5 Reasons Why You Should Franchise Your Restaurant

Restaurant owners often operate under the constant pressure of having to balance growth while also having limited cash flow.

So, what is the best way to grow a restaurant business without sacrificing resources?

Instead of wasting time on traditional financing or struggling to open new locations one at a time, franchising your restaurant might provide you with a viable solution.

Here are the 5 reasons why franchising your restaurant just might be your best option.

Reason #5: Positive Trends & Industry Forecast

Now more than ever, consumers want to purchase goods and services they can rely on. And food products are no different.

According to the Bureau of Labor Statistics, the number of consumers eating away from home has increased in the last few years. This means that more people are looking for restaurants that offer value. It also means that the more franchise locations you have, the more you will be able to provide them with that value.

In correlation to more people eating out, the industry is showing a positive outlook for food service-related franchises. According to the 2017 International Franchise Association, table and full service restaurants are expected to see the fastest growth among the top 10 franchise business lines this year. And quick service restaurants are expected to come in second in growth.

Both factors mean that your restaurant currently has a high level of potential to succeed as a franchise business given the expected demand.

Reason #4: Offer the Consistent Quality Customers Look For

With consumers being more mobile than ever before, they have more opportunities to search for goods and services that offer value. Regardless of where they are or where they are going, food products are a big part of this equation.

If someone buys a smoothie down the street from where they work or live, they will want it to taste the same if they buy from the same shop hundreds or thousands of miles away. People have come to expect a consistent level of quality from the stores they recognize. The last thing they want, or need, is for a beloved product to taste completely different from what they usually expect.

By franchising your restaurant, you can provide your customers with consistent quality. That way they’re never disappointed or surprised no matter which of your restaurants they order from.

Reason #3: Expand Your Brand

If you only have one location, it will be a constant struggle for you to gain recognition with your customers, the media, and the masses.

In other words, the more locations you have, the easier it will be to gain brand recognition. But how do you find the time and resources to open enough locations so that you can raise your business to “household name” status?

While you always have the option to open only one location at a time, it will cause significant delays in growing your brand if you just open one every few years. In fact, most restaurateurs rarely get past opening their first restaurant.

However, by franchising your business, you can grow more quickly to become a more recognizable brand with your customers. Since franchisees will be responsible for their locations, you also won’t need the hands-on approach it would take if you were to do it on your own.

Reason #2: An Easier Solution to Raising Capital

After the recent economic crisis, businesses have found it increasingly difficult to finance their operations with traditional funding.

The new, stricter requirements often make it impossible to qualify, which only causes business growth to stall. It’s a vicious cycle that business owners find themselves in. And there’s usually no easy solution to make it stop.

However, the franchise model makes it easy for business owners to raise capital. Franchisees pay a designated upfront cost, called a franchise fee, and they furnish all of the required capital to open, run, and operate their restaurant franchise.

As a franchisor, you will also collect royalties on a regular basis, which can continue to fund your business without the need to seek traditional financing.

Reason #1: Managing Your Employees

As a restaurant owner, you know that finding, training, keeping, and managing your staff and employees is often the most challenging and difficult task of running your food service operation.  The cost of time, money, and stress can wear an owner down very quickly.

When you franchise your restaurant, you are passing the daily responsibility of managing your employees and staff to your franchisee. Each franchisee will now be responsible for hiring, training, and managing their employees.  You will certainly be supporting your franchisees, but you will not be the person putting the extra hours in at the restaurant when one of your employees decides to not show up.

Should You Franchise Your Restaurant?

If you’ve taken a serious look at the reasons why you should franchise your business above, you’re likely left with some concerns or questions about how to make it happen.

But there’s no reason why you should be left to figure out everything on your own.

At Big Sky Franchise Team, we’re experts at helping business owners like you go over their options. We offer a free, no obligation consultation to help you decide what will work and how franchising can help you propel your business.

Visit us here or call us at 855-824-4759 and we’ll be happy to answer any questions you may have about franchising your restaurant.


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