Converting a small restaurant chain to a franchise model
February 25, 2022
by a searcher from Tufts University in Los Angeles, CA, USA
Curious if anyone has experience setting up a franchise business (as the franchisor). I own a small chain of quick serve restaurants - the operations are as simple as you could imagine, the startup costs are very low, and there are a lot of tailwinds in my vertical.
I think the concept really resonates with urban/suburban women aged###-###-#### These are pretty small-scale stores that generate around $400K in revenue and $50K in profit, plus whatever labor the owner decides to handle themselves. So potentially $75K+ of owner's income while working part-time.
I'm probably a couple years away from testing out a franchise concept, but I'm wondering what sort of stuff I should be considering now in order to set myself up well down the line.
from Texas Tech University in Houston, TX, USA
You mention a small chain of quick serve restaurants. How many are you operating now?
Franchisees will be buying a fully defined system that will produce predictable results. So, I recommend that in preparation you work on that. How would you rate your operation from a business operating systems perspective from 0 to 10? And from predictability? The franchising model will work best when you are able to create a win/win/win/win relationship between you, the franchisee, the customer, and the employees.
So overall, two steps. #1, the business systematization, and then #2, navigating the franchising journey. You need good maps for both points and
then the key is execution.
Rgds,
Victor
from Duke University in Austin, TX, USA