. This demonstrates that there are people who want to become involved!

Do You Have an Advertising and Marketing Plan?

Franchises rely on your ability to produce much of the marketing and advertising content. Part of the percentage of their profits that they turn over to you is designated for this purpose. You are a necessary part of helping your franchise branches prepare for success.

Are All Legal Precautions in Place?

Before franchising, make sure your business has taken the necessary legal steps. Trademark the business name and anything else that needs to be protected (like the name of a signature menu item). Legal documents will also need to be drawn up for franchising contracts.

Are You Willing and Able to Relinquish Control?

Part of franchising is allowing franchise owners to make decisions about their branch. Although these decisions will still be made within the parameters laid out by the operations manual and other written agreements, ultimately, the franchise owner has the power to make many final decisions. Should you be unable to let go of making some of the decisions, you may not be ready to franchise.

Go through all possible scenarios before franchising. Being fully prepared is the key to success! When you’re ready to franchise, SDCR can help. SDCR is your go-to source for POS systems specifically tailored for both established and new franchises.