What should I check before buying a healthy fast food franchise?
For a salad, bowl, wrap or smoothie franchise, check how fresh produce is bought and wasted, how much prep labour each item needs, whether demand holds beyond a trend, how reliant the store is on weekday lunch, and how often the franchisor changes the menu. Ask owners of the brand to show you real numbers for each.
Healthy quick service has its own pressures. Ask how fresh ingredients are stored, how much prep the store needs and how quality is kept steady. The checks for a franchise in this field differ from those for a burger or chicken concept. Use the points below to shape your questions to the franchisor and to current owners.
Produce, spoilage and prep
Fresh produce, greens and fruit can lose value quickly in storage. Ask owners how much is thrown out in a typical week, who orders, and how often deliveries arrive. Then look at prep: chopping, portioning and blending take time before opening and during service. Ask how many staff that needs and whether the brand’s prep steps are realistic for a small crew.
Trend or lasting demand
Ask how steady demand for the concept has been over time. Ask how long the brand has operated, whether older stores still do well and how it keeps regular customers coming back. Look closely at the franchise’s growth and closures. The food franchise opportunities guide can help you frame questions about a brand’s track record.
Lunch traffic and menu changes
Ask when the store sells most of its food and who its customers are. Ask what the store does on evenings and weekends and what happens when nearby workers stay home. Then ask how often the franchisor changes the menu, who pays for new ingredients and equipment, and whether owners can say no to changes that do not suit their local customers.
Related reading
15 pages on the same subject, grouped by topic.
Buying
- GuideFood franchise opportunities in Canada: what franchisors publish
- Expert answerHow do I check a fast food franchise’s staffing before buying?
- Expert answerHow do I check a fast food franchise’s kitchen equipment before buying?
- Expert answerHow do I read a fast food franchise’s brand audit reports before buying?
- Expert answerWhat does a fast food franchise owner do day to day?
- Expert answerHow can I check whether a food franchise is profitable before I buy it?
- Expert answerHow does seasonality affect buying an ice cream shop?
- Expert answerWhat should I ask the seller during a fast food franchise handover?
- Expert answerWhich running costs should I review before buying an ice cream shop?
- Expert answerWhat should I check before buying a fruit and produce store?
- Expert answerHow do I check where a fruit market buys its produce?
- Expert answerHow do daily produce prices affect a fruit market I want to buy?
- Expert answerHow do I find a poke restaurant for sale in Canada?
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 03Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
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