The restaurant business is a tough industry. It takes a lot of work and long hours to withstand the competition. However, a franchise has a proven system, generates profits, and is a successful business. If you prefer to become a franchise owner, then you should contact a restaurant franchise lawyer.
The Initial Investment
It helps to talk to a restaurant franchise lawyer in the beginning stages. Your lawyer can talk about the fees and the different types of franchises. The initial franchise fee is paid to the franchisor for the rights to operate under their trademark.
This fee can vary depending on the company. The initial franchise fee for Chick-fil-A is $10,000. You should keep in mind that franchise fees are nonrefundable.
Startup Fees
You have to pay startup fees to get your restaurant up and running. The startup fee includes obtaining a location that meets your franchisor’s requirements. It also includes equipment, permits, and the purchase of licenses.
Royalty Fees
The royalty fee is an ongoing payment that you pay to the franchisor out of your revenues to remain affiliated with the brand. It guarantees that you continue to receive services and support. The royalty fee can be from 4 percent to 6 percent of your monthly earnings.
It is an exciting time to open a restaurant. This business move allows you to create jobs and add to your local community. A restaurant franchise is a good start for entrepreneurship because the roadmap is already laid out.