Franchising a restaurant is one of the most effective ways to expand the business and to increase the profits wherein the franchisor gives the licence to Franchisee to use their trademark, business model, and sell products under their brand name.

How Franchising Can Help the Restaurant Business Grow?
Most of the time, people believe that franchising a restaurant would be a very arduous process. However, it is not the case, in fact taking the franchising route can help your restaurant business to grow exponentially.

Having said that, it may take a lot of time and effort to franchise a restaurant, nevertheless, it is not a complicated process. If you are keen to know about how to start a franchise restaurant or want to grow and expand your restaurant business through franchising, then you are supposed to consider certain steps that can guide you through the whole process.

Steps to franchise a restaurant business

Current Model Evaluation

Before coming on to how to open a franchise restaurant, evaluating your business model is a good idea after which you can probably look out for a business partner. This would help you know if your business concept is scalable and if it can be standardized.

Robust Process

You are required to design a robust and efficient process if your business concept is replicable.

This would ensure consistency across all the outlets. Some aspects to be taken into consideration are Sales Reporting and Tracking, Stock and Inventory Process, Supply Chain Management, etc.

Trademark and Logo Registration

Make sure that your brand’s logo is already registered and a trademark has been acquired as you would be permitting someone else to use it. Registering for a trademark is a key step if you are thinking of Franchising a Restaurant.

Cost Estimation
Estimating a cost and preparing an investment plan for franchise restaurants is another crucial step. The top restaurant franchise business models usually regard accurate cost estimation as the key to their successful business.
Cash Flow And Financial Projection

The cash flow and financial projections are based on the current and the past sales of the restaurant. The franchisor must create a cash flow for the revenues based on the number of orders per day and multiply it by the average ticket size.

Also, predict the revenues for the first few years or the tenure of the franchise.

Brand Profile

Creating a brand profile as this will help in giving a better understanding to the Franchisees. The document should mention the brand’s vision and list out every detail such as the schedule of when to open the new outlet.

Also mention the type of support they can expect from your end after opening the outlet.

Franchise Agreement

Make sure to have a registered agreement as this step will safeguard the right of both franchisee and franchisor. The agreement should mention details such as payment, tenure, schedule, plan, royalty, etc.
Training

Another important step, training of the staff will help maintain the standards of the outlets as the original franchise restaurant. The franchisor should arrange hands-on training of the staff at least a month before the opening of the franchise outlet.

In some cases, franchisors employ their old staff to the outlets to train the new employees.

Marketing and Advertising

The franchisor can lend their support to the franchisee in marketing and advertising by guiding them and making them understand how to execute marketing activities, especially in the initial days. Also, it makes sense to provide the franchise outlets with brand-specific logs and templates to ensure better consistency.

Support

It is essential for the franchisor to spell out what kind of support they would be offering to the franchise. The details about the support have to be mentioned in the agreement as well to avoid any sort of confusion.

Infrastructure Development, training and supplying raw materials are the common types of support given to the franchise restaurant.
For a restaurant business, franchising can be classified as one of the most successful and practical paths to enter the Middle East market, in fact, most of the time, foreign brands think of franchising as the most preferred route to this market. This is because there are many advantages of franchising a restaurant in Middle East countries like Dubai and Saudi Arabia.

Firstly, the Middle East region is the global hotspot for business franchising because of the interesting economic climate. Hence, many foreign brands do not mind investing a huge amount of their capital in Middle East countries.

According to the experts at Global Intelligence Alliance, the GDP for the Middle East is around $1.4 trillion. Besides this, there is also a population of 315 million people in the region, hence the Middle East can be chosen for new franchising ventures especially in the food, hospitality, beverage and retail business.

Another fascinating point related to franchising a restaurant in the Middle East is the affluent and substantial customer base of this region hence, it is a good idea if you are thinking of having franchise restaurants in Saudi Arabia.

Why YRC to develop a restaurant franchise model?
At YRC, we help you design restaurant franchise models based on your organizational structure and your departmental strengths. We also help the brand recognise their USP's and that would ultimately help them sell their franchises in a better way.

Our staff and consultant are very supportive and take franchise advice very seriously and a top priority.

We take into consideration various attributes and then our franchise business consultants would assess the type of model. Your Retail Coach believes that developing a franchise model is one of the most important aspects when it comes to the expansion of business through the Franchise route.
Source from: https://www.whatech.com/bpm/blog/697468-how-to-franchise-a-restaura...