Written by Efranchisesale Staff Friday, 13 August 2010 09:30
Buying a franchise restaurant is one of the most common ways for would-be entrepreneurs to enter the world of business ownership. With traditional restaurant ownership being one of the riskier ways to start a business, with restaurant franchises just the opposite is true. They may be more expensive than many other types of franchise businesses, but that is only because the return-on-investment kicks in right away and the process of buying one is not extremely difficult.
Here are some simple steps to put you on the road to buying a franchise restaurant.
Before you buy a franchise restaurant, you will need an accountant, an attorney and money to invest in the business. Once you decide on the type of restaurant franchise you want, you will find there are several online resources and franchise FSBO directories that will help you find the right franchise for your budget and geographic area.
Request a franchise application and spend time reviewing the franchise documents with your attorney. Your accountant can help you better understand the franchisor’s financial statements. Now is the time to ask questions about company training and marketing support.
Interview some current franchisees and ask them about the day-to-day activities of the business, if they are as profitable as they expected to be, and if there were any unexpected problems in dealing with the franchisor.
Evaluate the target market for your proposed franchise restaurant, and consider how many similar or competing restaurants are located in the area. Ask yourself if any recent changes have occurred in the community where you want to open the restaurant, or if anything would cause a decrease in potential customers.
Check with your franchisor about financing options. You will need to know how much working capital you will need to operate the business as well as specifics about start up costs. Many franchisors will make buying a franchise restaurant very attractive with seller financing.