With eager restaurant-goers looking for more places to enjoy a delicious meal with friends post COVID, investors should see this as a great business opportunity that could offer the financial freedom they’ve always wanted.
A recent study by the International Franchise Association (IFA) shows full-service restaurants like Scramblers are bouncing back to pre-COVID numbers and project a 2.5% increase this year. The IFA predicts this sector will continue to rise as more people return to normalcy.
So, if you’re considering becoming a restaurant franchise owner, now is the best time to jump in. However, you will need vital franchise training and restaurant franchise support if you don’t know much about the industry or how to get started.
Here are some critical questions you should ask potential franchisors before choosing your next investment.
WHAT KIND OF SUPPORT DOES A FRANCHISE PROVIDE?
Franchises are structured to ensure the owner’s success, providing several support layers from site location to marketing. Here are some areas of restaurant franchise support Scramblers offers franchisees as they grow their new business.
- Prime location selection: Scramblers maintains close communications with a tight network of developers around the country, so prime locations are at the forefront of all building plans before ground breaks.
- Build-out support: It’s important to note that most franchisees are involved in the build-out process, but no prior experience is necessary. Scramblers field construction managers assist with meeting the design specs and local regulations. The pre-chosen color palettes and personal attention to detail inside the space make Scramblers warm and inviting for guests.
- Comprehensive training: All franchisees will need training along with the unit manager. This two-week period allows the owner and manager to understand how to operate the business efficiently with proven operational procedures and merchandising techniques.
- Operations manuals: Having a go to source of information for all your operations questions is essential when starting. This complete set of manuals will help you run the daily operations of your store.
- Opening support and services: At Scramblers, we pride ourselves on offering experienced trainers and a franchise coach who will visit your site periodically to consult with you on how you’re operating your store. These mentors will also be available by phone for an extra layer of support
HOW DOES A RESTAURANT FRANCHISE WORK?
With a proven restaurant concept and successful business systems in place, franchisees are stepping into a support system that has helped ensure the success of many investors before you. First, investors must prepare for the costs of starting their own business and understand what the fees typically cover.
Franchise fee: The first fee you must consider is a franchise fee upon contract signing. The franchise fee includes the rights to use the business name and system. Training, manuals, procedures, and assistance with site location are typically included.
Royalty fees: Royalty fees are payments taken as a percentage of sales. Another option is a sliding scale or fixed amount agreed upon by both parties. It’s essential to ask how your franchisor expects to receive their royalties so you can prepare accordingly.
Advertising fees: Typically, these marketing funds stay in an account for national and regional promotion for the franchise chain. As you may know, advertising can be costly and understanding the market and how to reach your target is difficult. Having this taken off your plate as a business owner is a huge relief and helps keep your brand messaging on point.
Scramblers offers our investors full restaurant franchise support, starting with a two-week training program where they teach operational procedures, payroll management, and other skills in a natural working environment. Scramblers also offers marketing support with a plan, in-store signage, flyers, coupons, build-out support as your shop takes shape, and help opening your business.
Each franchise is different, but Scramblers helps franchisees with extra support mentioned earlier, including site selection, on-site training, coaching, and ongoing support and services.
HOW DO YOU FRANCHISE A RESTAURANT?
There are several steps you must consider if you choose to franchise a restaurant on your own. If you’re not working with an established franchise like Scramblers, you should seek legal help in doing the following to ensure the proper protocols are in place:
- Preparing your Franchise Disclosure Document (FDD) and operations manual
- Issuing and registering your FDD
- Protecting your intellectual property while developing a franchise plan and budget
- Creating a sales strategy
GET STARTED WITH SCRAMBLERS
If you’re ready to embark on a restaurant franchise journey, Scramblers offers a promising investment opportunity. With 30 years of restaurant experience, your business will be on the path to eggs-cellence with us. Get started today!