Should you franchise your restaurant brand?

Franchising can be a path to growth and is a business model that allows an owner to grow their brand through expansion by others. In the restaurant industry, most chains have grown to the size they are through some combination of opening company-operating units along with growing their franchised units. Navigating the franchise path includes examining your restaurants business model, selecting the right establishment location and many other facets this article will explore so you can answer – is franchising right for your restaurant brand?

Determining a proven business model

If you are thinking of franchising, you must first have an operating business model that has demonstrated that it can be successful through a proven track record of sales and profits. While in rare cases restaurant brands have successfully franchised after only opening a single corporate-owned location, this is not common. Operating multiple successful corporate restaurants prior to franchising gives you more credibility and further proof that you have a sound concept. Additional factors include:

• Identify your unique selling proposition: What sets your concept apart from the rest? If you want to franchise, you must know this and be able to articulate it in a relatable manner
• Replicable concept: This may be more challenging than you might think. To be able to be easily replicated, you need the following:
  - A footprint that will work in different market environments and different types of locations
  - A menu that is appealing with recipes that can be easily executed, but still difficult for competitors to duplicate
  - A brand image that is unique but not so far out there that it is difficult to replicate

Finding the right location

You will need selection criteria to use as a baseline for evaluating any potential locations for franchisees. These should include demographic targets, building size, signage requirements, parking and traffic counts. Other important elements to consider are:

• Attractive and efficient floor plans: Being able to have the appropriate-sized (and equipped) kitchen, dining area, storage areas, takeout and delivery staging are more important than ever for the success of your restaurants’ growth, whether through company expansion or franchising