MacQue’s BBQ had been in business for more than three decades when it opened a second location in Elk Grove, California, in 2019. In September 2021, the family-owned restaurant announced plans to franchise. The announcement described a new direction for the brand; it did not establish how the franchise network later performed.
That timeline points to the work ahead of a restaurant owner who wants to become a franchisor. Customers may know the menu and the name. A new operator needs to know how to run the business, what it costs, and who will help when trouble comes.
1. See What Happens When You Step Away
A founder’s presence can cover up weaknesses. They know which supplier to call, how much seasoning to add, and which staff member can handle a rush. A customer may see a smooth service; the accounts may show a business held together by unpaid hours and personal relationships.
Start with the real cost of running the restaurant. Include a salary for the owner’s work, even if they currently draw little or none. Account for food, labour, rent, insurance, utilities, repairs, marketing and management. If profit disappears after the owner’s hours are properly costed, a franchisee may struggle to make a living.
Then look at sales over time. Compare weekdays with weekends, slower months with busier ones, and lunch with dinner. A full opening weekend is useful evidence of interest. It says less about repeat customers or whether the location can cover its costs through a quiet month.
The next test is operational. Leave a manager in charge for a week. Write down each question that reaches you, every decision that waits, and anything that stops until you return. Those interruptions show what the founder still carries in their head.
A second company-owned location can test whether the business works somewhere with different costs, customers, and suppliers. It can expose how much the original restaurant depends on its neighbourhood. There is no magic number of locations that makes a brand ready to franchise. The owner needs evidence that the model can travel.
2. Get the Restaurant Out of Your Head
A founder may know the recipe by touch and smell. A franchisee needs measurements, timings, and practice. The system has to transfer what the founder knows to people who have never worked in the original kitchen.
Write down recipes and portion sizes. Record prep times, food-safety steps and cleaning routines. Add opening and closing procedures, ordering, inventory, supplier standards, hiring, scheduling, cash handling, and customer service. Include equipment maintenance and local marketing.
The manual should help when the day goes wrong, too. If a delivery is late, can the manager approve a substitute? If the freezer fails before dinner, who gets called? A manual cannot predict every problem. It can give staff a path to act without waiting for the founder.
Ask a manager who did not help write it to run a shift using the instructions alone. The questions that come up are the ones the document still needs to answer. A polished manual is no use if employees still have to guess at the important parts.
There is a harder question underneath the paperwork: which parts of the restaurant must feel the same at every location? It may be the seasoning, the way a dish is served or how customers are welcomed. Music and décor may matter too. Owners should identify the elements that carry the brand, then decide where local operators can use their judgment.
MacQue’s BBQ described its franchise system as a mix of family recipes, culture and processes. CEO Michael Thomas said in the company’s 2021 announcement:
“We believe we have created the perfect balance of classic family recipes, ‘QUEmunity’ culture and systemic processes for our potential Franchisees.” —Michael Thomas
That was the company’s stated aim. The announcement does not show how the franchise system performed. For any owner, the question is whether recipes, service, and culture can be taught well enough for another team to deliver them.
3. Check the Franchisee’s Numbers, Not Just Your Own
Franchisors and franchisees need different financial plans. The franchisor must pay for the system. The franchisee must pay to open and operate a location, meet the agreement’s costs and earn a living.
Work out the likely opening bill: lease deposits, construction, equipment, permits, initial stock, hiring and marketing. Estimate ongoing sales and expenses, including food, labour, rent, insurance, royalties, debt payments and owner compensation. Run the numbers with higher costs and a slower opening. If the model works only when everything goes right, it is not ready to sell.
MacQue’s 2021 franchise offer gives one dated example of the scale of the commitment. Sacramento Business Journal reported an initial fee of $37,500 and a projected investment of $227,000 to $530,500 for one location, according to the reported figures from 2021
The franchisor’s side can be just as demanding. Someone has to train operators, visit locations, answer questions, manage the brand, and update the materials. The first franchisee may get a lot of the founder’s attention. Five more can quickly turn that informal arrangement into a full-time job.
Fees and royalties should follow a realistic forecast. A royalty based on sales is still due when the location has a weak month. Before signing, candidates should understand the initial fee, recurring payments, required purchases, and advertising contributions.
