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How to Franchise a Restaurant from a Construction Perspective

Franchising a new business is exciting, but it also requires a significant amount of forethought to prepare for a variety of scenarios that a franchisee could encounter. Obviously, your lawyer and consultants can provide the legal and contractual elements of franchising, but as a restaurant construction specialist, we’re more versed with the building design and construction details that you’ll need to establish. Below we offer advice for you to consider during franchise development.

The cost of construction changes in each market. Larger markets obviously cost more for land and construction services. Taking into consideration your business forecast and break even analysis, some markets may not be a good return on investment due to the cost of construction. Break even information and estimated construction costs will help you determine which size markets will be lucrative and which to avoid.

Next is the standard building design. You’ll want to have a uniform look and feel to your restaurant for branding purposes, so you’ll need to establish your approximate square footage, floor plan, number of seats, décor colors, materials, decorations, kitchen equipment and whether or not to use a drive-thru.

Furthermore, if you’re planning to lease your building, it’s best to share your lease agreement with your architect and contractor prior to signing it. Doing so can save you frustration, time and money. Most lease hold requirements involve design and construction provisions that may restrict you from keeping your new space uniform to the brand. Also, your architect can design more efficiently when they know what the requirements are for a space and your contractor can provide value engineering to save money. Or you can search for a new space if you’re unable to do what you want.

Finally, when you establish how many locations you’re going to franchise, you can take advantage of bulk buying power to save money on construction materials such as carpet, floor tiles, ceiling tiles, cabinetry, etc.

Pleas call Michael Shepard, Business Developer, to get your questions answered or to learn more about our franchising and construction expertise., 989-790-9120.

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