How Do You Start a Restaurant Franchise?

By Franchise Information June 10, 2022

There are many advantages of franchising in the restaurant industry, and one of these advantages is that it’s relatively easy to get a restaurant set up and generate a profit. But how do you start a restaurant franchise? This guide will walk you through the process and show you why you should start a franchise restaurant.

Evaluate Your Area’s Needs

When starting a business of any kind, it’s important not to promote a particular product or service until you understand how it connects with the customer. The same is true for franchising a restaurant. 

What specific needs do you see in your immediate area? It could be that your community can’t support another drive-thru burger joint but might benefit from a casual dining establishment. 

How Do You Start a Restaurant Franchise?

Determining your area’s needs will be an important first step in opening a franchise and will help you narrow down a geographic location.

Find the Right Franchise

Once you determine your area’s needs, you’ll want to find the right franchising company that fits those needs.

One of the advantages of franchising in the restaurant industry is that many companies are listed in public databases and franchising websites, which makes it easier to find a franchise that’s right for you. 

Evaluate the Franchising Requirements 

Most companies will provide detailed information about the franchising process It’s important to gather as much information as possible to know what you’re getting into.

Pay particular attention to things like: 

  • Franchising fees
  • Experience requirements
  • Resources that the franchisor provides
  • Training programs

Some franchising companies are eager to expand into new territories and provide assistance as you get started. That’s usually why you should start a franchise in the first place — it’s easier than going alone. But you’ll still have to evaluate the company’s expectations to determine whether this is a good fit for you.

Apply to Become a Franchisee

Next, you’ll have to go through the application process. This process will vary between companies, but most franchisors will evaluate applicants based on: 

  • Prior experience
  • Current skills and background
  • Personal finances
  • Personal expectations

The application process will usually involve an interview and a “discovery day,” though not necessarily in that order. 

The interview is designed to help the company evaluate whether you’re a good fit for the franchise. At the same time, the discovery day gives you a fuller picture of the company and its operations. Once you’re both comfortable with the franchising arrangement, you’ll be ready to commit.

Obtain Financing

Even though you’re operating as a franchise, you’ll still need to obtain funding. But one of the advantages of franchising in the restaurant industry is that the Small Business Administration offers loans catered to franchise operators, which makes it easier to obtain the funds you need to get started.

Complete the Franchising Paperwork

Once you’ve locked in funding, you’re ready to complete the franchising paperwork and pay any franchising fees the company requires. In some cases, the contracts can be quite lengthy. Have a legal expert review the paperwork to ensure you understand all the terms, conditions, and fine print when in doubt.

Find a Franchise Location

It’s not always easy to know the ideal location for a restaurant. But that’s why you should start a franchise. In many cases, the franchising company has already scouted out locations that would be ideal or can help you determine a location on your own, or they employ real-estate personnel. 

Purchase Equipment

Regardless of whether you purchase or rent commercial space for your franchise, you’ll have to have access to the right equipment. Once again, this is a major reason you should start a franchise since the franchisor can assist. 

Your franchisor can help you determine the equipment you need, but you can also usually get a discount on commonly used items such as freezers, grills, or cash register systems.

Get Training

In most cases, you’ll need the training to get up and running, especially if you’re new to the restaurant industry. Franchise-based training can help you learn the basics to open your restaurant and provide guidance for hiring new employees.

Get Started Today

Once you’ve gone through these steps, you’re ready to launch your franchise. Sounds easy, right? With, it can be even easier. Use the franchise locator tool to search for opportunities in your area. The right restaurant franchise can propel your career forward and provide steady revenue for years to come.

About the Author - Franchise Information

A Trusted Industry Leader Since 1995. Founded in 1995, was one of the first franchise recruitment websites in the world. Today, we continue to be the 'go to' place for people beginning their business opportunity search and the journey of franchise ownership as well as for those already involved in the world of franchising.
Categorized Under: