How to Choose the Right Franchise: 8 Questions to Ask Before You Invest in a Restaurant Concept
Owning a restaurant franchise can be a rewarding opportunity, but with so many options on the menu, it’s important to do your research. Not all franchises offer the same level of support, flexibility, and long-term potential. To set yourself up for success, you need to make sure the franchise you choose is right for you.
So, how do you choose the right franchise? By asking the right questions.
There are two important conversations you need to have before investing in a restaurant franchise. The first is with yourself, to make sure you choose a franchise that meets your goals and budget. The second is with your franchisor, to ensure the brand is aligned with your business goals.
In this guide, the Bonchon team has rounded up some of the most important questions we often hear from franchisees. By the end, you’ll have the knowledge you need to make an informed investment.
Questions to Ask Yourself Before Franchising a Restaurant
- Am I financially ready to invest?
Starting a franchise requires plenty of passion, but it also requires the funds to get your business up and running. Every restaurant franchise comes with initial investment costs, franchise fees, and ongoing expenses you’ll need to consider.
Before you commit, ask yourself:
- Do I have the capital to cover startup costs and sustain operations in the first year?
- How much am I comfortable spending on ongoing fees like royalties and marketing contributions?
- Should I explore financing options or loans to help with the investment?
Make sure the numbers add up! A smart investment means choosing a franchise with solid return potential — not one that drains your resources before you’ve even gotten off the ground. We always offer franchisees a transparent cost breakdown and dedicated support, so you’ll have all the right tools to make your investment pay off.
2. Does this franchise align with my strengths and interests?
Running a restaurant is hands-on work! You don’t need to be a trained chef to run a successful franchise, but you should be a natural leader with a passion for food, people, and hospitality.
Are you comfortable managing employees, daily operations, and customer experience? Or is a semi-absentee franchise model more your speed? Our franchisees are hands-on owners who are excited about being involved in the day-to-day operations of their restaurants.
And, of course, if you don’t love the product you’re serving, why would your customers? It’s important to choose a restaurant franchise that you genuinely enjoy and are proud to serve. Our franchisees come from all backgrounds, but what they have in common is a love for Korean food, consistent quality, and working with people.
3. Is there a market for this franchise in my area?
Your franchise can’t succeed if there’s no demand for your product. Before you invest, look into local competition and customer demand. Is your product trending in your area? (Hint: If it’s Korean fried chicken, it probably is!)
At Bonchon, we provide site selection support so you can build your business in a high-traffic, high-demand location. Plus, with the brand anticipated to grow from 150 to 500 U.S. locations by 2030, our franchisees know they’re investing in a concept with proven demand.
4. What are my long-term business goals?
Try to think beyond opening day — where do you see your business in five to ten years? If you’re interested in opening more locations in the future, try to choose a restaurant franchise like Bonchon that offers support and scalability for multi-unit operators. The right franchise will support your growth, not hold you back.
Questions to Ask the Franchisor Before Investing
1. What kind of support and training do they provide?
One of the biggest benefits of franchising is that you’re not alone. At least, you shouldn’t be! Don’t be afraid to ask the franchisor to explain how they support franchisees in the following areas:
- Site selection and comprehensive training before opening
- Ongoing operational support and marketing resources
- Access to a network of franchisees for guidance
We’re committed to providing Bonchon franchisees with world-class support every step of the way. With our white glove concierge program, you’ll receive a dedicated Franchise Business Coach to help you with everything from picking the perfect location to navigating day-to-day operations.
2. What are the total costs and franchise fees?
No one likes hidden fees, so transparency is key. You should review the Franchise Disclosure Document (FDD) with the franchisor to be sure you understand any initial franchise fees, construction costs, furniture, fixtures and equipment, and ongoing costs such as rent, royalties and marketing contributions, and miscellaneous costs such as technology fees and maintenance expenses.
While the FDD should provide a detailed breakdown, your costs could vary based on local operating expenses. It’s a good idea to ask the franchisor for a full cost estimate. We also recommend asking to speak to current franchisees. Talking to other owners can help you understand the actual financial expectations and any day-to-day challenges that come with franchising.
3. How strong is the brand’s reputation and growth potential?
Brand recognition matters. A major advantage of franchising is that you benefit from an established brand name with a loyal following. Instead of starting from scratch, the right franchise can help your business take off quickly.
Ask the franchisor to explain the brand’s Unique Selling Proposition (USP). You should already have an idea of what you like about the product, but they should be able to explain what makes their brand stand out in a crowded market. Now is also a good time to ask about plans for future expansion and long-term growth. The brand could be having a moment now, but how does the franchisor plan to stay on top?
4. What are the terms of the franchise agreement?
It may not be as exciting as the latest novel, but it’s important to read and understand your franchise agreement from start to finish.
Before you sign, make sure to ask about the following:
- Territory rights: Will you receive exclusive rights in your area?
- Development terms: How many restaurants, and in what time frame?
- Renewal terms: How long is the contract, and what happens when it ends?
- Exit strategy: What will happen if you need to sell the business in the future?
Our franchise agreements are designed to support your long-term success, with clear terms to protect you and your investment. Make sure the franchise you choose has your long-term interests in mind.
Why Bonchon? The Right Franchise for the Right Investor
Choosing the right franchise starts with finding a brand you believe in and a system that supports your success.
Here’s a taste of what Bonchon has to offer:
- A unique Korean fried chicken and food concept with a recipe that customers love
- A white glove concierge program so you feel supported every step of the process
- A scalable business model and multi-unit incentives to help you grow your business
Ready to invest in a franchise that you’ll love to own as much as customers love to eat? Bonchon is the franchise opportunity you’ve been looking for. Take the first step toward franchise ownership today!