Foodservice franchise evaluation

• Franchisor's own locations

  At least 2–3 own locations operating 2+ years profitably. Franchise-only network = unproven model.

• Unit economics

  Demand a real location's P&L: revenue, FC%, payroll, margin, payback. 'Average check 300, traffic 200' is a slide, not economics.

• Franchise fee and royalties

  $10–30k fee for a café is normal; royalties 3–6% of revenue; marketing fee 1–2%. Royalty on profit instead of revenue is a loss-trap.

• Closed locations

  Ask for ALL franchisees over 3 years — including closed ones. If 30%+ closed, the model doesn't scale.

• Mandatory purchases

  Required to buy supplies/equipment from the franchisor? Markup on goods is a hidden royalty. Compare their prices to market before signing.

• The agreement

  Territory protection, exit terms, transfer on sale, penalties. A franchise lawyer reviewing the contract (20–30k UAH) pays for itself.

• Red flags

  'Payback in 6 months', pressure 'only 2 cities left', refusal to show P&L, franchisor without an office/test kitchen.

You're buying a model, not a brand: if the franchisor has no own locations running 2+ years — you're buying a logo. Demand the financial model, franchise agreement, and a list of closed locations.