Opening or taking over a restaurant
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Restaurant franchising: how to choose the right brand?

Chloé Thévenet
July 8, 2025
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Entering the restaurant business as a franchisee can be a game-changer: a proven concept, a well-known brand, a helping hand to go faster. But you still need to make the right choice! Behind the well-crafted concepts and eye-catching brands, the operational reality can be quite different. Profitability, support, values, business model - don't sign up with your eyes closed. Here are 7 concrete criteria for identifying solid networks and avoiding unpleasant surprises. 

1. Evaluate the real profitability of the franchise brand

Before taking the plunge, your first objective should be to find out whether the franchise you're thinking of joining is profitable. And not just on paper.

Analyze standard operating accounts provided by the network head

Good networks provide a realistic operating account forecast, based on the performance of several franchisees. Read it carefully: target sales, fixed costs, variable costs, etc. When does the model become profitable?

Check whether these figures take into account a realistic ramp-up, with an increase in business over the first few months, or whether they wrongly assume that the restaurant will be running at full capacity from the moment it opens.

Compare entry ticket, royalties, margins

A fast-food franchise with a low entry fee but tight margins may be less attractive than a more demanding food franchise, but more profitable in the long term. Make sure you compare the overall budget

  • Entry fee (droit d'entrée): sum paid once at start-up for access to the franchise and its know-how.

  • Royalties: regular percentage of sales paid to the franchisor for use of the brand and ongoing support.

  • Training: initial cost often included in the overall budget, essential for mastering the concept and processes.

  • Advertising: regular contributions to the national or local marketing budget, sometimes compulsory, to support brand awareness.

A low entry fee may seem attractive, but if royalties, training costs or advertising contributions are high, this can weigh heavily on your budget. Make sure you compare all these costs to anticipate the profitability of your project.

Using key indicators: IRR, breakeven point, projected cash flow

Even if you're not a chartered accountant, there are some simple indicators you can use to assess the profitability of a franchise: break-even point, projected cash flow, or rate of return on investment (IRR). If the franchisor doesn't provide you with these figures, or if they seem unclear, don't hesitate to ask a chartered accountant, franchise consultant or industry professional to help you. Their expert eye will help you to :

  • Deciphering the numbers,
  • Keep a critical eye on the franchise's financial situation,
  • Anticipate cash flow needs,
  • Evaluate your ability to earn money.

2. Make sure the franchise matches your profile

Before signing up, ask yourself this essential question: is this franchise brand right for you? Does it embody the project you have in mind? 

Skills required, level of autonomy, operational pace

Some brands require daily involvement in the field, while others prefer more management-oriented profiles. To make the right choice, ask yourself whether you're comfortable with management, purchasing or customer relations? In short, a good franchise choice should be based on your strengths and your way of working.

Some franchises prefer people who have been in the restaurant business for a long time, while others train people who are retraining: find out exactly what the networks you are targeting are looking for.

Brand values vs. your beliefs

Every franchise brand has its own values: fast good, sustainable development, local sourcing, corporate culture, etc. For your collaboration to be a success, these values must match your own. This point, often underestimated, is crucial: it's how you'll stay motivated over the long term and give meaning to your day-to-day business.

Talk to several franchisees in your target network

A key tip for choosing a franchise with confidence: contact several franchisees in the network, ideally in different areas. This will give you a real insight into life within the franchise. Ask them what's working well, what's causing problems, and whether they'd make the same choice today. To get the full picture, try to talk to both new and experienced franchisees. 

3. Analyze the franchisor's business model

To choose the right franchise, you need to understand how it generates value and under what conditions.

Food or fast food franchising: points to watch out for

Each type of franchise has its own specificities and challenges. A food franchise often involves rigorous inventory management, strict traceability and constant attention to best-before dates. A fast food franchise, on the other hand, focuses on volume, speed and operational efficiency. 

Neither is systematically easier to manage or more profitable: it all depends on your skills, experience and what best suits your career plan. If you're not comfortable with hygiene requirements or managing perishable products, it's best to take this into account from the outset.

Overall budget: entry fee, premises, working capital

The franchise budget is not limited to the entry fee. You need to add to it the fitting-out of the premises, furniture, software licenses, staff and sufficient working capital to absorb the first few months.

