4 Things to Keep in Mind When Joining a Restaurant Franchise

Tips For Making the Most of Your Restaurant Franchise


Starting a location of a restaurant franchise means you’re starting a small business. This isn’t always easy. To help your restaurant franchise have the most success, here are a few things to keep in mind.

1. High Success Rate

Restaurant franchises have a high success rate. They have name recognition and built in demand that will keep customers pouring into your restaurant. You don’t need to worry about establishing a reputation for your restaurant because everyone will already know about the great service and fresh foods. Consumers look for franchise restaurants because they know the concept and it assures quality, especially if they don’t know much about the food in the area.

Restaurant franchises also benefit from successful brand strategy and a support network from the parent company. When operating a restaurant franchise you don’t have to worry about creating a brand because the parent company will have done it for you. It usually will also design the layout of all your menus and offer a guide for decorations. Your parent company will also offer a support network of marketers and trainers.  These people will take care of training you and your employees as well as handle your marketing strategy. Most franchises advertise nationally so you won’t have to worry about marketing at all.

2. Market Demand

Before buying into a restaurant franchise, make sure there is demand in your area. If there are already ten pizza restaurants, opening another probably isn’t the smartest business decision. However, if the area only has a McDonald’s selling burgers, filling the market demand for a fast casual burger restaurant would be a wise investment. Making sure there is a market demand ensures the longevity of your restaurant franchise location and your financial success.

3. Initial Investment and Royalty Fees

The initial investment of buying into a restaurant franchise varies with every company. For smaller franchises the cost might only be in the tens of thousands but buying into a franchise like Taco Bell or McDonald’s could cost millions. Sometimes these mega franchises require a prior experience in restaurant operation, a minimum net worth, or a several hundred thousand in liquid assets. When looking for a restaurant franchise make sure you find one that suits your financial assets.

After you’ve bought into the franchise and started your restaurant franchise location, you’ll be expected to pay a royalty fee. These fees vary anywhere from five to twenty percent of profit and can take a large chunk out of your location’s income. These fees cover national marketing as well as your license to use the brand.

4. Your Involvement

Starting a restaurant franchise location is going to take a lot of time and work. As the location’s owner you’ll probably be the first one there and the last one to leave for at least the first few months and more likely first year. Make sure you’re ready for all the work associated with starting a small business.

Thinking About Starting a Restaurant Franchise Location?

We make becoming a franchisee as easy as it gets. We’ll help you throughout the entire process of opening your location from finding a property to establishing accounts with suppliers. We’ll help provide you with business training as well as provide trainers to train your staff. Even after you’ve opened we will continue to offer consistent support in case you run into any problems.



+1 (818) 650-8307

16861 Ventura Blvd #303
CA 91436