FAQ: Everything you need to know about owning your own healthy restaurant franchise

Introduction to franchising

What is a restaurant franchise?

A restaurant franchise is a business model in which a restaurant brand allows other entrepreneurs (that’s you!) to use its name, systems and operations to run their own individual restaurants. In exchange for the use of the brand and support from the franchisor, the franchisees pay an initial franchise fee and ongoing royalties based on sales. It’s a turnkey business that allows you to leverage the knowledge, reputation and success of an established business so that you can focus on growing your business.

What are the advantages of owning a franchise restaurant?

You’ll benefit from a proven business model. This means that you aren’t starting from scratch and you’re investing in a brand that has already demonstrated its success. The support and training you’ll receive will ensure you’re able to run your business efficiently and effectively. You’ll enjoy the purchasing power of a franchise system, meaning your supplies and inventory will be less expensive than what an independent restaurant owner pays. And finally, you’ll have the use of advanced systems which will help you stay ahead of the competition.


What makes Mad Radish one of the best Canadian franchises to buy?

The future of fast food is healthy and our customizable menu is ready to meet the demands of this growing customer base. We operate two stand-alone brands in each store, reaching an ever wider audience without adding complexity to our operations. We have excellent reviews on UberEATS and our own online ordering is cutting edge and data driven.

How much is the franchise fee?

Our franchise fee is $35,000 and covers the cost of assistance in the selection and building of your Mad Radish store, initial training of the operator, and access to our extensive training material and HR best practices. It does not cover any construction or store opening marketing costs. 

What are the royalty fees?

5% royalty fee paid monthly, based on gross sales.

What is the marketing fee?

3% advertising fee paid monthly, based on gross sales. This fee will cover the cost of social media marketing, digital advertising, centralized customer service, and campaigns to support product launches and brand building. A portion of the fee will be allocated to the franchisee to manage community marketing like sampling and sponsorships.

How much liquid capital do I need?

$100,000 – $150,000

What is the average startup cost?

The cost to open a Mad Radish ranges between $375,000 and $475,000.  You’ll also want $100k to $200k in working capital for the first two years.

How long does it take a store to get opened?

From application to store opening, the process will take between 9 and 12 months. The nature of the site will have an impact on timing with existing sites taking about 8 to 12 weeks and new constructions being at the discretion of the landlord.

What can I expect as ROI?

Canadian franchise laws prohibit restaurants from giving potential franchisees information that could lead to any expectations of future earnings. That said, the ‘Franchise Disclosure Document’ will outline the average costs of operating a Mad Radish.

Do you offer financing?

Not at this time.


What support is available for a new store opening?

We’ll be by your side, helping you get ready for the big event: your store opening!  We’ll be supporting you in store development, franchisee training, operations, and marketing and community outreach.

What training will I receive?

Our team of experts will train you in food preparation, purchasing and operational systems, accounting and administration, human resources, employee training, customer service and community marketing.

What kind of support can I expect after opening day?

Once your doors are open we’ll continue to offer support, ensuring your success every step of the way. Accounting, marketing, IT and operational support is just a phone call away.

Who selects the site for the store?

Site selection is crucial to the success of a Mad Radish and as such, all sites must be approved by our leadership team. Assistance is provided in lease negotiations and site selection.


Who designs and builds the store?

Mad Radish will select the contractor and our in-house branding and store development experts will provide the design and drawings for your location. We’ll also assist with permitting, equipment and signage. All the costs of the design and drawings, and all build and equipment costs will be your responsibility.


Do I need to source my own supplies?

No, we’ve taken care of all of that! Food, compostable packaging, cleaning supplies and equipment vendors have been chosen by Mad Radish. This means that you can focus on making delicious food and growing your business. 

How many employees will I need?

Every location is a little different, but on average you will need 8-12 full and part time staff. Franchise partners may be very hands-on, operating and managing their location, or they can partner with someone who will dedicate themselves to the full time management of the store. 

Where is Mad Radish opening franchises?

Mad Radish plans to become the most popular national healthy fast food restaurant chain in Canada. We are currently focusing our expansion in Ontario, with opportunities in Toronto (GTA), Ottawa, Kingston, Windsor, Barrie, Guelph, Hamilton, Kitchener, Waterloo, London, Mississauga, Whitby, Oakville, Etobicoke and many other cities.

Need more information? We’re here to help you. 
Contact us at franchising@madradish.com