Buying a Restaurant Franchise

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When looking at entering the food industry, some may assume that the best way is through buying a franchise.

It is a good option, especially when purchasing into a popular and well-established brand; however, there still are a few pros and cons to consider.

Pros to buying a restaurant franchise

  • When purchasing a franchise, you don’t need to worry about creating a brand and image for yourself. Name, décor, cuisine, restaurant design are all already mapped out for you.
  • Marketing should already be organised and well established by head office. They will have their own big brand marketing team that rolls campaigns out to your store.
  • Franchises generally come with a lot of support from head office. Even if you don’t have a lot of experience with running a restaurant, they provide a significant amount of support and best practice tips to help you out with your business.

Cons to buying a restaurant franchise

  • Franchises can be expensive to buy into, especially if you’re choosing to buy a well established and known brand, this can move from the hundreds of thousands, well into the millions. This is one reason why a successful self-start can be a lot more profitable than a big group. It can take even up to 10 years to break even, which is almost five times the average of your own self-start.
  • Unfortunately with a franchise you aren’t allowed any creative freedom. This even includes limits to menu changes, branding, venue and image.
  • No matter how popular a brand may be, success isn’t guaranteed. One key point is that you need to follow brand guidelines; otherwise you’re come into trouble.


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