Buying a restaurant franchise is a great alternative for entrepreneurs who may be reticent about starting or investing in their own independent restaurant business - especially during a recession. In addition to the training, marketing support, and brand prestige a successful restaurant franchise operation can offer budding entrepreneurs, franchising is also one form of business entrepreneurialism that offers would-be business owners a vast amount of upfront pre-investment advice and guidance from a host of independent experts. So here is an A-Z checklist about how to start a restaurant franchise and make it a success.
Buying a restaurant franchise is a great alternative for entrepreneurs who may be reticent about starting or investing in their own independent restaurant business - especially during a recession.
In addition to the training, marketing support, and brand prestige a successful restaurant franchise operation can offer budding entrepreneurs, franchising is also one form of business entrepreneurialism that offers would-be business owners a vast amount of upfront pre-investment advice and guidance from a host of independent experts.
So rather than reinvent the wheel on this topic, I've sifted through some of the best articles, resources and tools to provide an A-Z checklist about how to start a restaurant franchise and make it a success.
From evaluating your readiness for franchise ownership to assessing and buying a restaurant franchise to understanding how the law frames the process of buying and operating a restaurant franchise, here is a selection of expert advice that's worth bookmarking. Note that while much of the information below focuses on restaurant franchising, there is a good amount of information that applies to franchising in general.
1. Is Franchising the Way to Go?
Tips on whether the franchise business model is right for you.
- The Basics of Franchising - This quick overview from the Small Business Administration explains the ins and outs of what's involved in franchising as a business option and also includes this "Is Franchising for Me?" workbook.
- *Is Franchising Right for You? - This quick quiz from "The Franchise King Blog"* is a 10 minute test designed to get you thinking about investing in a franchise type business of your own.
2. Assessing Potential Restaurant Franchise Opportunities
Tips on how to choose the right franchise for you.
- Investigating a Franchise Opportunity - How a Little Detective Work and the Law can Help - This earlier Small Business Matters blog post outlines steps you can take yourself to assess a franchise opportunity as well as guidelines on what the law requires franchise owners provide to potential franchisees.
- Buying a Restaurant Franchise - Do you have what it takes to be a successful restaurateur? In assessing a food business, you'll need to understand the advantages and disadvantages of a food service business franchise model. Read more about the secrets of evaluating restaurant franchise opportunities in this excellent article from MSNBC and Enterpreneur.com.
- Most Popular Food Franchises and How Much They Cost - About.com has compiled a list of the most popular food franchises and the costs involved to open each one.
3. The Process of Buying a Restaurant Franchise
Buying a franchise is not always as easy as you might think. Get a greater understanding of what it takes by reading these step-by-step guides.
- Buying a Franchise: A Strategic 101 - Here are four things you can do to ensure the investment you make is in a credible, proven franchise model and that there are no hidden pitfalls.
- Business.gov's Franchise Buying Guide - Helpful tips, resources and regulatory guidance from the government's official site for small businesses. The SBA also offers comprehensive advice for potential franchisees.
- How Not to Buy a Franchise - When was the last time you purchased your own franchise? If you answered "never," then this article is for you. (Joel Libava on Small Business Trends)
4. Operating Your Restaurant Franchise within the Law
franchise contract will outline the type of support your franchiser will
provide to help you make your business operation a success. This may or may not
include advice on how to comply with the laws and regulations that govern the
food service business.
From labor laws to food safety laws and new regulations such as no smoking laws, understanding and achieving compliance with legal and regulatory requirements can have a big effect on the success of a restaurant operation.
Read Operating a Restaurant within the Law: A 101 in Compliance - Part 1 and Part 2 for guidance on the laws that apply to minimum wage, tips, and overtime, youth labor, immigration, food safety and taxes.
- Small Business Franchise and Business Opportunities Guide - from www.business.gov.
- International Franchising Association - IFA represents all aspects of the franchise community and works to protect, enhance and promote franchising.
- The Franchise King - This site is rich with franchise information, resources, products, and services. If you are a prospective franchise owner, you'll find the resources you need to help you lower your risk. If you are a franchisor, you'll find great resources here to help your franchise system continue to flourish.