Opening a franchise restaurant in 6 steps

In 2023, 34% of French people wanted to become entrepreneurs, and 44% of them were considering doing so through a franchise. For more than two decades, the franchise world has kept growing and thriving: steadily rising revenue, plenty of opportunities, all with controlled risk.

You are interested in franchising (and we understand why), you want to open your first restaurant, but you don’t know where to start?

We have put together a short step-by-step guide to help you choose the right brand, plan your budget and avoid all the pitfalls so you can get off to a good start.

What is a restaurant franchise?

The first step is signing the franchise agreement. This is a commercial and legal agreement signed between two parties: the franchisee and the franchisor.

The brand owner, the franchisor, authorizes the future franchisee to use its business model, name, brand image, know-how, and so on.

Of course, none of this comes free: it involves an initial fee and ongoing royalties.

In the restaurant industry, franchise formats are varied. Whether in fast food or full-service dining, the concepts are innovative and well established both in city centers and in business parks.

In France, there is no shortage of options! The sector stands out for its dynamism and growth potential, driven in particular by digital management tools.

Berliner, aiming for 40 restaurants in 2024 👉 See all our customers

Becoming a franchisee: pros and cons

Restaurants are a flagship franchise sector, with no fewer than 312 brands and nearly 9,000 franchisees today.

Opening your own franchise restaurant is a fast track to entrepreneurship. You inherit proven know-how, a strong visual identity and a brand that has already made its mark. In short, you start out with solid foundations and a certain reputation.

The cons:

• The initial franchise fee paid to the franchisor
• Monthly royalties

The pros:

• The initial cost of opening a franchise restaurant is lower than for an independent restaurant
• Support and advice from your franchisor and from a network of experienced franchisees
• Training that helps you run your restaurant day to day and maximize its profitability

That is why more and more entrepreneurs are turning to franchising today. It is a bit like starting your own restaurant without starting from scratch.

Note: a study by Ohio State University found that the failure rate of franchisees is 20% over 5 years, compared with 80% for independently opened restaurants.

Yes, that’s food for thought…

Opening a franchise restaurant: 6 steps to get started

1) Which franchise concept should you choose?

Now let’s get down to business! As you will have noticed, the options in France are vast, and we can distinguish three main types of franchise network:

Fast food franchises:

Fast food, sandwich shops and bakeries are booming, with endlessly replicable concepts such as Bioburger, Père&Fish, Waffle Factory, PB Poulet Braisé…

Full-service restaurant franchises:

Restaurants and brasseries serving authentic French cuisine, like these very trendy brands: Indiana Café, Les 3 brasseurs, Ninkasi, Au Bureau, Paris Society…

Themed restaurant franchises: These restaurants offer a strongly defined concept. A few examples: Antonio et Marco for Italian cuisine, or Nachos with its Latin American influences.

2) How do you choose a franchise?

To make the right choice, a market study is a must:

• Look at the personal contribution required and the entry fees.
• Research the brand’s financial strength and make sure its ambitions and values match yours.
• What is the mindset of the other franchisees and what is their experience with the brand? You want to be sure you are joining a strong, supportive team.
• What training does the franchise offer? It is a real asset! Find out what it covers.
• Check that the network coordinators are responsive and attentive, and that communication works well. The quality of network support is crucial.

Above all, don’t overlook the financial side. Carefully calculate all the royalties and make sure they match the services and support you will receive in return. A successful franchise is first and foremost a balance between investment and profit.

3) Setting a budget for your restaurant: the keys to a good start

First, look at the entry fee. This amount varies from one franchise network to another and ranges from €50,000 to €150,000 for the major brands.

But that’s not all! You also need to consider the overall investment, which covers:

• The entry fee
• The royalties paid to the franchisor
• The cost of the premises and the fit-out
• Staff
• Marketing and communication (website, social media)
• The value of your inventory (to be estimated as accurately as possible)
• Estimate all the financing you need to open a restaurant.

4) Draw up a financing plan

You can ask other franchise networks for information. There are many trade shows dedicated to restaurant franchising, such as Franchise Expo in Paris.

Ask your franchisor too. They can estimate the overall investment needed to open a restaurant based on their experience with other locations in the network.

Our advice: draw up a three-year financing plan, with a safety margin for the unexpected, covering:

• Your income
• Your expenses
• Your profits

Make sure your projections are solid and that you have the capital you need.

5) Find the perfect location for your restaurant

It’s time to find the ideal spot to open your restaurant. The location you choose will be key to your success and will make all the difference to your revenue.

To find THE golden spot, you will need to consider several criteria:

• Know your customers inside out,

• Watch the competition,

• Assess how accessible the location is,

• Monitor traffic (pedestrians, bikes, cars),

• Scout the surroundings (are there schools, offices or shops nearby?)

You can study other franchisees to see what works best. Don’t hesitate to ask your franchisor for advice (after all, your success is their success too!).

Some even have real estate agents who specialize in opening new franchise locations.

Note that you will also have to meet the location criteria set by the franchise.

6) Master the key ratios

For any future franchisee, mastering the ratios is crucial: what is the average spend, the food cost, the waste rate? In the restaurant industry, controlling food cost is of the utmost importance, and this is done in particular by formalizing product recipe cards.

Article 👉 How to boost your profitability with recipe cards? Free tool

These kitchen recipe cards detail the required ingredients with their exact quantities, the preparation steps and the purchase cost from suppliers, and let you calculate the cost price of each dish.

With these recipe cards, franchisees can reproduce all of the franchise’s recipes in terms of ingredients, presentation and quantities, ensuring consistency both in the kitchen and financially.

Which inventory management solution for a restaurant franchise?

Managing your food cost: the key to success

As a future franchisee, you now understand that managing your food cost in real time is crucial to your restaurant’s profitability. The Yokitup inventory management solution gives franchisees an overview of all their ratios. With a 100% customizable dashboard, you focus on your goals and get an accurate view of your food cost in real time.

An intuitive, smart tool for your teams

With our forecasting algorithm, you order just what you need. Raw material purchasing takes just a few clicks. Simply follow the recommended quantities to get it right: the ideal way to reduce losses and avoid food waste.

Your teams save valuable time thanks to simplified inventory entry in our mobile inventory management app. No more mistakes!