In 2023, 34% of French people wanted to become entrepreneurs, and 44% planned to do so through franchising. For over two decades, the world of franchising has continued to grow and prosper. Sales are constantly rising, opportunities abound, and all with controlled risk.
You're interested in franchising (and we understand you), you want to open your first restaurant, but you don't know where to start?
We've put together a short step-by-step guide to help you choose your sign, plan your budget and list all the pitfalls you need to avoid to get started.
The first step is to sign the franchise agreement. This is a commercial and legal agreement signed by two parties, the franchisee and the franchisor.
The owner of the brand, the franchisor, authorizes the future franchisee to use its business model, name, brand image, know-how and so on.
Of course, none of this is done for free, but for an initial cost and a fee.
In the foodservice sector, franchise formats are varied. Whether it's a fast-food franchise or a traditional restaurant, the concepts are innovative and equally at home in city centers or business parks.
In France, there's no shortage of opportunities! This sector stands out for its dynamism and growth potential, thanks in particular to management changes linked to digital technology.
In the flagship sector of restaurant franchising, there are currently no fewer than 312 brands with almost 9,000 franchisees.
Opening your own restaurant as a franchisee is the royal road to entrepreneurship. You inherit recognized know-how, a strong visual identity and a proven brand. In short, you have a solid background and a certain notoriety.
Disadvantages:
The advantages:
That's why more and more entrepreneurs today are turning to franchising. It's a bit like setting up your own restaurant without starting from scratch.
Note: a study by Ohio University reveals that the failure rate for franchisees is 20% over a 5-year period, compared with 80% for a restaurant opened on its own.
Yes, it makes you think...
Now let's get down to business! As you'll have noticed, the possibilities in France are vast, and we can distinguish three major franchise network concepts:
Fast food franchising :
The fast-food, sandwich and bakery concept is booming. With infinitely adaptable concepts such as Bioburger, Père&Fish, Waffle Factory, PB Poulet Braisé...
Traditional restaurant franchising :
Restaurants and brasseries serving authentic French cuisine, such as the trendy Indiana Café, Les 3 brasseurs, Ninkasi, Au Bureau, Paris Society...
Theme restaurant franchises: These are restaurants offering a very distinctive concept. Examples include Antonio et Marco, with its Italian cuisine, and Nachos, with its South American influences.
To make sure you're on the right track, it's essential to do some market research:
Above all, don't neglect the financial aspect. Carefully calculate all royalties and make sure they correspond to the services and support you'll receive in return. A successful franchise is all about balancing investment and profit.
The first thing to consider is the entry fee. This amount varies according to the franchise network, ranging from 50,000 to 150,000 euros for the big names.
But that's not all! You also need to consider the overall investment to be made in :
You can also find out about other franchise networks. There are many trade fairs dedicated to franchising in the catering industry, such as the franchise expo in Paris.
Ask your franchisor for more information. He can estimate the overall investment required to set up a restaurant, based on his experience with other outlets in the network.
Our advice: Draw up a three-year financing plan with a safety margin for unforeseen events on :
Make sure your projections are solid and that you have the necessary capital.
It's time to find the ideal spot to open your restaurant. The location you choose will be the key to your success and will make all the difference to your sales.
To find THE golden spot, you'll need to take several criteria into account:
- Know your customers inside out,
- Observe the competition,
- Assess the accessibility of the site,
- Monitor traffic (pedestrians, bicycles, cars),
- Scrutinize the surrounding area (are there schools, offices, stores 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 specialized in opening new franchises.
You must also respect the location criteria specified by the franchise.
For any future franchisee, controlling ratios is crucial: what is the average ticket, the cost of materials, the loss rate? In the foodservice sector, controlling material costs is of paramount importance, and this is achieved in particular by formalizing product recipe sheets.
Article 👉 How to boost profitability with recipe cards? Free tool
These recipe cards detail the ingredients required, with precise quantities, the preparation steps, the cost of purchasing from suppliers, and calculate the cost of each dish.
Thanks to these technical data sheets, franchisees can reproduce all the franchise's recipes in terms of ingredients, presentation and quantities, ensuring consistency in both culinary and economic terms.
As a future franchisee, you understand that real-time control of your material costs is crucial to guaranteeing the profitability of your restaurant. Yokitup's inventory management solution gives franchisees a global view of all their ratios. Thanks to a 100% customizable dashboard, you can focus on your objectives and benefit from a precise view of your material costs in real time.
Thanks to our forecasting algorithm, you can order just what you need. Purchasing raw materials is just a few clicks away. All you have to do is follow the recommended quantities to make sure you don't make a mistake - the ideal solution for reducing losses and avoiding food waste.
Your teams save precious time with simplified inventory entry via our mobile inventory management application. No more mistakes!
Make an appointment now with our experts to set up the best inventory management strategy for your franchise.
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