For people who are thinking about buying their first franchise, there is perhaps no better source of information than from those who have previously been in their shoes. That is why we asked several restaurant operators what advice they had for people who are considering making the leap into franchise ownership.
While the information provided by the franchisor is important, whether it is the Franchise Disclosure Document, corporate structure, or royalty fees, the insight from franchise owners themselves is invaluable. Maybe that is why several franchisees recommended speaking to other current franchisees in the system to get their thoughts about their experiences as an owner of the brand.
Many franchisees emphasized having a clear understanding of the support offered by the franchisor. Having those resources is one of the primary advantages of owning a franchise, and knowing what you are getting is especially important for a first-time owner. Another common theme is determining if someone is a good cultural fit with a brand. That is not something that can be done on paper. It requires speaking to many people, seeing the operations in action, and getting a feeling if there is a good personal match.
It often comes down to due diligence. The more research that can be done across as many areas of a franchise’s operations, the more informed and comfortable someone will be with their decision. See below for some valuable advice from several experienced multi-unit restaurant owners.
We also asked other restaurant franchisees how they measure growth. It often goes beyond just increased revenue or the number of units they own. Read this week’s Franchisee Byte to see the different metrics and factors multi-unit operators track their growth.
When considering any franchise opportunity, I would suggest not just looking at the brand, but at the partnership. A strong franchisor will offer support but also respect your ability to operate and lead locally. Before you sign anything, have candid conversations about how they balance guidance with giving franchisees room to make decisions. Study the franchise disclosure documents carefully to ensure that you are comfortable with franchisor requirements. Speak with at least a couple of existing franchisees who are willing to share their experiences.
It’s also wise to ask about systems of ongoing support, such as franchise advisory groups, regional meetups, and open-door communication with leadership. Those networks can be a lifeline, especially in your first couple of years. And lastly, don’t underestimate the importance of fit. Make sure the values of the brand line up with your own. If you’re aligned on culture and expectations, the rest becomes a lot easier to manage. A good franchise will feel less like a contract and more like a team.
First, pick a brand you believe in, not just a brand that’s hot. Then surround yourself with people who will work as hard as you, but who’ll also challenge you and not just high-five your bad ideas. Build your team early and hire people better than you at specific things. Watch your numbers like a hawk (especially food costs). And remember, culture isn’t a mission statement -it’s how your team talks, works, and treats people when you’re not around.
After 20 years as a multi-unit operator across three different franchise systems, my advice to first-time buyers is to approach the process with realism. Franchising can be a great path to ownership, but it’s not a turnkey investment. Despite what some brands may imply, there’s no such thing as passive income, at least not at the startup level. When you buy a franchise, you’re buying a business that will demand your time, your leadership, and your focus. Like anything in life, you get out what you put in.
Just as important, you must be genuinely excited about the brand. Be a true believer in the product, the customer experience, and the business model. That passion is what will carry you through long days, staffing challenges, and the inevitable surprises that come with running a business.
Beyond passion, due diligence is everything. Scrutinize the Franchise Disclosure Document, especially the financials and the franchisor’s track record. Speak with current franchisees and visit operating locations. Build a financial model and understand the true cost structure, including buildout, working capital, and recurring fees. Prepare a thoughtful list of questions before speaking with franchisees. Ask about real-world challenges, the quality of support they’ve received, how long it took to break even, and what they wish they’d known before signing. The more specific your questions are, the more honest and valuable the feedback will be.
Equally important is knowing yourself, what you personally need and expect from the franchisor. Will they provide meaningful support in operations, marketing, training, or technology? Or will you be left to figure it out on your own once the deal is signed? Identify what type of support matters most to you and evaluate whether the franchisor is equipped to deliver on those expectations based on your research and interviews.
Franchising offers a proven playbook, but it’s up to you to execute it well. Go in with clarity, confidence, and commitment.
I recommend engaging directly with several current franchisees to gain a comprehensive understanding of the operational nuances and realities of the business. This first-hand insight is invaluable in making an informed investment decision and in preparing for the responsibilities of ownership. Learning from the experience of others positions you with a strategic advantage and enhances your readiness to navigate the complexities of franchise leadership.
Have superior front line supervision and talent, especially your main operations leader, and provide them with opportunities to get a piece of the business. They are true restaurant professionals who will be willing to work long work weeks while the business is getting off the ground. Another piece of advice is to have your accounting processes and procedures in place, as you need to know where every penny is.
Do your homework and remember that cultural fit matters. Research franchise brands extensively, and not just their marketing materials. Speak with existing franchisees and ask them what they wish they knew before they signed. Make sure to study the Franchise Disclosure Document. It is important to pick a brand that matches your personality and values. A good brand feels like a team, not just a transaction. If you want to lead a team into battle you have to believe in what you’re doing.
Year-over-year comp sales, year-over-year transactions, overall guest satisfaction, improvements to company profitability, cash flow, and cafe-level EBITDA. Most importantly, our growth is measured by whether we are fulfilling our company mission of creating more opportunities for others using our God-given gifts. We do that through unit-count growth and internal advancement within our organization.
-Nick Crouch, Co-CEO, Dyne Hospitality Group, 118 Tropical Smoothie Cafe
We previously gauged it as an increase in sales, but now we are moving toward lean practice and increased sales.
-Carrie Ayers, Co-Owner/Operator, 6 Playa Bowls
We focus on EBITDA and net income growth. We set out to double earnings YOY in 2024, and we accomplished that halfway through the year.
-Mike James, Founder/Managing Partner, Guernsey Holdings, 122 Sonic, 20 Zaxby’s, 3 Take 5 Oil Change
We use several metrics to track progress. Same-store sales are the most critical – broken down daily, weekly, and annually. We also monitor order counts to gauge customer traffic. Beyond financial metrics, I look at the number of franchised units we’re operating. Expanding our footprint while maintaining performance at existing locations is key to our long-term success.
-Jacob Webb, Franchise Owner, MPUT Holdings LLC, 22 Marco’s Pizza, 4 Tropical Smoothie Cafe
I measure my growth by the success of my people. I want to see them grow professionally and be happy. If I lose talented people, I know I’m not doing something right. The longevity of my talented people shows their success and my overall growth.
-Sam Chand, CEO, Jasam Enterprises, 25 Checkers & Rally’s, 35 KFC
