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Steps to Franchising a Restaurant

Steps to Franchising a Restaurant

The challenge of how to franchise a restaurant, and whether or not to franchise a restaurant, will confront an individual who operates a successful restaurant at some point. Sometimes the original restaurant owner has designs to franchise their restaurant from the very beginning, but this should not discourage restaurant owners who did not consider the challenge from the beginning.
The first step to franchise a restaurant is to research the economic reality that governs similar franchisee-franchisor relationships in the same area and similar concepts. Franchise fees and commission percentages are the most important factors of which to be aware.
Next, the owner who wants to franchise a restaurant should develop a uniform franchise offering circular which draws on the above information to detail the relationship that will exist between the franchisor and the franchisees.
The third step to franchise a restaurant is to assemble a statement about why an investor should franchise that particular business, describe the restaurant’s history, distinguish between that particular restaurant and the competition, and give a general outline of the success experienced by any other restaurant in the franchise.
A road show should be formed to attract individuals who may want to franchise a restaurant in order to highlight the features of the restaurant in question and attract greater attention. If there is a high level of interest, a training center should be invested in which is a replica of the kitchen in the current restaurant so that investors can see how the kitchen operates.
The penultimate step to franchising a restaurant involves interviewing the possible franchisees. It is important to gauge their interest in and dedication to franchising the particular restaurant.
The final step to franchising a restaurant is to form a contract, although even after the restaurant is signed there persists obligations between the franchisor and franchisee.

KFC Franchise

KFC Franchise

The KFC franchise is a food franchise that has undergone drastic remarketting efforts in recent years. In recent years, the KFC franchise has dropped its previous name, Kentucky Fried Chicken, in an attempt to appeal to a more health-conscious public. This rebranding has lead to a growth in store fronts for this fast food franchise.
In some cases, since the KFC franchise was absorbed by PepsiCo in 1986 and spun into Yum! Brands incorporated, a KFC franchise may share property with an A&W, Long John Silver’s, Taco Bell, or Pizza Hut food franchise.
The KFC franchise began in 1930, when the first store was opened by Colonel Harland Sanders, whose persona was an early corporate icon and who is still featured on many promotional materials associated with the fast food franchise. However, the first KFC franchise location was not started until 1952. Since then, the fast food franchise has expanded to more than 82 countries around the world. It serves more than 12 million customers each day in its more than 14,000 locations.
The KFC franchise requires an initial investment of $25,000, as well as an annual franchise fee of four percent to be paid to the corporation.
Opening a KFC franchise will put the new business owner in contact with more than 1,200 licensed and experienced franchisees who belong to Yum! Value Network. The KFC franchise is located in Louisville, Kentucky.

Starbucks Franchise

Starbucks Franchise

It is technically impossible to own or operate a Starbucks franchise. Starbucks franchise opportunities, as much as they exist, are actually the opportunity for Starbucks to operate a variety of flexible coffee or tea “programs” in another location. These Starbucks “franchise” opportunities can be tailored to specific markets, with the most common markets being colleges and universities, hotels and resorts, and existing restaurants.
A Starbucks “franchise” may also be authorized in qualifying high volume or high traffic retail locations. If a business owner believes that their location meets the requirements that Starbucks has established to be considered for a Starbucks “franchise,” they should get in touch with a Starbucks Franchise Consultant to determine if they meet the requirements to be considered as one of the local Starbucks franchise opportunities.
If the Starbucks Franchise Consultant assigned to determine if the location in question meets or surpasses the Starbucks franchise opportunities requirements, then the Starbucks Franchise Consultant will contact the property owner.
However, just because it is impossible to open a Starbucks franchise does not mean that Starbucks franchise opportunities are nonexistent. The company that owns Starbucks also operates Seattle’s Best Coffee. A Seattle’s Best Coffee franchise is as close to a Starbucks franchise as most aspiring business owners can get.
Although a Seattle’s Best Coffee franchise may not have the same curb appeal that Starbucks franchise opportunities may have, these Seattle’s Best Coffee franchises provide an opportunity for the aspiring barista who wants their own coffee franchise.

Dunkin Donuts Franchise

Dunkin Donuts Franchise

A Dunkin Donuts franchise is one of the most common coffee franchise opportunities. The first Dunkin Donuts franchise was started just five years after the first Dunkin Donuts was started. The Dunkin Donuts franchise grew out of company founder William Rosenberg’s experience with Industrial Luncheon Services, which was a company that handled the delivery of meals and snacks to Boston area workers.
After Rosenberg’s success with Industrial Luncheon Services, he was convinced to start The Open Kettle, a donut shop in Quincy, Massachusetts that would change its name after two years to Dunkin Donuts. Besides its current offerings of donuts, muffins, and bagels, the Dunkin Donuts franchise is also one of the premier coffee franchise opportunities.
Dunkin Donuts is a subsidiary of Allied Domecq. Allied Domecq is also the parent company of Baskin-Robbins and Togo’s. This means that a Dunkin Donuts franchise can be co-branded with Baskin-Robbins or Togo’s.
These coffee franchise opportunities involve an initial franchise fee between $40,000 and $80,000. The royalty fee for a Dunkin Donuts franchise is just under six percent.
The Dunkin Donuts franchise has expanded beyond the United States. Dunkin Donuts franchises are found in Asia, Australia, New Zealand, and the Middle East. In 2005, the most recent year for which data is available, there were more than 4,500 franchises in North America, as well as 1,700 franchises in international markets.

