How is buying a franchised pub different from an independent pub?
A franchised pub comes with a set menu, beer list and brand events, and the franchisor approves the buyer and sets remodel cycles. An independent pub gives the owner freedom but often depends on the owner’s personal touch to draw regulars. Each asks different questions of a buyer.
Both kinds of pub sell food, drinks and a place to meet. The difference for a buyer lies in who decides things. In a franchised pub, many choices are set by the brand. In an independent one, nearly every choice is the owner’s, and that is both the appeal and the risk. Know which kind of owner you want to be before you compare listings.
Menu, beer list and brand events
A franchised pub usually follows a standard menu, a defined beer and drinks list and brand-wide promotions or sports packages. That means a set system is already in place. It also limits what you can change for your neighbourhood. An independent pub can write its own menu and pick its own taps, but it must build its reputation on its own.
Franchisor approval and ongoing rules
Buying a franchised pub generally means the franchisor approves you, and it may ask for training and a signed agreement. Read the terms with your lawyer, including renewal and transfer conditions. The pages on who approves a franchise resale and the franchise transfer agreement explain the steps.
Remodel cycles
Brands refresh their look from time to time, and a franchised pub may be asked to follow. Ask when the last remodel was and what the franchisor expects next. An independent pub has no such requirement, but a tired room still costs you regulars, so look at the condition of both.
The personal touch of an independent owner
Regulars of an independent pub often come for the owner. When that person leaves, some of them may too. A franchised pub leans more on the brand and the system. Ask any seller how much of the business is the person, and plan a handover accordingly.
Related reading
13 pages on the same subject, grouped by topic.
Buying
- Expert answerShould I buy a franchise or an independent business?
- Expert answerWhat is a franchise resale?
- Expert answerDo I have to renovate a franchise resale location?
- Expert answerDoes buying a franchise resale require retraining?
- GuideHow to buy a liquor store or licensed bar in Saskatchewan: licences, ownership rules and what transfers
- GuideFood franchise opportunities in Canada: what franchisors publish
- GuideBuying a restaurant in Canada
- Expert answerBuying a pub with the building or on a lease: what changes?
- Expert answerHow do I find a bar or pub for sale?
- Expert answerWhat is different about buying a nightclub instead of a pub?
Due diligence
Sources
This answer is checked against primary sources. Links were last confirmed on the dates shown.
- 01Canadian Franchise AssociationIndustryInterested in Buying a Franchise?
- 02Canadian Franchise AssociationIndustryWhat is a Franchise?
- 03Business Development Bank of CanadaGovernmentHow to conduct due diligence when buying a business
- 04Business Development Bank of CanadaGovernment5 tips to finance a franchise purchase
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