What is a Franchise Restaurant? And Why Invest?

As someone interested in owning a restaurant, why not consider the option of franchising? Franchise restaurants offer a unique opportunity to own your business while benefiting from the support and reputation of an established brand. Learn more about restaurant franchises and the benefits of investing in the right brand.

Definition of a Franchise Restaurant

Chains like McDonald’s, Taco Bell, Dunkin’, Applebee’s, and Chili’s are all examples of restaurant franchises. As defined, a franchise restaurant is a specific type of business model. An individual or group (the franchisee) owns and operates a restaurant under the branding, systems, and support of an established company (the franchisor).  Through this arrangement, franchisees can start their own business with lower risk, while franchisors can accelerate the growth of their brand.

A Breakdown of the Franchise Agreement

At the core of the franchisee/franchisor relationship is the franchise agreement. A legally binding document that outlines the rights and responsibilities of both parties, ensuring everyone is on the same page from the moment the agreement is signed. As part of the franchise agreement, franchisees can expect the following:

Rights:

• The right to use the franchisor’s branding and proprietary systems
• Access to the franchisor’s products, services, and vendor partnerships
• Training and ongoing support, including marketing, operational, and software assistance

Obligations:

• Compliance with brand standards and guidelines to maintain consistency
• Payment of franchise fees, ongoing royalties, and marketing fees
• Commitment to the franchisor’s established business model

However, the franchisor must uphold its end of the bargain. A reputable franchisor should provide its franchise partners with comprehensive training programs and operational support, along with marketing strategies, advertising resources, and promotional materials to drive customer traffic. Additionally, it should maintain strong relationships with approved vendors and suppliers to ensure cost efficiency.

Benefits of Investing in a Franchise Restaurant

As you conduct more research to answer the question “What is a franchise restaurant?” you’ll likely find the many benefits that come with investing in a franchise – including:

• Proven business model: Through trial and error and years of industry experience in the competitive restaurant industry, the franchisor has perfected its business blueprint. This provides a structure that minimizes risk and increases the likelihood of success.
• Brand recognition: Established franchisors have locations regionally, if not nationally, generating consumer awareness. Typically, consumers prefer spending their money on familiar brands. For restaurant franchises in particular, leveraging a well-known brand can be the difference between steady customer traffic and struggling to build visibility.
• Network of peers: When you join a franchise brand, you connect with like-minded individuals who have the same goals as you. Through these connections, you can collaborate, support, and learn from one another – strengthening the system as a whole.

Franchise with Penn Station East Coast Subs

Founded in 1985, Penn Station East Coast Subs is a rapidly growing QSR franchise. With over 300 locations nationwide, our brand has more territories available for expansion in 18 states. Our franchise opportunity is accessible, with investment costs starting at $507,500*. We do require interested franchise candidates to have a net worth of $500,000 and at least $300,000 in liquid assets to qualify for our opportunity.

To learn more about Penn Station East Coast Subs, request information today, and an expert from our development team will set up an introductory call.