How Can I Franchise My Restaurant?
Franchising your restaurant is an excellent way to expand your customer base. You will be able to increase the profitability of your restaurant and widen your market without the need to acquire additional capital. Franchising can also be a great way to gain popularity for your brand. You will want to follow a few steps to create your franchise.
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Instructions
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Research local franchise arrangements in your area. Compare franchises that are similar to your restaurant. Obtain information regarding their franchise fees and commission percentages. This will give you an idea as to whether or not franchising your own restaurant will be profitable to you.
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Create your franchise manual and franchise documents. Outline a detailed, step-by-step process that demonstrates how your restaurant operates. You are essentially creating training manuals to guide new franchise owners on how to run their business. Include every detail possible. A franchisee will use these manuals to operate their business and train new employees. You will want these manuals and documents to be as comprehensive as possible.
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Secure your trademark. Your business trademark is your most valued asset, so you want to ensure that your brand is protected and cannot be used by others. Hire an experienced patent and trademark attorney to assist you with the process. You will file an application for a trademark with the U.S. Patent and Trademark office. This process can often take a year or longer to complete.
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Create an advertising and marketing plan. Develop the necessary marketing tools that will help you sell your franchise to interested franchisees. Successful marketing tools may include brochures outlining your franchise and instructional DVDs that outline your business and make it exciting and interesting for possible investors. You can also create a Web site that showcases your restaurant franchise and is an excellent way to reach millions of possible franchisees at a low cost.
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Draft your Franchise Disclosure Document (FDD). Seek the services of an experienced franchise attorney before developing this document. There are many strict regulations regarding franchise disclosure documents, and they must be approved by all states that regulate franchising before you will be allowed legally to sell your franchise. You will need your attorney's guidance in drafting and filing this important document.
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References
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