The name needs protection before it is licensed. The U.S. Patent and Trademark Office recommends a clearance search before filing a trademark application. Its federal database does not show every possible conflict, so owners may need to search beyond it and consult a trademark attorney.
Put brand use in writing: the logo, menu, recipes, suppliers, and marketing materials. If a franchisee wants to make a local change, the agreement should explain how approval works.
4. Budget for Legal Work and Support
A franchise system costs money before royalties become dependable. Legal advice, financial statements, manuals, software, training, staff, and help with openings all need funding. An owner who plans to pay for everything with the first franchise fees may find the money arrives too late or falls short.
Financing access can be uneven. Federal Reserve analysis of its 2021 Small Business Credit Survey found that 16% of Black-owned applicant firms received all the financing they sought, compared with 35% of white-owned applicant firms. The figures describe applicants in that survey year. They do not describe every Black business owner, but they document a gap that expansion plans should account for.
Owners might compare retained earnings, bank financing, and community development financial institutions. The Small Business Administration’s 7(a) program guarantees loans made by participating lenders and can cover eligible needs such as working capital and equipment. The SBA does not lend directly through the program; the business must meet program and lender requirements.
In the United States, the Federal Trade Commission’s Franchise Rule requires a disclosure document covering 23 subjects, including fees, the franchisor’s background and the franchisee’s obligations. The buyer must receive it at least 14 days before being asked to sign a contract or pay money to the franchisor or an affiliate. States may add their own rules, so an owner needs a franchise attorney familiar with the places where they plan to sell.
Legal work does not end when the documents are ready. The company needs someone to keep records current and deliver disclosures on time. Consultants can help with planning; legal advice should come from a qualified attorney.
5. Choose Franchisees for the Work Ahead
The money to open a location matters. So does the person who will hire staff, manage costs, and serve customers under the brand’s name.
Assess a candidate’s operating experience, funding plan, and understanding of the daily work. Talk plainly about the time and risks involved. The FTC tells prospective franchise buyers to examine a franchisor’s finances, support and growth plans. A new franchisor should be prepared to answer those questions with records.
The first training should happen before the doors open. An operator may need help choosing a site, planning a layout, hiring staff, ordering supplies, preparing food, and introducing the restaurant to the neighbourhood. Once the location is running, they need to know who can help when a manager quits or service falls behind.
Cornbread Farm to Soul’s founders had experience operating franchises before they offered their own concept. In October 2022, Adenah Bayoh and Elzadie Smith announced franchise opportunities for their three-location business in New York and New Jersey. Bayoh had also operated IHOP franchises. Their announcement described the expansion plan; it did not report later franchise performance.
Bayoh told Nation’s Restaurant News:
I believe in franchising. I believe that it can help you grow a business. —Adenah Bayoh
Support needs a calendar, a budget and people responsible for delivering it. Plan field visits, quality checks and refresher training. Give franchisees a clear way to raise problems. Review customer feedback, food and labour costs, sales and compliance. Early operators will find gaps. Fix those before signing more agreements.
The agreement is the easy milestone to count. More telling is what happens after opening: can the franchisee make the business work, can the franchisor help when it hits a problem, and do customers find the restaurant they expected?
Frequently Asked Questions
How many locations should a restaurant have before franchising?
There is no set number. A second company-run restaurant can test the model in another location. Owners also need reliable financial records, written procedures and managers who can run the business without constant founder involvement.
Does a restaurant need a Franchise Disclosure Document?
In the United States, the FTC Franchise Rule requires a disclosure document covering 23 subjects. State laws may add requirements. A franchise attorney can explain what applies where the owner plans to sell.
What should a franchise fee pay for?
The fee and royalties should help fund services the franchisor promises, such as training, opening help, operating materials and field support. Franchisees also need a realistic path to cover costs and earn a return.
How can an owner protect a restaurant brand before franchising?
Search for similar marks and speak with a trademark attorney about registration. Put rules for using the name, logo, recipes, menu and marketing into the franchise documents, along with a process for approving local changes.
What support should franchisees receive after opening?
They may need field visits, refresher training, quality checks, marketing resources and help with operating problems. The franchisor should assign people and budget to this work before selling more locations.
Can franchise fees fund a franchisor’s expansion?
They can contribute, but owners should plan for other sources of funding too. Legal work, training, staff, technology and operator assistance all cost money before royalty income becomes dependable.
