Things to Consider when Franchising your Restaurant

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As your restaurant begins to flourish you might be interested in franchising your business to allow it to grow and expand. As franchise law is very complex and confusing, LawPath can get you in touch with three highly experienced franchise lawyers who work on a fixed fee basis who can assist in helping you draft your franchise agreements and more.

Franchising your restaurant

Why should you consider franchising?

There is a multitude of benefits as to why you would consider becoming a franchisor, which include:

  • Allowing your business to grow at a rapid rate;
  • Not having to be worried about the daily operation of each outlet;
  • The franchisee having the responsibility to make sure the outlet is successful instead of you, and they will be inspired to do so due to them being the owner; and
  • The franchisee will be the one investing most of their manpower and funds into the outlet, leaving you to focus on the stores you still own.

Am I ready to franchise?

If you have determined that franchising seems desirable for you and your business in order for a way to grow and expand, you will need to determine if your business is ready and what opportunities are available. Some of the biggest food brands in Australia, like McDonalds, Coffee Club and Mad Mex have relied heavily on franchising to expand across the nation, but have only done so with proper planning and adequate research. Before making the leap, you should first consider:

  • The cost involved in franchising your business, which can start up to $50,000 and work its way up to $100,000 in costs;
  • If your business is marketable and distinctive enough to be replicated successfully and make a profit;
  • Seeking advice from a consultant on whether it is viable for your business;
  • Who your potential franchisees are and whether they would represent your business in a positive light; and
  • Drafting an operations manual so your business’ policies are replicated and adhered to in every outlet for consistency.

Now it’s time to franchise

When you have determined that franchising will be a feasible and profitable venture for your restaurant, it is now time to get in contact with a franchise solicitor. As franchise law is a complex area of law due to its ever changing legislation, it is recommended to hire an experienced lawyer. The lawyer will be able to assist in drafting a franchise agreement and addressing any legal concerns you might have.

LawPath can assist you in franchising your business by getting you in touch with three experienced franchise lawyers who work on a fixed fee basis so you know exactly what you’re paying and the value that you will be getting out of it.

Ready to take the next step? Contact a LawPath consultant on 1800 LAW PATH to learn more about customising legal documents, obtaining a fixed-fee quote from our network of 600+ expert lawyers or to get answers to your legal questions.

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