Tim Hortons Franchise

Tim Hortons Franchise

A Tim Hortons franchise is a popular option for individuals seeking to open a coffee franchise in Canada. Coffee franchises are some of the most competitive franchises available. Part of this competition is due to the loyalty which many shoppers develop with their preferred coffee franchise once they identify a coffee franchise they prefer.
Tim Hortons franchises have expanded from Canada in recent years, which has increased the competition between the various coffee franchises in North America, as the border between Canada and the United States becomes more porous for coffee franchises which are seeking new dedicated consumers for their coffee franchises.
This expansion has placed the Tim Hortons franchise in direct competition with the Dunkin’ Donuts franchise because both are baked goods and coffee franchises. At this time however, Tim Hortons remains the largest donut and coffee franchise in Canada with a growing presence in the United States of America.
The Tim Hortons franchise began in 1964. As of the start of 2010, there were 563 Tim Hortons franchise locations in the United States, with the primary concentrations of these coffee franchises located in and around Buffalo, Rochester, Syracuse and New York City, New York; Detroit, Flint, Saginaw, Bay City, Midland, and Lansing, Michigan; Columbus, Dayton, and Toledo, Ohio; Richmond, Indiana; Erie, Pennsylvania; Charlston, Huntington, and Wheeling, West Virginia; Maine; Rhode Island; and Connecticut.

Chick Fil a Franchise

Chick Fil a Franchise

A Chick Fil A franchise is different from most fast food franchise operations, and most franchises in general, in that very little upfront money is required in order to obtain the license to operate a Chick Fil A. The trade off for the low franchising cost, however, is that a Chick Fil A franchise owner is required to pay a substantially larger portion of their profits back to the company.
A fast food franchise typically has to pay less that six percent of its gross sales back to the corporation. A Chick Fil A Franchise may be required to pay as much as fifteen percent of the fast food franchise gross sales and fifty percent of net profits each month.
The Chick Fil A franchise also requires that the fast food franchise be closed on Sundays, which are traditionally a very profitable day for a fast food franchise. This is due to the strong family values held by the original operators of the Chick Fil A franchise.
In addition, a Chick Fil A franchise operator will have the property on which the Chick Fil A franchise is located subleased back to them. Chick Fil A Incorporated handles the complete advertising, business location selection, training, and marketing needs of the fast food franchise owner.
Chick Fil A is very selective in handing out Chick Fil A franchise licenses, on average offering only seventy five of the more than one thousand applicants each year the opportunity to operate a location for this fast food franchise.

Pizza Hut Franchise

Pizza Hut Franchise

Operating a Pizza Hut franchise allows an individual to be a part of the first national pizza franchise. The Pizza Hut franchise process is handled by Yum! Brands, which means that a Pizza Hut franchise can be multi-branded with A&W Restaurants, KFC, Long John Silver’s, Taco Bell, and Wing Street. As a result of these cross-branding opportunities, a franchise owner is able to provide their customers more opportunities than can be presented by a different pizza franchise.
The first Pizza Hut opened in 1957 in Wichita, Kansas, with the first Pizza Hut franchise opening just a year later in nearby Topeka. In the more than fifty years since, the Pizza Hut franchise process has lead to this worldwide pizza franchise establishing more than 5,000 Pizza Hut franchise locations throughout the United States of America, and an additional 4,000 Pizza Hut franchise locations around the world.
The initial franchise fee associated with opening a Pizza Hut Franchise is $25,000. Beyond that, the cost of opening a Pizza Hut franchise varies between $300,000 and $620,000 to open a pizza franchise. These costs include fees associated with developing the location, obtaining the necessary equipment, obtaining inventory, making improvements to the facility that will house the Pizza Hut franchise, marketing fees, and various other miscellaneous costs needed to make a pizza franchise operational.

Facts About Starting a McDonalds Franchise

Facts About Starting a McDonalds Franchise

The McDonalds franchise is one of the most successful franchises in the world. If an individual meets all necessary eligibility requirements, owning a McDonalds can be a successful business endeavor. However, it can be very difficult to purchase a McDonalds restaurant.
The McDonalds franchise requires a potential restaurant owner to provide a down payment of 40 percent. The total cost of obtaining a McDonalds restaurant can cost more than $1 million. Therefore, an individual must have access to extensive financial funds if he/she wishes to obtain a McDonalds restaurant.
The McDonalds franchise also requires candidates to have experience managing a fast food restaurant. In addition, an individual should be prepared to actively participate in the operation of his/her restaurant for an extended period of time.
McDonalds franchise contracts generally last for a period of 20 years. Obtaining a McDonalds restaurant is a long term investment.