Franchise companies are sought by many savvy entrepreneurs who want to be their own boss but don’t care for the risks and hassles of building a business from the ground up.
Are you ready to be your own boss? Are you considering buying a franchise? There is a lot to consider when choosing the franchise company you want to be a part of.
A franchise is awarded by the franchise company (franchisor) to the buyer (the franchisee). There is an application to submit, due diligence on both sides, criteria to fulfill and much more. You are creating a business relationship, often committing to 10 years, and this is not to be taken lightly.
There are 7 steps to franchise ownership:
1. Find a franchise concept that fits: Look at a list of franchise companies to explore available concepts and opportunities. There are more than 1,100 franchise companies currently registered with the International Franchise Association. You can find many healthy, growing franchise companies at FranchiseSforSale.com.
2. Submit request for consideration/application: Choose two or three industry categories such as casual dining franchise, automotive franchise, cleaning franchise, health care or senior care franchise. Within each category, choose one to three concepts or franchise companies from which to request information. FranchiseSforSale.com has search tools for contacting franchise companies to request information.
3. The Franchise Disclosure Document: Use this document to explore in detail the industry, the franchise company, its business model, the role of the franchisor and the role of the franchisee. The franchisor will provide all of this in their Franchise Disclosure Document (FDD).
This document is required by the Federal Trade Commission (FTC) to help you understand the franchise company model, fees and commitments in the Franchise Agreement. This is the legal document that defines the relationship between the franchisee and franchisor.
The FDD can be over 200 pages long and it is very important that you take the time to read it. Start with the sections that interest you the most, such as fees, restrictions, training, advertising, hours of operation, etc…Learn about your obligations as the franchisee and what the franchisor will and will not provide.
4. Training and Support Overview: One of the greatest benefits to owning a franchise is that the franchise company has done the ground work for you. They have created the concept, researched the market, developed the product and are willing to share their trade secrets, marketing and training programs with you.
The franchisor should provide you with a detailed outline of the kind of support, both operational and marketing, and training you can expect. Franchise companies may provide on-site training or require you to travel to them for training. Some have detailed advertising and marketing support; others provide online and phone support.
5. Franchise Disclosure Review: This is an in-depth conversation or interview with your Franchisor Representative where you will review the FDD and discuss available territory. This is your chance to go through the FDD section by section and ask any questions that may have come up in the process of exploring the franchise opportunity.
6. Franchise Due Diligence: Now you have a good understanding of the franchise company, the franchisor, their industry, marketing, operations and support for franchisees. Before making a final decision you should speak to someone at the corporate office of each franchise you are considering. In addition, you should also contact several franchisees from each to see how they are doing, if they are happy or if they have any complaints.
7. Celebration or Discovery Day: If all goes well this is the final step in the mutual evaluation process before being awarded a franchise business. This is the day you sign the Franchise Agreement and meet the department heads and key executives who will work closely with you as a franchisee.
With so many different types of franchises for sale, and more new franchise opportunities available every day, FranchiSesforSale.com can help you sift through all the information and choose the franchise opportunity that is right for you. Use their proprietary matching system to streamline your selection process and get you on your way to owning your own franchise business.
Subscribe to:
Post Comments (Atom)
The decision of starting a franchise business should be taken lightly even owner should follow some tips like always select a franchise that suits your talents, business and talents. Expect a full training program and confirm that back tools.
ReplyDeletebuying a franchise