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Franchising a Restaurant Brand: Six Questions to Ask Before You Sign

Chashe Tea Club · 24 Oct 2026 · 阅读中文版

Short answer: before you take on a restaurant franchise, get six things clear. Who is the brand owner, and can you find them through official sources? Does the other side have the right to grant a franchise in your country? What is each fee for, and when is it refundable? Which parts of the supply, training and site support are written into the contract? How are local food licences and hygiene requirements handled? And is the other side pushing you with "can't lose" or "last slot" lines? A franchise is a partnership, not a guarantee. Check local rules with official sources first.

1. Question one: who is the brand owner?

Many franchise disputes start with not knowing who you are actually signing with. Before signing, establish:

The contracting company's full name and registration details, and whether they can be found through official sources; see How to check if a company is real;
How the contracting company relates to the brand owner: the brand owner itself, a regional agent or a master franchisee;
Who owns the brand name and trademark, and whether the appropriate rights exist in your country.

2. Question two: can they grant the franchise?

Cross-border franchising often involves layers of agents. If the other side is a regional agent, ask for the brand owner's written authorisation, and check that it covers your country and city and runs long enough. If the chain of authorisation is unclear, supply and brand use may become problems later.

3. Question three: what is each fee for?

Franchises usually involve many fees: franchise fee, deposit, royalty or brand fee, design and fit-out, equipment, first stock order, training and management fees. We suggest you:

Ask for a complete fee schedule;
Have each fee's purpose, amount, payment date and refund conditions written down;
Make sure the payee matches the contracting company;
Be wary when new fees keep appearing after signing.

4. Question four: is the support in the contract?

Support promised during the sales pitch only counts if it is in the contract. Focus on:

Supply: must you buy through channels the brand designates, at what prices, and how can prices change?
Training: content, duration, number of people and cost;
Site and fit-out: is help provided, and who sets the standards?
Operating support: supervision at opening and afterwards;
Territory protection: will other franchisees be granted the same area?

5. Question five: how is local compliance handled?

Opening a restaurant usually involves a business licence, food hygiene, fire safety and signage rules, and some countries have specific rules for foreign-owned food businesses. These vary by country and city, so check with official sources and consult local professionals. Before signing a lease, confirm that the landlord owns the property or may sublet it, that restaurant use is permitted, and that the term, deposit, renewal and early-termination conditions are clear.

6. Question six: are they rushing you?

"Last slot", "discount if you sign today", "can't lose, payback in a few months" are all signals to pause. A legitimate franchisor gives franchisees time to read the contract and visit outlets. If the other side gets impatient as soon as you mention checking, or sweetens the deal straight away, slow down.

7. Tips for site visits

Visit existing outlets in person, ideally more than one;
Where possible, talk to current franchisees about how business really goes;
Treat the figures the brand provides as reference, not as a promise;
Build your own conservative cost and revenue estimate.

Also prepare for the case where things do not go well: the contract should state the conditions for early termination, how fees already paid are treated, and what happens to equipment, fit-out and stock after termination. Planning an exit is not pessimism; it is taking responsibility for your investment.

8. Pre-franchise checklist

The contracting company is verified through official sources and its relationship with the brand is clear;
The chain of authorisation is complete and covers your country and city;
You have a full fee schedule, with purpose and refund conditions for each fee;
Supply, training, site, operating support and territory protection are in the contract;
Local licence, hygiene and fire-safety requirements are checked with official sources;
You have visited existing outlets and made a conservative estimate;
You did not sign under pressure, and a local lawyer has reviewed the contract.

Closing

Get clear on the brand owner, the fees, the support and local compliance before you decide. If you are looking for a franchise brand, a restaurant partner or premises, or you are a brand looking for franchisees, post your project at Chashe; contacts are shared only when both sides agree. Have a need? Come to Chashe. Have resources? Come and connect. Join the Chashe group