Franchising is known to lead to either success or failure. The most successful restaurants are known as to franchise either fast food or quick service. The ultimate truth is that franchising with any business is risky, for this you need to study it will and ask yourself three important questions.
- Do we have a unique concept that can be readily duplicated?
- Would we like to own multiple locations but do not have the cash or time?
- Does a lower level of risk appeal to us?
You need to measure and to be completely ready to franchise. Your units should make enough profit for both you and your franchise so you not fall back. If your franchise can generate an adjusted 15% return on investment on a mature franchise, then you know that your restaurant could be a good candidate.
Once we know we are ready to take up a franchise, we may want to obtain the services of a franchising company that can help us with many requirements such as The Franchise Disclosure Document and Agreement. Usually, this type of help can be found in the form of consultants.