Franchise restaurant is becoming a popular business model in Vietnam because of its low risk and avoiding friction with the market. Together Long Phuong Porcelain Learn more about the franchise restaurant business model here.
1. Explain what is a franchise restaurant? The basics of franchise restaurants.
Franchise restaurant is a business model in the F&B industry in which the owner of a restaurant brand (referred to as “franchisor“) allow other individuals or entities (referred to as “franchisee“) using established brands, practices, and business processes.
The franchisor will pay the franchisor an initial fee along with a portion of the revenue or a fixed fee over time such as a trademark rental.
Chain of 12 famous franchise fast food restaurants in Vietnam.
The basics of franchise restaurants are shown in the following table:
| Criteria | Franchisees | Franchise Buyer |
| The form | Transfer of ownership | Buy franchise |
| Responsibility | Responsible for establishing and maintaining a successful business model, which may include products, services, operational processes, management systems, advertising and business support. | Pay the franchise fee and fulfill the requirements and terms according to the signed contract. Comply with the standards established by the franchisor to ensure the reputation of the franchisee brand. |
| Right | Receive expenses from the franchisee to pay. | Allowed to join the franchise network and use the brand. They will also receive support and training from the franchisor on how to run a business and run a business. |
2. What types of restaurant franchises are there?
There are 4 type of restaurant franchise, that is:
- The type of franchise restaurant that participates in management. With this type, in addition to being franchised with brand ownership, business formula. The franchisor will then be supported by the franchisor to manage and operate.
- Type of franchise restaurant with capital investment. Theo đó, bên nhượng quyền nhà hàng sẽ tham gia góp vốn với tỷ lệ nhỏ nhằm trực tiếp tham gia kiểm soát hệ thống.
- Type of franchise restaurant according to the comprehensive business model. With this type of model, the franchisor will transfer at least 4 basic types of products, including: system strategy or operating process, know-how, brand system, and products and services. . The franchisor must pay the initial franchise fee and the operating fee to the franchisor.
- The type of restaurant franchise under the business model is not comprehensive. This type has more comfortable terms and principles. Accordingly, the franchisor will transfer the right to distribute products and services; or formula franchising; or franchise to the franchisor.
3. Top famous franchise restaurants in Vietnam today
3.1 KFC franchise
A famous brand of fried chicken around the world. With more than 14,000 stores in more than 100 countries, accounting for more than 50% of the fast food market.
- Franchise costs range from $1,300,000 to $2,500,000.
- For information about KFC's franchise, visit: www.yumfranchises.com.
3.2 Lotteria franchise brand
Lotteria entered the Vietnamese market in 1998 and is a strong competitor to KFC. Although coming later, this brand quickly took the lead in the fast food market in Vietnam. Lotteria franchise restaurant business offers many opportunities for success for you.
- Franchise fee is about $250,000.
- Refer to Lotteria's franchise information at: http://www.lotteria.vn.
3.3 Pizza Hut . franchise
This is a well-known brand in the worldwide pizza industry. Pizza Hut currently has about 6000 restaurants in the US and more than 16,000 points of sale in more than 100 countries around the world.
- The franchise cost of Pizza Hut is from $300,000 to $2,200,000.
- For more information about Pizza Hut's franchise, please visit: https://infranchise.vn/en/product.
3.4 Domino's pizza franchise
Pizza Hut's rival. Domino's pizza has about 12,000 restaurant members and franchises in more than 80 countries around the world.
Domino's pizza stands firmly in the market not only because of the best quality pizza, but also thanks to the fastest, most professional delivery service.
Through nearly 60 years of experience, by applying advanced technology, Domino's pizza has affirmed its strong reputation on a global scale.
- Domino's Pizza franchise fee is at least $250,000.
- For information on franchises of Domino's Pizza, please visit: https://villaland.com.vn/.
3.5 Pizza Company franchise
This is also one of the quite successful brands in the pizza industry in the world. The level of recognition of this brand in Vietnam is also quite popular. Set foot in Vietnam in 2013, after 5 years this brand has 50 restaurants across Vietnam.
This is really a brand worth investing in.
- Minimum franchise fee from $300,000.
- For information about The Pizza Company franchise, please visit: https://thepizzacompany.vn/vn/.
3.6 Subway franchises
With more than 40,000 stores in 110 countries, Subway is one of the most popular brands in the world.
- Franchise costs range from $120,000 to $300,000.
- Refer to Subway's franchise information at: subway.com
3.7 Jollibee franchise
As one of the giants of the fast food industry in Asia. In Vietnam, Jollibee has more than 100 stores nationwide.
- Franchise fees range from $250,000 to $300,000.
- Consult Jollibe's franchise information at: https://jollibee.com.vn/.
3.8 Burger King Franchise
Joining the Vietnamese market since 2011, Burger King currently has nearly 20 stores in Hanoi and Ho Chi Minh.
