Decided to expand your restaurant business by franchising? Well, you have made a great choice. The option to expand a restaurant business by franchising is usually opted by restaurant businesses looking for options where they need to invest less time and resources to execute the expansion of their brand. Giving a license to independent owners to use your trademark, business model, and processes to sell or provide services under your brand name is a great way to expand your business. The franchise development is a step-by-step process, which we will be illustrating later in this segment. Thus, make sure to stay glued to the piece of writing till the end. Let us together unveil the steps involved in franchise development.
- Current Model Evaluation – Before doing anything, you need to evaluate your current business model. Analyzing every aspect of your business is essential to ensure that your business is ready for expansion.
- Trademark And Logo Registration – Registering the brand’s logo and acquiring a trademark is quite important when you think of franchising your restaurant business.
- Cost Estimation and Financial Projection –Prepare an initial setup cost or investment plan for franchise restaurants. It would have all possible heads of expenditure and then divide the initial setup costs based on your restaurant’s business model.
- Brand Profile – Preparing a brand profile for a better understanding of the franchisees is suggested. The documents will contain the vision of the brand and a brief detail about the products and services offered along with the schedule of the opening of the new outlet.
- Franchise Agreement – As there are no specific laws for restaurant franchising, it is essential to have a registered agreement between the two parties to protect the rights of both the franchisor and the franchise.
- Training – It is important to train the staff to maintain the standards of the product as the original franchise restaurants. The franchisor is supposed to execute the training of the entire staff, right from the head chef to the other staff.
- Marketing and Advertising – The franchisor can support the franchisee in marketing and advertising by including it in the original plan or helping them understand the market and execute marketing activities on behalf of the franchisee in the initial days.
Once you have decided to expand your restaurant business, you might come across multiple tempting ways. However, picking an ideal one depends upon multiple factors. When we talk about franchising, it might seem to be a cakewalk, but involves tons of factors that you are supposed to consider. If you need professional assistance at any point while managing your restaurant operations, then connecting with the ERC team is recommended. We have a team of seasoned experts and consultants who have years of experience in helping various restaurant businesses to grow and succeed. For more details, visit our website today!