And don't forget to include a safety margin of 10-15% of the estimated overall budget for initial investment and start-up costs, to allow for unforeseen events such as construction delays, rent increases, HR contingencies, etc.

Hidden costs: local marketing, hardware, software, support

Last but not least, certain costs can be hidden: compulsory marketing packages, compulsory hardware, software subscriptions, after-sales services or hotlines, hence the importance of asking for a full breakdown of compulsory expenses right from the first meeting. Then make sure they match your forecast. 

4. Measure the dynamics of the franchise network

Network size and growth are useful indicators, but should be analyzed with caution.

Network size and pace of openings

A fast-growing network may seem attractive, but beware: speed of expansion is not always a positive indicator. When openings follow one another too quickly, franchisee support can suffer. It's better to choose a brand that grows cautiously, while providing solid support for its members. 

A well-structured network must be able to integrate new franchisees without sacrificing the quality of its support.

Franchisee satisfaction indicators

To assess this quality, look at satisfaction surveys or anonymous feedback from franchisees. The annual departure rate of network members is also a signal not to be overlooked. A high turnover may reveal internal tensions or inadequate support, even if growth looks strong on paper.

Franchises that recruit the most: beware of unbalanced growth

A franchise that recruits on a massive scale can be misleading, as this is not always synonymous with success. It's important to check that the network has the necessary infrastructure to train, accompany and support all its new franchisees effectively. Growth must always go hand in hand with service quality and individual profitability.

Restaurateur and his team

5. Study the potential of your area for your franchise brand

Even an excellent franchise can't compensate for a poor geographical location. Yes, location remains a key factor, especially in the restaurant business, where visibility and customer flow often make all the difference.

So start by analyzing pedestrian and traffic flows, identify existing competitors and carefully study the catchment area. The franchisor can provide you with data or guidance, but ultimately it's up to you to validate the local potential

6. Securing the legal and contractual framework for franchising

The franchise contract is binding on you for several years: read it carefully, and don't hesitate to enlist the help of a specialist lawyer.

Key DIP checks

The Pre-contractual Information Document (DIP) must be given to you at least 20 days before signing. It contains the franchisor's financial information, the list of franchisees, the network's key figures, and so on. Don't just skim through it, study it closely.

This document also gives you an idea of the network's transparency: be wary if data is unclear, incomplete or missing.

Sensitive clauses: exclusivity, non-competition, assistance

Once you have the contract in your possession, pay particular attention to the clauses that limit your room for maneuver. Exclusivity zones, non-competition or termination conditions can have a direct impact on your business.

Look also at what the company promises in the way of support: some promise comprehensive follow-up, but without specifying the details. A good assistance clause should detail the frequency of visits, the training planned, access to the hotline or field support. This is what will make all the difference after the opening.

👉 To find out more: Becoming a franchisee in 2025: 8 key steps to a successful project

7. Test the franchise before signing

Before committing yourself, test the sign in the field. This will save you a lot of disappointment.

Immerse yourself, test the tools, observe how they really work

Ask to immerse yourself in a sales outlet, for a few hours or even a day. Observe the tools and software used, the atmosphere in the dining room, the rhythm in the kitchen, the distribution of roles, and so on. You'll get a real insight into the day-to-day life of a franchisee.

It's also a good indicator of the internal climate: motivation of teams, clarity of processes, real application of standards. 

Ask the right questions at franchisor meetings (support, software, margins)

This immersion will help you prepare for your meeting with the franchisor. During this meeting, ask specific, concrete questions:

  • What digital tools are included in the offer?

  • What is the average net margin in the network?

  • How does day-to-day support work: hotline, field visits, HR support?

Prepare your list in advance in line with your operational expectations. This moment of exchange is key to finding out whether the network can really meet your needs, not just on paper.

Opening a restaurant franchise is more than just a contract signed between franchisee and franchisor: it's a true entrepreneurial pact. No decision should be taken lightly. Analyze, test and challenge the different brands that interest you. The right network is the one that matches your values, your energy, your vision and your ambitions. Choosing also means knowing how to say no.

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Thinking of becoming a franchisee? Innovorder solutions can help you improve efficiency, profitability and customer satisfaction. Let's appointment to discuss your needs.

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