- Franchise fees range from $50,000 to $300,000.
- Check out Burger King's franchise information at: https://burgerking.vn/.
3.9 King BBQ franchise
This is quite a famous brand in the buffet restaurant market. Currently, King BBQ has 24 restaurants across the country, with 3 franchise restaurants in Ha Long, Lao Cai and Bac Ninh.
If you want to avoid risks and gain a strong foothold in the buffet restaurant market, you can choose to invest in King BBQ.
- Consult King BBQ's franchise information at: https://kingbbq.com.vn/.
3.10 Thai Express Franchise Brand
In Vietnam, Thai cuisine is very popular with diners. Therefore, investment in Thai Express is extremely potential. According to analysis from Franchise of Thai Express, all franchise stores have paid back and made profits within 24 months. The brand is also committed to supporting customer partners continuously to ensure the best business performance.
- Please refer to Thai Express's franchise information at: http://amthuc.thaiexpress.vn.
3.11 Franchise brand Ribs Tree
Rib Cay is a pioneer brand in the "baking and beer" model with a very cool space and a modern smoke extraction system at the table. Ribs attracts customers by the quality of delicious, high-class dishes, exclusive marinated sauces, attentive staff. Currently, this brand has 9 restaurants in Vietnam.
- For more information about Suon Cay's franchise, please visit: http://suoncay.com.vn/.
3.12 Pho 24 . franchise
Pho 24 was born in 2003, voted as one of the 4 best pho brands. Currently, this brand has 60 restaurants operating in Vietnam. Although it is a traditional brand, the business model of Pho 24 is deeply Western. Franchise fees for this franchise range from $20,000 to $25,000.
- Consult franchise information of Pho 24 at: https://www.pho24.com.vn/.
3.13 Dookki franchise
Dookki currently has about 39 branches nationwide. As a brand specializing in hot pot buffets, Dookki is remembered by customers as a standard Korean tokbokki restaurant chain. With a bold Korean menu and very affordable prices, Dookki attracts many diners who love Korean cuisine.
- Refer to Dookki's franchise information at: 028.6287.3450
3.14 Franchise brand of Phuc Loc Tho broken rice
The traditional dish of Saigon - broken rice, is not only preserved by Phuc Loc Tho but also introduced to customers. From 3 stores, Phuc Loc Tho has quickly covered the broken rice market in Ho Chi Minh with more than 30 restaurants. With this potential, Phuc Loc Tho broken rice is one of the choices worth investing in.
- Refer to the franchise information of Phuc Loc Tho broken rice at the address: 234/3 To Ngoc Van, Linh Dong ward, Thu Duc city, HCMC.
3.15 Kombo rice cooker franchise
Inspired by Singaporean cuisine, Kombo rice pot brings a unique flavor from the Lion Island, which was born in 2014. Currently, this brand has two franchise forms: exclusive regional development and universal franchise. pine.
If you are interested in the Singapore food business, do not ignore this potential franchise.
- Consult franchise information of Kombo Rice Pot via email: kombofranchise@gmail.com.
3.16 KiKo grilled hot pot franchise
This is a famous brand of grilled hot pot in Thanh Hoa. With a cozy restaurant model and a typical hot pot flavor, KiKo offers diners intimate gatherings with friends and family. KiKo now has a franchise policy for those who are interested.
- Consult the franchise information of KiKo hot pot restaurant at kiko.vn
3.17 Franchise Trademark of Hot Pot Phan
Is a famous brand of Australian beef buffet in Hanoi. With a typical hot pot flavor and reasonable price, Phan Hotpot always attracts the attention of diners. This brand currently has 12 branches, mainly in Hanoi.
- Refer to information about the franchise of Lau Phan at: http://www.lauphan.com/.
3.18 Kichi Kichi . franchise
This is the leading conveyor belt hot pot buffet restaurant chain in Vietnam. Born in 2009, Kichi Kichi attracts diners with its 100-course menu and unique conveyor belt experience. Currently, this brand has 29 restaurants nationwide. Lowest transfer fee from $300,000.
- For information on Kichi Kichi franchise, please visit: https://kichi.com.vn/lien-he/.
3.19 Pizza franchise 3 Beards
Pizza 3 Beard's business model is fried chicken - pizza - milk tea. Currently, Pizza 3 Beard is developing quite stably in Ho Chi Minh market, and has ambitions to expand nationwide. With the criterion of "delicious - beautiful - hygienic", Pizza 3 Beard will be an attractive investment choice for customer partners.
- For information about Pizza 3 Beard franchise, please visit: https://3rau.vn/nhuong-quyen/.
3.20 Pizza franchise 4P's
Pizza 4P's has more than 20 branches across the country. A special feature of this brand is that the pizzas are made from organic ingredients, ensuring freshness and full of nutrients. With its thoughtfulness and sophistication, Pizza 4P's satisfies even extremely fastidious customers.
