The franchise of restaurants and cafes is one of the cheapest and easiest ways to create your own business. There is no need to start from scratch, invest huge amounts of money in promotions, so that the consumer begins to recognize the brand. Everything is done and ready to work now. Acquiring a franchise business is a win-win for newcomers to the industry.
A franchise is ...
Literally, the term "franchise" means the transfer of the right to use the name of the company, brand. In addition to the name of the franchisor, hereinafter referred to as the franchisor, the buyer also transfers the principles and production technologies, the contacts of suppliers and the terms of cooperation with them, a business plan developed and tested in practice, and the development of marketers. The buyer, or the franchisee, is also not obliged to engage in brand promotion and advertising, the franchisor has all these functions.
Thus, the franchisee becomes a part of a large developed company and at the same time works as a private entrepreneur. This is a very reliable and fairly profitable type of business.
The franchisee pays the franchisor a certain initial fee for the purchase of the franchise of a bar, restaurant, dining room or any other establishment, and then gives a clearly defined percentage of sales. Franchised companies rarely can not stay afloat, most of them easily overcomes the five-year line of work, developing and bringing considerable profit.
Opening a franchised restaurant or any other establishment is quite simple and does not require large financial investments. If in doubt, then you should familiarize yourself with the main advantages of this business:
- The probability of failure tends to zero. The business scheme has already been invented, built, tested in practice more than once. The system is guaranteed to be profitable and does not require outside intervention. No need to experiment, learn from mistakes. All defects have already been corrected to you. That is, this is the best option for those who are still little versed in the business field and do not know how and how to win the consumer.
- Recognition. The brand has earned its popularity with consumers for more than one year, a lot of work and finance is being invested in this process. The franchise provides for use a name that everyone knows and which is already unconditionally trusted.
- Full support The franchisor is ready to support the development of his own brand in every possible way and is in no way inclined to the fact that an institution with his name will receive notoriety. Therefore, representatives of the franchisor provide all kinds of assistance and support to the franchisee, providing him with information about suppliers, procurement, service principles, technical requirements and more.
- Simplification of credit channels. Today, banks are in no hurry to issue loans "unknown to anyone," especially for large amounts for business development. But if a representative of a famous brand addresses, then the situation is fundamentally changing. And the fears of the bank are left behind. Moreover, the franchisor can always act as a guarantor in a credit transaction.
Of course, no matter how beautiful and cloudless the idea of creating a franchise business for a chain of restaurants, bars and cafes looks, there is always room for disadvantages. There are not so many of them, just two, but still:
- Addiction . A franchise entrepreneur does not have the opportunity to implement his own ideas or change key business areas. The franchisor sets the course for the development of the franchise, while the franchisee must follow it steadily. Naturally, if something goes wrong with the franchise buyer and the profit does not come, then all participants in this business suffer, but if there is a financial upswing, absolutely all representatives of the eminent brand will receive a reward.
- Liabilities . One of the main obligations is the payment of royalties, that is, interest on profits. It should be regular and, naturally, not equal to zero. The second important obligation is compliance with all conditions of the transaction. By purchasing a franchise, the buyer agrees to provide a specific service for consumers and business workers. There were situations when the franchisee could not provide the established conditions and level of service, and then the franchisor was forced to close this enterprise.
Before buying a franchise, you need to familiarize yourself with the conditions that the franchisor offers, and, of course, find out the size of the down payment and royalties. For example, the franchise of a fast food restaurant Burgerclub is provided without a down payment, you only need to pay regularly 2 percent of the proceeds. These are very loyal and favorable conditions. That's because Burgerclub is a regional brand.
But global brands may request a down payment of up to about a million rubles. A world-famous restaurant costs a little more, and the percentage here will be much higher. On average, world-famous companies charge royalties at around 6 percent of revenues. Naturally, the price for a restaurant franchise is not indicated in national currency, but in dollars, so you need to pay attention to the rate and, if possible, agree with the franchisor about the possibility of fixing it.
Registration of LLC or IP
To open an official business, it is necessary to determine what it will be in the future - a single point or network of establishments. If the restaurant franchise is bought at one point, then it is better to choose a private entrepreneur, and in the case of a long-term strategy aimed at development and expansion, you need to open an LLC. To do this, you must register, register a legal address, open a bank account and pay the state fee.
What to do next? It is necessary to determine the format of the cafe and choose a room for it. It can be a small closed place or an open street area. It all depends on the type of institution and personal preferences. For example, it is better to realize the franchise of a beer restaurant indoors, and in the warmer months just take out a few tables for those who wish to go outside.
Then comes the repair phase of the room. It is often very long and urgent, because the franchisor is meticulous in its location, appearance and equipment. The problem disappears if the opening of the restaurant is planned in a large shopping center or in the food court area.
How much to hire staff depends on the size of the future restaurant. The minimum staff should consist of three people. This is a cook, cashier and cleaner. So many workers are required to open a small fast food outlet. If the restaurant franchise is launched, then you need to think about a larger number of employees. The salary level is most often set directly by the franchisor.
Total Cost and Lead Time
The most basic steps for creating your own business have been described above. Now let's figure out how much the restaurant franchise will cost.
So, the purchase of the right to work under the name of a well-known company, that is, the franchise itself - up to a million rubles, the conclusion and discussion of a purchase agreement can take an average of 10 days.
The official registration of your own business in Russia costs about 30 thousand rubles and takes from 2 weeks to a month.
The choice of premises, the drawing up of a lease agreement and repair work can last from 1-2 days to several months, the cost of this process on average will vary from 1 to 5 million rubles.
The duration of staff recruitment depends entirely on the franchisee personally, but at this stage it is rarely necessary to linger, on average, 10 days. From salaries you need to spend from 135 thousand rubles, this is only for the first month of work.
We get this result: to open a restaurant, you will need from 8 to 10 million rubles, a simple counter will cost less - about 1 million rubles. All these costs are paid back during the first year of operation. The profitability of the institution is 15-20% of the turnover. Profit directly depends on the number of seats in the restaurant and the cost of the average check. Annual income can be from 3 to 8 million rubles.