How to Start a Food Franchise: A Practical Guide for First-Time Owners

To start a food franchise, you open your own hospitality business under the name and proven concept of an existing brand. You pay the franchisor a fee, and in return you get a ready-made concept, brand recognition and support. It lowers your risk, but it is still genuine entrepreneurship.

Plenty of people dream of running their own place in food and hospitality, then hesitate at the uncertainty: the location, the supply chain, the marketing, the staff. A franchise removes a large part of that uncertainty. You step into a concept that has already proven itself, so you do not have to reinvent the wheel. This guide explains what a food franchise is, the steps to take, where the costs sit, and how to choose a concept that genuinely fits you. We are Potaé, the first and only kumpir chain in the Netherlands, and we are expanding through franchise ourselves. So we know first-hand what is involved.

What is a food franchise, exactly?

A food franchise is a partnership in which you, the entrepreneur (the franchisee), sign a contract with the owner of a food concept (the franchisor). You build your own business under their brand name and according to their methods, and you pay a fee for that right.

This contract is the franchise agreement, and in the Netherlands it usually runs for five years. You get the freedom to run your own location, but within the framework the brand has defined. Well-known examples in Dutch hospitality include McDonald’s, De Beren, La Cubanita and Bagels & Beans.

The heart of it: the franchisor supplies the recipe, you are the chef. The combination of a proven concept and local ownership is what makes it strong.

Hard franchise versus soft franchise

Not every brand gives you the same freedom. Under a hard franchise, almost everything is fixed: the menu, purchasing, fit-out, brand identity and marketing. Under a soft franchise, you have more room to make your own choices. In practice the line is blurry. A brand can be strict on purchasing and point-of-sale, yet flexible on local marketing.

How to start a food franchise: the steps

You start a food franchise through a series of logical steps, from research to opening. Expect a process of several months, depending on the brand and the location.

Research broadly. Look at which food franchise concepts exist and which fit your ambition, budget and town. Gather information and request a brochure from several brands.
Dig into the concept. Study the model, the numbers and the terms. Ask the franchisor for relevant data on revenue, profit and start-up investment.
Talk to existing franchisees. This may be the most valuable step of all. Ask what disappointed them, what surprised them, and what they would do again.
Write a business plan. Map out your target audience, competition, financing and risks. You will need this for funding anyway.
Arrange financing. Decide how much of your own capital you can and want to put in, and how much to finance. Strong brands help with the funding application.
Have the agreement reviewed. Bring in a franchise lawyer or accountant before you sign. After the financial information is exchanged, both parties have a legal four-week cooling-off period in the Netherlands.
Open your location. Some brands deliver turnkey: your shop is handed over ready to go. Training and ongoing support follow.

How much does it cost to start a food franchise?

The cost of a food franchise varies widely by brand. What you need depends on the size and location of the premises, the type of concept, and whether it is a hard or soft franchise. Quoting a single figure would be misleading.

In broad terms, budget for these cost categories:

Entry fee (one-off). A fee you pay at the start to join the brand.
Franchise fee (ongoing). A percentage of your revenue paid periodically. Sometimes a separate marketing or promotion contribution applies on top.
Premises and fit-out. Construction, fixtures, equipment and opening stock.
Working capital. A buffer to carry you through the first months.

One useful insight: a low-complexity concept with a compact kitchen typically needs less investment and fewer staff than a full-service restaurant. How much capital a brand actually requires is set out in its brochure or available from the franchisor. Always ask for those figures and have them checked by an independent adviser.

Pros and cons of a food franchise

A food franchise gives you a proven concept and support, but you give up some freedom and hand over part of your revenue. The right call depends on the kind of entrepreneur you are.

Pros

A proven concept. You do not start from scratch, but with a model that works.
Brand recognition. Customers already know the name and what to expect.
Central purchasing. Collective buying power you rarely get as an independent.
Support. Help with marketing, financing, training and operations.
You can focus. Concept development and purchasing are handled, so you concentrate on execution and your guests.

Cons

Less freedom. You operate within the brand’s framework and cannot influence everything yourself.
You share revenue. The franchise fee and entry fee cost money.
Mandatory purchasing. You often have to buy products and services from the franchisor.
No guarantee of success. A franchise lowers your risk but does not remove it. It remains entrepreneurship.

