You are buzzing with excitement because you’re the new kid on the block! Congratulations are in order. Well, realizing your passion by becoming a restaurateur counts for something, right? But wait, what steps did you take to open a quick-service restaurant or QSR franchise?
Essentially, preparation is the key to any venture. If you’re considering opening a hot chicken restaurant franchise, here’s how to go about it:
1. Make that Call
Once you’re narrowed your search and identified a franchisor, contact them directly. The initial call allows a franchisor to detail their investment offer. It also provides an opportunity for them to know about you, your desires or your interest in the business. Some of the basics the call may cover include:
- The type of restaurants the franchisor offers
- Typical costs of starting each type of QSR
- Franchisee qualification requirements
- Timeline for opening a restaurant
2. Conduct an Initial Assessment
Both parties need to get to know about the opportunity in question. That way, you can read from the same page. Reviewing all the details allows you and the franchisor to determine whether either party is a good fit.
For instance, the franchisor would be keen to establish if you’re a good match for the organization’s culture. On your part, it might help you find out if you feel comfortable about making the next step. Be sure to go through the franchise disclosure document (FDD) at this stage to understand all the fundamental details and rules of engagement with the QSR franchisor.
3. Get Your Finances in Order
To operate a hot chicken restaurant and hopefully succeed, you need to make a significant financial investment. Most franchisors also require you to meet set minimum requirements to qualify. These include liquid capital and net worth requirements, which can run into millions. Unfortunately, such restrictions can create barriers to entry. But typically, the upfront costs would include:
- A franchise fee- lump sum payment
- The initial investment to cater to equipment, signage, food inventory, rent, furniture, outdoor fixtures, supplies, etc.
- Training costs, utility deposits,
- Insurance and licenses
- Opening advertisements
4. Perform Your Due Diligence
Do your homework by researching the QSR franchise you’ve selected. You can use one approach to talk to current franchisees about their experience with the franchisor, including the bottlenecks they face. Get to understand how long it might take to break even and how much you need to set aside for wages, among other costs. By learning about their expenses, earnings, opportunities and threats, you can better make an informed choice.
Once you’ve done the legwork, you can prepare and present a financial projection to the franchisor. Some franchisors may provide a standard format to use. Consider roping in a financial advisor to nail this step. You’ll need to review your projections with the franchisor to ensure that everything is up to snuff and that you have realistic expectations.
5. Prepare for Training Day
Typically, you need to attend training sessions with the firm’s specialist to get an inside scoop on the basic operational guidelines. Such training may include:
- An overview of the franchisor’s restaurant layout
- Employee positions and responsibilities in a franchise
- The operational systems in place
- Types of products on offer at an outlet
The overview provides you with a better understanding of how to replicate the franchisor’s experience in the business you plan to operate. After all, your brand would reflect the overall organizational culture.
6. Make some Discoveries
Each franchise has its variation of discovery day. But generally, it’s like a meet and greets, whereby you get to meet the faces behind the franchise. These include the firm’s heads of departments. The meeting allows you to:
- Make inquiries and seek clarifications regarding any issues you might have
- Learn about the support you’ll receive
- Review financing or other initial costs
- Tour the franchisor’s corporate or regional office
You can sign the franchise agreement if all the parties find common ground. From here on out, you can launch your franchise business.
7. Opening Day
All the planning leads to this: your grand opening. Your dream has finally become a reality. The good news is you have a franchisor to guide you through the process. A franchisor can help you identify feasible sites, find approved equipment and vendors, secure permits, etc.
Most importantly, they can hold your hand by providing ongoing support and training. By leveraging their experience, you can open your door for business and be on your way to breaking even and turning a profit.
But remember, opening a hot chicken restaurant or QSR franchise is the first step in your journey. Get to work from day one. After all, you hold the key to your business’ destiny.