When purchasing a restaurant franchise, there are a number of expectation from the franchisee that the franchisor can expect from you. When you have satisfied all the pre-expectation you as a franchisee can expect services from the franchisor. We talked about your expectations from the franchisor in question four, “As a franchisor, what would expect from me?” In all the of the Top Five Questions, I want to make sure once again that you do your part and being diligence in gathering information. Even visiting existent franchises that are in operation. Make appointments with the operator and get all of your questions out of the way before investing capital.
In question five, we are going to look at, “As a franchisee, what support can I expect from the restaurant franchisor“?
All restaurant franchise companies offer quite variety of programs in terms of training and support services. What is the standard you should expect from a quality franchisor?
There are going to be variances from industry to industry depending the nature of the business. However, you should expect to receive guidance/ expertise for all the factors that are important in opening a new location in any restaurant franchise.
Here are a few of common areas you could expect:
Location assistance should include factors for locating a good site and checking its potential. There should also be guiding principles for the general terms of the lease agreement. There are standard for this business in this type of a locations. Support should include a site review by the franchisor of any proposed site and typically assistance in the negotiation and execution of the lease.
Construction assistance should include detailed instructions outlining all the items that need to be ordered and assembled to build a business, as well as sources for each item. Support should include direct ordering and construction assistance and possibly turn-key unit delivery to the new franchisee.
Marketing Assistance should include a complete marketing analysis for a new business that covers all activity. You should be able to see at least the first three months of operation. This plan should include the roll-out timing of the plan.
The initial training should cover all facets of the operation of the business unit. Training should be giving you enough repetition and time so a franchisees can operate from the day you open. Support would involve the franchisor sending an experienced operation’s staff person to assist in the on-site for at least 3-5 days to ensure the proficiency exists.
The initial training could also cover all the other areas associated with the operation of the business. These could include aspects of the business related to recruiting and retaining employees, back-office bookkeeping, and other financial tracking.
These items listed above are just a few of the essentials. You may also need support in relation to dealing with governmental agencies for permits and signage. A more complicated business like a restaurant is also going to have many health-code compliance opportunities.
Additionally, talk at length with other franchisees of the system regarding support issues. You need to examine carefully how prepared they were to operate the business after the support was delivered by the franchisor. Ask them questions, find out if there are any surprises. Ask if they would have done anything differently now that they’ve gone through completed process. Get an idea of how prepared they felt both before and after their location opened. Remember, there are going to some minor items that happen, and it is different for every franchisee. Then I would think you’ve probably found a franchise that’s focuses on providing great support to their new franchisees.
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