A franchise is one of the most popular models for starting a business, especially in the field of gastronomy. This allows entrepreneurs to use a recognizable brand, proven operational procedures and franchisor support. However, like any form of business, it has its advantages, but there are also problems. Marcin Dyrda, Founder and CEO of Gastrowiedza, shares his knowledge about the franchise, its advantages and difficulties connected with it.
What is a franchise?
Franchising is a business model based on an agreement between the franchisor and the franchisee. The franchisee gets the right to conduct business under the banner of the franchisor, using its know-how, operating system and support in exchange for licensing fees and compliance with established standards. In Poland, especially in the food service sector, franchising is growing rapidly, and the number of franchised companies grew by about 190% between 2009 and 2022.
Advantages of franchising in the field of public catering
Proven business model
Expensive"One of the key benefits of a franchise is access to a proven business model", says Marcin Dyrda. Thus, the entrepreneur does not need to start from scratch, but uses the knowledge and experience of the franchisor. This reduces the risk of errors and accelerates the process of opening and profitability of the premises.
Franchisor Support
The franchisor offers a wide range of support, from training to marketing, management and logistics assistance. New franchisees can count on support both at the preparation stage and during the daily conduct of business.
It is worth remembering that using the full support of the franchisor is the key to success - says Marcin Dyrda. The better you use tools, training, and operational support, the more likely your business is to succeed.
Brand awareness
By opening a space under the banner of a well-known chain, the franchisee automatically benefits from brand awareness, which gives an advantage in the market. Guests are more likely to choose proven locations, and a recognizable brand inspires confidence, which leads to a faster influx of visitors.
RememberA franchise gives you access to a brand, whose reputation has already been established - emphasizes Marcin Dyrda. This is especially important in the field of gastronomy, where competition is fierce.
Access to verified vendors
Working with a franchisor often means access to proven suppliers and improved trading conditions. This allows franchisees to negotiate lower prices and get better discounts, resulting in higher profits. Use of ready-made logistics solutions offered by the franchisor. This is not only a time saver, but also a way to optimize costs.
Risk minimalization
A franchise offers less risk than starting a new business on your own. Working within a proven system and using the franchisor's experience limits the number of potential errors.
ExpensiveChoosing a franchise doesn't completely eliminate the risks, but it significantly reduces them - says Marcin Dyrda. However, the key factor is your commitment and skillful management of the space.
Problems of franchising in the field of gastronomy
High initial costs
While the franchise provides a proven business model, it also comes with high initial costs. These include licensing fees, investment in equipment, and room adaptations. These costs vary from network to network. For example, the minimum investment in Da Grasso is about 150 thousand zlotys, as well as a monthly deductible fee.
RememberBefore making an investment decision, carefully analyze all costs and potential returns - advises Marcin Dyrda. You should make a detailed business plan to avoid unexpected financial difficulties.
Limitations of creativity
Franchising requires compliance with established standards. This means that the franchisee does not have complete freedom in terms of creating an offer, the appearance of the premises, or marketing strategy, which can limit creativity.
Franchising is a model based on ready-made solutions - emphasizes Marcin Dyrda. If you value creative freedom and innovation, this business model may not be ideal for you.
Contractual obligations
Signing a franchise agreement is a long-term commitment. The franchisee must be prepared to comply with the terms of the agreement during the entire period of cooperation. Failure to comply with these obligations can lead to serious legal and financial consequences. Please read the terms and conditions carefully before signing the agreement. Making sure that you are able to meet all the obligations to avoid problems in the future.
Brand reputation risks
While using a recognizable brand is a great advantage, it also comes with risks. The problems of one franchise institution can affect the reputation of the entire network, and this can negatively affect the business of other franchisees.
Brand reputation is a double-edged sword - says Marcin Dyrda. Make sure that your establishment meets the standards, but keep in mind that other franchise points also affect the brand perception.
How to maximize the franchise's potential in the food service industry?
- A thorough analysis of the franchise offer
Before deciding to enter the franchise model, it is important to analyze the contract terms and costs. Pay attention to the initial, ongoing fees, and level of support offered by the franchisor.
- Consultations with experts
Before signing a contract, you should consult with franchise experts or lawyers. They will help you understand all the obligations and risks associated with signing a contract.
- Communication with other franchisees
Nothing gives a better picture than talking to people who already work in this franchise system. Communication with existing franchisees will allow you to better understand the problems and benefits of this system.
To sum up
Franchise is an attractive business model that offers many benefits, such as access to a proven business model, operational support, brand awareness, and reduced risks associated with running a business. However, running a franchise restaurant also comes with challenges such as high initial costs, creative limitations, and contractual obligations.
Before making a decision to invest in a franchise, entrepreneurs should carefully review the offer, consult with experts, and talk to other franchisees. Success in franchising requires commitment, management skills, and flexibility to adapt to changing market conditions.
A franchise is not a guarantee of success, but it provides a solid foundation for running a profitable food service business. It is worth taking this step consciously, with a full understanding of both the benefits and risks.
Junior specialist in Marketing Communications and PR.
He is a graduate of the University of Warsaw and the Main School of Agriculture. We have been in the HoReCa industry for more than 10 years. For many years, he has been associated with the Trip group, Sobienie Royal Golf and Country Club, and the Florentin Restaurant in Warsaw.
She graduated from the Faculty of Architecture of the Warsaw Technical University with a degree in Architecture for the Knowledge Society and Visual Communications at the Polytechnic University of Milan. A specialist in creating a mood. She has gained experience at home and abroad at numerous international seminars (Seville, Lisbon, Florence), fellowships at La Sapienza (Rome), etc. m.in. in Carmi e Ubertis and ADM Milano.
A manager with many years of experience in the cosmetics, food, and children's industries. During his career, he was associated with such companies as: L'Oreal, Samsung, Danone-Nutricia, Unilever. During his professional life, he was responsible, among other things, for the development of e-commerce sales and content in Poland and the countries of Central and Eastern Europe. 
