How to Develop a Restaurant Franchise

Fast-food restaurants provide excellent franchise opportunities.

A successful restaurant franchise offers a menu with universal appeal using systems that are easy to replicate with high odds of success. Developing a restaurant franchise starts with learning to see the restaurant itself as a product to sell to potential franchisees. The restaurant business tends to involve arduous work and slim profit margins. A restaurant franchise that can help a fledgling entrepreneur beat the difficult odds can be a profitable investment for both franchiser and franchisee.

Things You'll Need

• Menu
• Operations manual

Instructions

1. Develop a menu for your franchise restaurant. Create a range of offerings that will be appealing, profitable and easy to prepare. Make sure your menu items have a wide enough appeal that franchisees will be able to market them effectively in a range of geographic areas. Base your menu items on ingredients that are easy to find in a range of locales, and cost less than one-third of the menu item's retail price. Develop routines and systems for creating menu items efficiently. Make these systems simple enough that you can easily teach them to franchisees and their employees.

2. Create a concept for your franchise restaurant, such as a sports bar, or an old-fashioned family restaurant. Design a layout that is consistent with this concept. For example, if you are starting an old-fashioned family restaurant franchise, develop seating that is adaptable for both children and the elderly. Use familiar, comforting themes for your decor, such as checked tablecloths or dark wood booths. Develop systems that are consistent with your concept, such as friendly, appropriate greetings and old-fashioned extras like providing warm rolls as soon as the hostess seats customers.

3. Write a systems manual for your franchise restaurant. Write a job description for each position, including managers, cooks, busboys, servers and hostesses. Include as much information as possible in your manual, including specific job responsibilities, closing tasks and instructions for how to handle difficult situations such as problem customers.

4. Develop a franchise package for your restaurant concept. Establish a franchise fee. A typical franchise fee ranges from $10,000 to $100,000. A restaurant franchise fee should take into account the fact that a franchisee will have to make a considerable investment in addition to the franchise fee in order to outfit his restaurant. Define the terms of your franchise arrangement, such as the amount of hands-on support and training you will provide for your franchisees' restaurant staff.

References

• All Business: How Much Does a Franchise Cost?
• Quantified Marketing Group: Should I Franchise My Restaurant
• Reference for Business: Restaurant Franchise Business Plan