If you’ve reached the stage where you’re considering franchising, it most likely means your current restaurant is bubbling over with success. Congratulations! We love restaurant owners with passion and industry zest. Who knows? You may just be one of the next most profitable restaurant franchises. But first, there are some essential ingredients you need to throw into the pot.
Ingredient 1: Add expert consultants
Franchising is a big decision. Considering whether it’s the right time and place as well as the profit potential, are just some of the questions you need to ask. The good news is that franchising is a smorgasbord of success when accompanied by a sound strategy. Turning to consultants with industry experience and a fiery appetite for helping others succeed, greatly increases the chance to thrive.
Yela Concepts are seasoned hospitality experts. With a network of connections in the food industry, including Food Halls, Yela will be sure to get your big idea cooking. Our unique process, or ‘The Yela Way,’ means you will be guided and empowered to build your brand and enjoy the creative freedom to see your dream mushroom.
Ingredient 2: Add sweet and sour
As the franchisor, you are selling franchisees the blueprint to replicate your restaurant. It’s your baby that you’ve nurtured with long hours and driving passion. This means weighing things up is even more important.
- You have the benefit of your franchise operating in multiple locations, which means your brand recognition will increase.
- You reap the benefit of multiple revenue streams.
- Your brand grows, and you earn royalties while utilizing the franchisee’s money to fund the venture.
- Franchisees have a vested interest in the business’s success, which means tremendous success for the franchisor.
- Franchisees contribute to marketing and advertising funds, which bolsters gross spending, buying power, and overall achievement of the franchise.
- You will lose a certain amount of control as the franchisee is rightly due a say given their financial investment.
- Disagreements may arise between franchisor and franchisee, resulting in legal costs.
- Badly performing franchisees can taint the reputation of the entire restaurant chain, damaging your brand. In fact, 86% of people hesitate to purchase from a business that has negative reviews.
Ingredient 3: Add the Admin
Admin alert! There is a LOT of it. The reassuring news is you can call on professional assistance to ensure you have everything covered. Proving to potential franchisees that your restaurant is making good money is just the starting point.
Here are some of the items you will need to tick off your list:
- Business Plan
- Audited Financial statements
- Franchise Offering Circular
- Operations Manual
- Staff and Office
- Franchise Plan
- Registered trademark or logo
- Create guides that illustrate how the franchise must operate
- Franchise Agreement and Franchise Disclosure Document
- File Franchise Disclosure Statements
- Advertise your franchise
Franchising is deliciously satisfying if done right. Yela Concepts love nothing more than imparting years of acquired industry knowledge and successful formulas. Our consulting and investing services ensure you receive the right advice and mitigate financial risk. Full of get-up-and-go attitude, Yela brings the ideas and know-how to the table.