- For information on Pizza 4P's franchise, please visit: https://online.pizza4ps.com/.
What is a Restaurant? Common types of restaurant classifications
4. 5 notes when operating a franchise restaurant
4.1 Understanding the nature of a franchise restaurant
Not all restaurant chains are franchisees equally.
Franchisees are investors. They are allowed to buy the rights to open the restaurant, and will pay the franchise fee to the franchisor. Thereby, the franchisor is obliged to provide training in marketing, advertising, menu design and problem solving for the franchisor.
4.2 Understanding a reasonable franchise restaurant model
To ensure a smooth business process, minimizing opportunities and risks. Before deciding to receive a franchise, you should thoroughly research the franchise brand. At the same time, research the market and budget to choose the right restaurant franchise for you.
4.3 Consider your financial situation
The restaurant franchise business is a rather expensive investment. Franchise fees, start-up costs, and other up-front costs are also very expensive. In addition, some brands have their own requirements related to your capital and experience in the restaurant industry.
4.4 Making a business plan
For a smooth business process, you need a detailed and specific business plan. Also learn about the financial history of that brand. And don't forget to survey the financial situation of the population in the pre-business area.
4.5 Signing the contract
Before signing the contract, the most important thing you need to pay attention to is:
- If the restaurant franchise fails, are there any binding terms between the two parties?
- How much do you pay the franchisor on a recurring basis? For how long? And how to pay?
- Did you get any money from the money invested?
See details: How much money does it take to open a restaurant?
5. Advantages and disadvantages of franchising restaurant business.
Favorable:
- The first thing you get when franchise restaurant business is the opportunity to work with a brand that already has a reputation and recognition. You do not lose effort to build a brand, but still receive the trust and attraction from customers.
- With an established business model. Every process is tested and optimized, it helps you to reduce risks and mistakes, easier to succeed.
- When you run a restaurant franchise, you receive support and training directly from the franchisor. They will help you in running your business, managing employees, marketing and maintaining service quality.
- You are also regularly consulted by the franchisor to provide marketing and advertising strategies to create brand awareness on a large scale.
- With the franchise restaurant business model, you have the opportunity to expand your business across multiple locations quickly.
Hard:
- The starting capital is quite large. You will have to pay the initial franchise fee. And it may take a large investment to start a business. There are also fees for advertising, marketing, etc.
- Must share profits. A portion of the profits from the business will have to be shared with the franchisor. This can be less profitable than running an independent business yourself.
- Limit creativity in business. When operating a restaurant franchise, you will have to follow the rules and instructions of the franchisor. This more or less affects your ability to self-determination and creativity in business.
- Compete in the franchise restaurant system with each other. Even within the franchise network, you may encounter competition in attracting customers and maintaining your distinction from other stores.
6. Some Frequently Asked Questions
6.1 Should you franchise a restaurant or open your own restaurant?
Each model has its own pros and cons. Learn and consider which model is right for you to make the most informed choice. For a more comprehensive view, please read the comparison table below:
| Comparative Criteria | Franchising | Open your own shop |
| Initial Responsibilities | You inherit the reputation of the brand without having to work on developing it. However, you are required to follow all available processes and procedures, without being allowed to create your own ideas. | You do not need to follow cumbersome procedures, you can develop your own personal imprint. But, in return, you have to build your own business plan. And have to develop the brand by yourself. |
| Creativity in business | You will be consulted and supported by the franchisor with the design of the decoration, as well as the menu. But you have to conform to what is available without the freedom to create. | You are free to develop your brand according to your ideas. This requires you to have the ability to predict and grasp the trends of the F&B industry. |
| Investment | You need a certain amount of capital, and must pay the costs according to the signed contract. | You are entitled to all trading profits. And can move the original investment capital by itself. However, you have to account for the detailed costs yourself and balance those costs accordingly. |
| Business experience | You get the operating experience capital from the franchisor. Thereby, learning their business secrets. And thereby reducing the level of risk, increasing the probability of success. | You must decide every situation for yourself based on personal experience without any verification. So you run the risk of failure. |
6.2 Is the cost of franchise restaurant business high?
Cost for one franchise restaurant business model It will cost you quite a bit. However, there is no universal price for each brand. But in order for the business to run smoothly, you should prepare about 500 million dong.
6.3 Where is the reputable place to buy dishes for restaurant franchise business?
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Buy dishes for franchise restaurant business At Long Phuong, customers will receive many attractive incentives. The more you buy, the higher the discount.
7. Final verdicts
Above, Long Phuong Porcelain has just provided readers with information about franchise restaurant business. Hopefully, the article is useful to readers.
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CEO of Long Phuong Group Joint Stock Company, with more than 20 years of exploration and research to obtain the best formulas and professional experience, Long Phuong Porcelain has produced more than 400 designs of all kinds of household porcelain, Significant contributions to Vietnam's ceramic industry.
