A recent International Franchise Association report shows that franchising continues to have a substantial, positive impact on the U.S. economy. The restaurant industry has always been fertile ground for franchise success. Restauranteurs looking to expand their concept should consider franchising as an option. Franchising a restaurant concept can offer significant benefits, including new revenue streams, accelerated growth with lower capital expenditures, and increased customer acquisition and retention. Franchising revolves around brand recognition, plus established processes, systems, networks, and support. To successfully build and scale a restaurant franchise: Evaluate franchise feasibility. Before you commit to franchising, determine whether your existing restaurant concept is profitable, with a solid operational infrastructure, a desirable (and replicable) concept, and consistent customer demand. Also, take an honest look at how to finance a franchise (loan, investment capital, etc.) Depending on your profitability, location, and existing systems and infrastructure, the cost to develop a franchise program can range from $15,000 to $100,000. Make a franchise-specific business plan. If you decide to move forward with franchising, create a detailed, franchise-specific business plan, outlining the operational goals, revenue, costs, profitability projections, and market analysis of the franchise system and your franchisees. The most important element of a franchise system is to position franchisees to be financially successful. Also, the plan should include franchise sales goals and projections. You’ll need to develop well-founded business, regulatory, and transactional strategies to unlock your successes, so work with trusted experts – including a franchise attorney – who can help you understand the franchising game.…
