Blog for restaurants and gastronomic entrepreneurs

Is your restaurant ready for the next step?

Is your restaurant ready for the next step?

Moving your restaurant to the franchise model is a step that will undoubtedly benefit you: from the opportunity to expand your company, to be able to consolidate its position, to generating strategic alliances with suppliers and partners (which of course leads to an increase in income ). But representing such a brilliant opportunity, it also requires great effort. To make this task simpler, we provide you with 4 key points that you should know before starting your franchise project.

Know what you need to make it a franchise

In the words of the consultant Juan Manuel Gallástegui (from Gallástegui Armella Franquicias), the four key characteristics for a business to become a franchise are:

  • A successful concept.
  • That has been tested.
  • Consolidated.
  • With a market niche.

And as a bonus: avoid physical and human obstacles, that is, that the success of your business does not depend on a particular person, as that will be a drag when trying to replicate your business model. Analyze how prepared you feel in terms of these aspects so that you can continue with the expansion of your business.

Define your business model

This implies clarity and punctuality in the processes that your business follows. We can understand it as everything that leads to your business being profitable, that is, generating income and benefits. For this, it must be detailed, from the aspects related to the offer of products and services you offer: how they should be offered, what tools are used, where do you get those tools ... to the characteristics of your premises: visual identity issues, such as colors and the organization of products, and of course everything related to financial matters: initial investment, prices, permits ...

This business model is a very important aspect to develop a franchise and, as such, it must be stipulated in writing through manuals (operational, image, fiscal, etc.), to transmit in the clearest and most precise way all the information to those interested in joining your franchise and thus avoid problems when recreating your business in another area.

Create a Brand Use Manual

To achieve this, it is important to faithfully document the details of your success, so that potential stakeholders in acquiring your franchise know how to address the market segments that you have captivated.

Remember that the franchisee is only interested in one thing: that your product is "salable." To prove it, remember and think about how you became successful: did you use advertising material? Did you offer any exclusive promotions? Was your customer service memorable? Once you do that analysis, you can create your Brand Use Manual.

As you may have already imagined, it is important that in this document you describe the details of the communication, marketing, marketing, sales promotions and other details that guarantee to be able to emulate the success of your restaurant in the new possible franchises.

Strengthen the legal aspects

A fundamental part in any commercial procedure will always be the legal aspects. For this reason, we recommend that you approach the Industrial Property Law, which in Article 142 defines what a franchise is. Some key points in this regard are:

  • The brand use license.
  • Technical assistance from the franchisee to the franchisors.
  • Uniformity in services or goods and operational, commercial and administrative methods.

These factors will be stipulated in the Franchise Agreement, which must be precisely defined in terms of the rights and obligations of both parties.

Close ties with suppliers

It is always good to have allies that make it easier for you to provide your franchise business. In addition to familiarizing you with their service and the products they offer, they can also reach beneficial agreements for both of them ... all, in order to increase profits and achieve stability in your franchise.

After considering all these topics, we know that you will be able to take your business to the next level. But if you have any other questions on the way ... do not hesitate to approach us!