How to Buy a Restaurant Franchise

How to Buy a Restaurant Franchise. Purchasing a restaurant franchise rather than starting a restaurant business of your own is a very good idea. The business model is already proven to work. Plus franchisors receive support and training from the company headquarters. Restaurant franchises may be more expensive to buy than other types of franchises; however, they can also be very lucrative. The process of purchasing a restaurant franchise is not an extremely difficult one.

Decide which type of restaurant franchise you will buy. Search classified advertisements and franchise directories for information on restaurant franchise opportunities in the geographical area of your choice. Evaluate the initial costs and other factors, in order to select a few franchises that you are interested in purchasing.

Request a franchise application. Review all the documents provided by the franchisor, including financial statements. Ask for details about the company training and support program.

Talk to current franchisees. Talking to someone who is already a franchisor for the restaurant chain will provide vital information. Ask about day-to-day business activities, unexpected problems with their franchise and ease of dealing with franchisor. Question if their profits have met or exceeded their expectations.

Evaluate the location and market of your proposed restaurant franchise. How much competition of similar restaurants is in the area? Have recent changes occurred in the community which may cause a decrease in customers?

Ask franchisor about financing. Many franchisors will finance the initial costs. Also ask about how much working capital you will need to operate the business outside the start-up costs.

Have your attorney review the franchise agreement. Make amendments to the agreement, if necessary.

Sign the agreement and begin business. Hire qualified employees and maintain high standards in all your business dealings.


  • Understand all the terms of the sale before signing the paperwork.


  • Do not skimp on hiring advisors. It is very important to have an accountant review the finances and an attorney to oversee the sale.

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