As Lizan van der Pol, co-owner of Bagels & Beans, puts it in Entree Magazine: the framework of a concept often creates the success, but it can sometimes feel like a drawback. That feeling shows up least when you are a genuine match with the brand.

How to choose the right food franchise

The right food franchise is the brand that is not only proven, but genuinely fits you. A strong personal match with the brand, the location and the way of working is the single best predictor of return.

When choosing, weigh these points:

Does the concept fit you? Doing something close to who you are improves both your odds and your enjoyment.
How strong is the brand? Look at recognition, the number of locations and how long the concept has run.
What support do you get? Turnkey delivery, central purchasing, training and ongoing guidance make a real difference.
What do the numbers say? Ask about revenue, costs, and how many owners started and stopped in recent years, and why.
Is the location right? Research the audience, foot traffic and competition. A great spot for one owner is not automatically great for another.
How low is the complexity? A simple, distinctive concept is easier to run and to scale.

Why a kumpir concept like Potaé is a strong choice

Potaé is the first and only kumpir chain in the Netherlands, and that distinctiveness is exactly what can make a food franchise profitable. A kumpir is a Turkish-style XXL oven-baked potato, fresh and homemade, vegetarian at its core, with endless toppings. Tasty, recognisable and just different from everything around it.

What makes Potaé attractive as a franchise:

A distinctive product. You are not competing as yet another burger or fries outlet, but offering something unique.
Low complexity. The kumpir needs a compact kitchen and a clear, manageable process.
Vegetarian and contemporary. The concept rides the growing demand for healthy, plant-forward food.
A proven foundation. Behind Potaé sits the King Kumpir family business, founded in Amsterdam in 2004. Potaé itself launched in Utrecht in early 2020 and holds a 4.7 Google rating from more than 1,100 reviews.
A fully developed franchise model. Worked out operationally, commercially, legally and strategically, with turnkey delivery, central purchasing, training and ongoing support.

We are currently looking for franchisees for Utrecht, Rotterdam and Hoofddorp, among others. Whether you are taking your first step into ownership or putting your hospitality experience into your own place, we will help you on your way.

Want to know whether a Potaé fits you? Request our franchise brochure with no obligation. It tells you everything about our concept, our core values and how we work together. After that, we are happy to arrange a no-obligation meeting.

Frequently asked questions about starting a food franchise

How much money do you need to start a food franchise?

It varies widely by brand and depends on the premises, the location and the type of concept. Budget for an entry fee, an ongoing franchise fee, fit-out investment and working capital. A low-complexity concept usually needs less. Ask the franchisor for the exact figures and have them checked.

What are the disadvantages of a franchise?

The main drawbacks are less freedom, a required payment (entry fee and franchise fee) and often mandatory purchasing from the franchisor. You work within a fixed framework. A franchise lowers your risk but offers no guarantee of success: it remains entrepreneurship.

Is a food franchise profitable?

It can be, but there are no guarantees. Profitability depends on the concept, the location, the size of your investment and, above all, your own effort. Ask the franchisor for figures on revenue and costs, and speak with existing franchisees about their results.

Can I start a food franchise with no hospitality experience?

Yes. Many brands specifically guide newcomers with training and ongoing support, which lets you run a business anyway. A positive, entrepreneurial mindset and a willingness to work hard matter more than years of hospitality experience.

How long does it take to start a franchise?

Expect several months, from research to opening. The process covers an introduction, the exchange of financial information, a legal four-week cooling-off period in the Netherlands, arranging financing and fitting out your location.

What should I check in the franchise agreement?

Always have the agreement reviewed by a franchise lawyer or accountant before you sign. Pay attention to the fees, the term, mandatory purchasing and the non-compete clause. Under Dutch franchise law, a non-compete clause may last no longer than one year after the contract ends and only within your operating area.

Ready to take the step?

Starting a food franchise is the smartest way to open your own hospitality business without having to figure everything out yourself. Choose a brand that fits you, do your research thoroughly, and have the numbers and the contract checked. Then you step in with confidence.

Thinking of a distinctive, vegetarian concept with low complexity? Explore the franchise opportunities at Potaé and request our brochure. We would love to think it through with you.