To open a restaurant franchise, conduct research on various franchise opportunities, and secure the necessary funding for the purchase. Restaurant franchises involve a large cash investment as well as ongoing royalty payments, advertising fees and strict rules, so research is key before starting a franchise.
- Research different franchises
Industry publications, such as QSR, publish yearly rankings and are a good place to start if you do not have a franchise in mind. Once you have selected a number of franchises, visit the corporate websites for more detailed franchise information. Consider the initial cash investment, start-up costs and ongoing costs, including royalty payments, advertising fees and updates. Do research on the success of the company and nearby franchises. Review the franchise agreement. Find out how much support is offered; a network of brand representatives, managers and trainers are important to the success of a franchise.
- Shadow a franchise owner
Before purchasing a franchise, speak with several franchise owners, and ask them about their experience. Spend a few weeks shadowing the owner of a franchise you want to purchase.
- Secure the funding, and review the contract
In addition to a required cash investment, you may also need to secure a loan from a bank or investors. Once you have the adequate funds, find a lawyer with franchise experience to review the contract, franchise package and tax implications.