Restaurant Franchise or Independent Restaurant?

There are many pros and cons about buying a restaurant franchise restaurant and at this point in your

restaurant exploration we think you should start exploring the possibilities. Looking at the franchise side of the equation you need to evaluate the following:


1. The biggest pro is that you do not have to come up with your own brand and already have a built in name when you open your restaurant.

2. The right franchise in the right area can be very profitable.

3. The training the franchise gives you starts you off on the right foot. Usually you have a proven menu, staff training manuals and policies and procedures are already set up for you. On-site training also gives you an opportunity to learn hands on in one of the units already open.

4. Marketing is already in place from the franchise. Advertising spreads and proven tactics to get people in the door is ready for you, but it does come at a cost.

5. There is always support available when you run into trouble.


1. There are a lot of rules and regulations with franchises.

2. Many times you have no control over the menu or even the restaurant design.

3. The fees associated with franchises are generally higher than you can obtain on your own.

4. A portion of your sales or profits (some times as high as 6%) will go back to the franchisor.

5. If you break a franchise rule or regulation you can get fined or lose your franchise all together.

Although going out on your own is certainly more advantageous if you are an experienced operator the ease of restaurant franchise opportunities may be your best option. Keep in mind though, all franchises are different and have different rules, regulations, structures and fees. Make sure you do your homework. Our next article will look at what to look for when looking at franchises.

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