Is Franchising the Right Way to Grow Your Restaurant Business?

An Interview with Paul Segreto, CEO of the Franchise Foundry based on a RestaurantOwner.com webinar by the same name.

Few things typify risk-and-reward more than restaurant franchising. The rewards are clear. The overall franchise sector is expected to grow by $36 billion this year, according to the International Franchise Association's (IFA's) Franchise Business Economic Outlook for 2017, led by restaurants. According to a 2017 outlook for the U.S. franchise restaurant sector by BMO Harris Bank, franchised quick-service restaurant sales are expected to rise 6.7% from last year, to $237.6 billion. Full-service franchised restaurant sales are expected to increase 7.3% from last year, to $63.2 billion in output.

Franchisors must understand franchisees have also made a significant investment in the business, and in the founder's vision. We hear so much about positively memorable experiences for customers, but that should be the case for franchisees in their relationship with the franchisor.
- Paul R. Segreto
CEO, The Franchise Foundry

The restaurant industry represents the largest number of franchised locations, thanks not only to established chains like McDonald's Corp.; but also smaller operators who use franchising to grow quickly. The IFA predicts the so-called full-service restaurant sector will account for the greatest growth, followed closely by quick-service units.