June 03, 2024

The ultimate handbook for franchising your restaurant in Singapore

Thinking of expanding your restaurant? Congratulations! Franchising is a great way to grow. It helps you reach more customers, boost brand recognition, and even consider mergers or acquisitions. Ready to start? Let’s go through the steps to franchise your restaurant. This guide is for restaurant owners wanting to open more branches and become the main company. Let’s get started!

What is restaurant franchising?

Restaurants can grow in different ways:

  • Use your profits to grow.
  • Get investors to help expand.
  • Franchise: Use the resources and know-how of a bigger company.

Franchising lets you grow your brand by using the money and effort of others. Big names like McDonald’s and Domino’s Pizza show how successful franchising can be.

The pros and cons of franchising

The good:

Brand recognition

Franchising lets you use a well-known brand, saving you money on advertising.

Ready customers

You can attract customers who already know and like your brand.

Proven success

A franchised restaurant uses a tried-and-tested business model, which makes success more likely.

The not-so-good:


Starting a franchise can be expensive, with fees ranging from SGD 30,000 to SGD 500,000, not including other expenses like rent, equipment, and staff.

Limited creativity

Franchise agreements might stop you from changing the menu or trying new things.

Financial monitoring

The company you franchise from might keep an eye on your finances, which some might find intrusive.

How to start franchising your restaurant

1. Check if it’s a good idea

Think about:

  • Can you handle running more than one restaurant?
  • Do you have enough money to cover costs for both you and your franchisee?
  • Is there enough demand for your restaurant in new areas?

2. Make a plan

Your plan should cover:

  • What you want to achieve
  • How much money you have and will need
  • What your brand stands for

A good plan helps you grow and attracts potential franchisees.

3. Get money

You can:

  • Use your own money
  • Get a loan from a bank or credit union
  • Get franchise fees from franchisees

4. Sort out legal stuff

In Singapore, it’s a good idea to have a separate company for franchising. This means:

  • A main company (like Axia Franchising Pte Ltd)
  • Your original restaurant company (like Axia Eats Pte Ltd)
  • The first franchise location company (like Axia Eats Orchard Road Pte Ltd)

This keeps things separate and protects each part of your business.

5. Make a manual

A manual helps everyone run franchise restaurants the same way. A manual should cover:

  • Menu preparation
  • Dress code
  • Payroll processes

6. Find franchisees

Look for people who:

  • Know a lot about running restaurants
  • Have enough capital
  • Have a good record of running businesses

7. Advertise and start

Good advertising is key to a successful opening. Think about hiring a marketing company to handle social media and promotions.

8. Support your franchisees

As you get more franchises, you need to support them. This means:

  • Making sure they maintain brand identity
  • Helping them with operational challenges
  • Overseeing finances

9. Check how you’re doing

See how well your franchises are doing by looking at:

  • Profitability
  • Customer satisfaction
  • Brand reputation

10. Plan for the fut3ure

Keep updating your plan to make sure you’re ready for what’s next. Think about things like:

  • Changing your brand’s image
  • Adding new things to your menu
  • Where do you source your ingredients from
  • Hiring and training staff

Smart City Kitchens: Succeed together

Expanding your restaurant through franchising in Singapore is a smart move. With careful planning, financial security, and strong support, you can create a successful franchise. Smart City Kitchens offers affordable options, saving on expensive shop rents so that franchisees can try new markets without high costs. Plus, our kitchens let you test new menu ideas or reach more delivery customers easily. Learn more at Smart City Kitchens.

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