How To Evaluate a New Franchise Model
When you are looking for a new business opportunity, franchise restaurants are a good place to start. Buying into a franchise allows you to follow a proven business model with strong profit potential, and helps you avoid many common mistakes made by those who choose to go it alone. However, as with any new business, there are both benefits and risks associated with purchasing a franchise. With more restaurant franchise options available today than ever, evaluating the franchise model is an important part of your purchase decision. But, how do you evaluate the franchise model of a new franchise?
Evaluate the Business Behind the Franchise
Since the fast-casual restaurant industry has exploded with growth, new franchise restaurants are popping up each year. When considering the purchase of one of these concepts, it is critical to evaluate the business behind the franchise as there will be limited (if any) franchise history to look on.
If the franchisor already owns several restaurant locations, they should provide financial information documenting how those restaurants are performing in their market, as well as a market analysis demonstrating the need for the product that is being offered. If there are currently any franchisees, you may also wish to spend time in their restaurants to get a ‘behind the scenes’ look at how things are done. Ask questions about the level of support received from the franchisor, the quality of training that was received, and where the franchise stands in its financial projections.
Does the Franchisor Have Experience with Franchising?
When a restaurant decides to franchise, they essentially go from running one business to two. If the franchising team does not have experience running a franchise, this could cause stress on the franchise organization. Specific experience with franchise restaurants could be the difference between responsiveness and support from the franchising team and feeling alone in a franchise “system.”
Bruges Waffles and Frites is Taking a Different Approach to Franchise Restaurants
Bruges Waffles & Frites is one of the hottest new trends in the fast-casual restaurant industry, and serves authentic Belgian cuisine. The company currently owns four restaurants located across the Salt Lake valley in Utah, and is searching for the first franchisee to bring a bit of Europe to their town. Belgian native and co-founder Philippe Wyffels has decades of experience with franchising all around the world and has developed the Bruges franchising system that is strong enough to support hundreds of locations, and founded on principles of collaboration. For more information on opening a franchise restaurant with Bruges, visit our online discovery center.