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January 8, 2025 |Franchise Solutions
A restaurant can drastically change its fortunes by franchising. It could be another exciting way to brand an enterprise, earn passive income, and make it a household name. However, franchising may not be everyone's cup of tea. It is a big financial commitment and thus requires strategic planning, as well as full understanding of the associated risks and rewards.
At QMK Consulting, we have helped numerous restaurant owners take this business-transforming journey. Being experts in accounting for restaurants and finance management with regard to the same, we stand ready to help you decide if franchising is your best option in business.
Franchising is what you do when you grant the right, name, concept, and business model of your restaurant to an independent operator (franchisee) in exchange for his or her paid fees or royalties. Although this would seem to cut an easy path, franchising is an intricate affair and comes with huge financial and legal ramifications.
Becoming a franchisor involves an upfront investment as developing a franchise system requires. These include-
Setting up a franchise on average could cost you anything between $50,000 and $100,000 or even more.
The following is some of the income-generating potentials that franchising brings.
It is essential to understand how these streams affect the pole financial model itself in the business.
Before considering a franchise option, ensure that your current business is financially stable. Some questions to ask yourself are:
At QMK Consulting, we will be able to conduct a thorough financial feasibility assessment that will let you know if your restaurant is prepared for this next step.
Franchising, indeed, is a great method of expansion for restaurants with compelling, tested concepts in the business that can be easily reproduced. Do you have established recipes and manuals of operations for training?
You will have to offer support to your franchisees if you are to become a franchiser. This may include operational guidelines, market out-of-the-usual advertising means, and even giving them periodic training.
Franchising is considerably controlled in the United States, so ensure that your federal and state requirements comply with all legal issues.
QMK Consulting provides consulting services for restaurant owners in dealing with the long, tedious, and convoluted procedure of franchising.
Here is a preview of how we could support you:
When you're thinking about franchising your restaurant, do it with an expert. Call for a free consultation with Mohamed Karmous, CEO and Co-founder of QMK Consulting. Over the years, we have been helping restaurant owners realize their goals, and now, we will lead you through each step.
A successful restaurant must have proper financial viability, excellent branding, and the ability to scale as a business.
To franchise, FDD (Franchise Disclosure Document) and adherence to state and federal franchise laws are important.
We assist clients in capital planning, development of business strategy, and continuity planning in order to help them succeed with franchising.
While costs greatly vary, one should expect to pay from $50,000-$100,000 for initial set-up depending on particular needs.
Risks include a lack of control due to legal lawsuits and spending money on upfront costs yet can be avoided by a good plan.