Restaurant Franchising: What You Need to Know to Get Started

Dreaming of owning a restaurant but worried about the risks? That’s where restaurant franchising comes in! 

It’s a business model that allows you to own and operate a restaurant under an established brand, with guidance from the franchisor (the company that owns the brand). You, as the franchisee, invest in the business, follow their systems, and benefit from their brand recognition and support.

Franchising is an attractive option for restaurant professionals because it offers a proven path to success, reducing many of the risks associated with starting from scratch.

Whether you're an experienced restaurant manager looking to step into ownership or an entrepreneur passionate about food and hospitality, franchising provides a way to build your own business while leveraging the expertise of a successful brand. 

That being said, it’s not the right move for everyone. So, is it the right move for you? In this blog, we’ll dive into the benefits of restaurant franchising, the challenges, and why there may be a better solution that enables you to still work in the industry… but without the common challenges of working late that come with it. 

Why Choose Restaurant Franchising?

Not every aspiring restaurant owner wants to build a brand from the ground up. Franchising allows you to tap into an existing business model with built-in advantages. 

Here’s why it might be the perfect fit for you:

1. Proven Business Model

One of the biggest advantages of franchising is that you don’t have to start from square one. Franchisors have already tested and refined their business operations, menu, and marketing strategies. This reduces trial and error and increases your chances of success.

2. Lower Risk

Starting a restaurant from scratch can be risky - about 60% of new restaurants close within the first year. Franchising minimizes some of that risk because you’re operating a model that has already been proven to work. While success isn’t guaranteed, your chances are better when you follow a well-established system.

3. Brand Recognition

Customers are more likely to visit a restaurant they already know and trust. When you invest in a franchise, you benefit from the reputation and marketing efforts of the brand. Instead of spending years building brand awareness, you hit the ground running with a name people recognize.

4. Training and Support

No restaurant ownership experience? No problem. Most franchisors provide comprehensive training to get you up to speed on operations, food preparation, hiring, marketing, and financial management. Plus, ongoing support ensures you’re never left figuring things out alone.

5. Purchasing Power

Franchisees often gain access to bulk purchasing discounts for food, equipment, and supplies. Because franchisors work with large-scale suppliers, they negotiate better rates than independent restaurants, helping you save on operational costs.

If you’re not sure if franchising is the right choice for you, then check out our Are You Ready to Own a Hospitality Franchise Checklist.

6 Steps Get Started With Restaurant Franchising

Thinking about diving into restaurant franchising? Follow these key steps to get started:

Step 1: Research Your Options

Not all restaurant franchises are created equal. Some specialize in fast food, others in casual dining, and others in niche markets like health-conscious or ethnic cuisine. Research different brands, compare their business models, and choose one that aligns with your interests, budget, and experience.

Step 2: Understand the Costs

Owning a franchise requires an upfront investment. Here are some key costs to consider:

• Franchise Fee: A one-time payment to the franchisor for the right to use their brand and system (typically $20,000 - $50,000 or more).
• Royalty Fees: Ongoing fees (usually a percentage of revenue) paid to the franchisor for support and branding.
• Initial Setup Costs: Equipment, furniture, signage, and leasehold improvements.
• Marketing Fees: Many franchises require you to contribute to a national marketing fund.

Step 3: Review the Franchise Disclosure Document (FDD)

The FDD is a legal document outlining the franchise’s financials, obligations, and business model. Carefully review it (preferably with a lawyer) to understand what you’re committing to.

Step 4: Secure Funding

Unless you have significant personal savings, you’ll likely need financing. Options include:

• Small Business Loans (SBA Loans)
• Franchise-Specific Financing Programs
• Investor Partnerships
• Personal Savings or Retirement Funds

Step 5: Location and Setup

The right location can make or break a restaurant. Many franchisors assist with site selection, helping you find a high-traffic area that aligns with your target market. You’ll also need to meet the franchisor’s design, layout, and equipment requirements.

Step 6: Training and Grand Opening

Once your location is ready, you’ll undergo training to learn the brand’s operational processes. From there, it’s time for your grand opening, with marketing support from the franchisor to drive initial traffic.

Get a more detailed step-by-step guide in our blog, How to Start a Franchise: Your 10-Step Guide.

The Challenges of Restaurant Franchising

While owning a restaurant franchise is a great option for many people and comes with a huge number of benefits, it also has its drawbacks. It’s not for everyone, especially those who want to stay in the industry they love but get away from some of the typical drawbacks - like long hours and late nights - that come with working in a restaurant and bar. 

1. High Initial Investment and Fees

Starting a franchise can cost hundreds of thousands of dollars, making it a significant financial commitment.

2. Long Hours and Operational Stress

Running a restaurant requires dedication. Many franchisees work long hours, including weekends and holidays, to ensure smooth operations.

3. Lack of Full Independence

As a franchisee, you must follow the franchisor’s rules, menus, and systems. There’s little room for creativity or major business model changes.

A Better Way: Franchise with an Industry Leader Like Sculpture Hospitality

What if you could stay in the restaurant industry but avoid the long hours and operational headaches? That’s exactly what a Sculpture Hospitality franchise offers.

Many restaurant owners and workers love hospitality but are tired of working late nights, dealing with staff turnover, and managing high-pressure environments. With Sculpture Hospitality, you get to use your restaurant expertise in a new way - helping bar and restaurant owners optimize inventory and boost profits, all while setting your own schedule.

Owning a Sculpture Hospitality franchise means running a business on your terms. Instead of 16-hour shifts, you get the flexibility to set your hours and create a work-life balance that suits you. No cooking, no dealing with late-night crowds, and no endless staffing headaches.

Sculpture Hospitality provides a proven business model, industry-leading technology, and ongoing support. You’ll use your restaurant knowledge to help others succeed while building your own profitable business.

Is a Sculpture Hospitality Franchise Right for You?

If you’re a restaurant professional looking for a new opportunity, here’s why Sculpture Hospitality might be your perfect fit:

• Lower upfront investment compared to opening a restaurant.
• No prior business ownership experience is required - we provide full training and support.
• Work independently while staying connected to the restaurant industry.

Interested in learning more? Schedule a consultation with our franchising team today.