Are you considering buying into a franchise restaurant? You may be excited to learn the industry is growing. In 2019, the fast-casual restaurant market was worth $125.6 billion. With a CAGR of 10.6% from 2021 to 2027, the industry is expected to be valued at $209.1 billion by 2027.
Still interested? Learn more about how to run a franchise restaurant, including daily responsibilities, processes, and tips for making things run smoothly.
WHAT DO YOU HANDLE AS THE FRANCHISEE?
Restaurant franchise owners are very busy people. There’s a lot of responsibility that falls on the owner to keep things running smoothly. Some of the top responsibilities of a restaurant owner include:
- Managing finances: This is the most crucial of tasks a restaurant owner should do. Are you able to afford your food costs at your current menu prices? Do you bring enough money in to keep all of your staff – could you even hire more people? Like any business, the numbers are paramount.
- Hiring and overseeing staff: Restaurant franchise owners need to recruit their team and train them on how to do their jobs. They should be monitoring the kitchen staff to ensure all food is being prepared appropriately while also keeping an eye on the cleaning and service staff.
- Ensuring customer satisfaction: A good restaurant owner will be regularly present within the restaurant. This means greeting guests with a smile and assisting them in getting whatever they need. A restaurant isn’t just a food business, it’s a people business, too.
WHAT YOU CAN EXPECT FROM YOUR FRANCHISOR
When you invest in a franchise, you become a business partner to the franchisor. Therefore, some of the onus is on them to teach you how to run a franchise restaurant. A good franchisor will hold up their end of the agreement by providing:
- A proven business model: A reputable franchisor should have a proven track record that their business model works. This would also include an established playbook for franchisees to use when building and running their business post opening.
- Ongoing training and support: As a franchisee you’ll receive training from the franchisor before you even open your location. This may be at their headquarters or could be done virtually. However, corporate should also send someone to your location to train your staff how to successfully do their jobs prior to opening.
- Marketing support: While you will be responsible for marketing your individual location, your franchisor should be doing what they can to promote their brand on a larger scale. Using marketing tactics on a national level helps increase brand awareness – therefore helping your location. Also, a reputable franchisor should also have marketing materials for you to utilize when advertising your location.
HOW TO FIND A REPUTABLE FRANCHISE TO PARTNER WITH
You know for sure you want to own a franchise restaurant. Now, it’s time to find a reputable franchise to invest in. These are a few action items to help you choose the right franchise:
- Review their FDD: The Franchise Disclosure Document gives you a lot of the information you need to make a decision regarding investment. Be sure to have a lawyer review the FDD as well before you move forward in the franchise discovery process. The FDD will include information regarding the company’s background, affiliates, litigation history, and number of locations. Some organizations may also have financial representation information in Item 19. This section of the FDD is not required. If a franchise does not have this section, it’s not necessarily a red flag, but it is something to ask about.
- Talk to their franchisees: In the FDD there should be a section that provides names and contact information of current franchisees. Make sure to reach out to these individuals. Draft a list of questions to ask in each conversation – this makes it easier to compare answers later. This is a great opportunity to learn what it’s really like to own the franchise.
- Understand the costs: Items 5, 6, and 7 of the franchisor’s FDD outline the initial fees, any other fees, and the startup costs associated with owning a franchise location. As you determine the right franchise to invest in, cost will play a big role. Carefully study these items to be sure you can afford – or fundraise – the amount needed.
PRIMOHOAGIES: MAKE IT PRIMO
PrimoHoagies is a gourmet sandwich franchise. Using only the highest-quality ingredients since 1992, PrimoHoagies has expanded its footprint since its first location in South Philly. Now a national brand, we’re seeking dedicated entrepreneurs to run our franchise restaurants. We’re looking for enthusiastic investors who are eager to bring authentic, high-quality hoagies to their neighborhood. With an investment range of $215,500 to $554,500, our brand is an affordable investment within the larger QSR industry. Franchise candidates are required to have a net worth of $425,000 and $125,000 in liquid assets. Let’s break bread together. To learn more about our franchise opportunity, fill out this form, and a representative will be in touch.