The 7 Steps to Becoming a Franchise Owner
Franchising an existing business is one of the options for a budding entrepreneur. It comes with several benefits and advantages like a proven brand record, aligned market, operational and marketing support. Selecting a suitable Franchise can be a daunting task.
However, just like any other entrepreneurial venture, you have to research on the steps of how to get it right with setting up a franchise.
These are the seven steps that you need to follow when buying a franchise;
1. Choosing the franchise
You need to research on the different types of franchise available. You also need to learn on what to expect, the process and other general knowledge. It is when you will be able to settle on the specific franchise you want depending on your preferences, costs and the regulations.
One of the best places to check information about the franchise is online. You can visit the existing franchise’s websites to see services offered. For in-depth information, you should also consider looking into the reviews and testimonials. When choosing a franchise, you should have a long-term strategy of acquiring equity.
After settling on the franchise that you would like to set up, you will send an application to the existing franchises. Upon which they will invite you for a day of disclosure.
This is the day you will spend with the franchise representatives learning about their services, values, policies, cultures, and any other thing you deem essential.
It is also an opportunity for the existing franchises to know more about you. They will gauge your qualifications and determine whether you are best fit to work with. This is the opportunity to show commitment to the product or service.
3. Reviewing Franchise Agreement
You will need to consult your attorney to help you go through the franchise agreement which the existing franchise serves you after the day of disclosure.
Given that it is the legal binding, you need to understand the terms and regulations provided for and be sure that you are comfortable with them.
Also, ensure that the agreement covers every deal made on the closure day.
4. Funding the Franchise
You need to ensure that you have your funding ready when buying a franchise. You need to pay for the expenses incurred during the process, as well as the cost of setting up.
There are several funding options that you can use to set up a franchise, such as, loans, crowdfunding and seeking for investors.
5. Disclosure Review
At this point, you need to take another proper scrutiny of the franchise agreement to ensure that you are ready for what you are signing up for with some help of professional franchise resources.
You will have the opportunity to clear any issue that has come up in the process of understanding the deal.
6. Due Diligence and Training
You need to take more time in looking at the operations of the existing franchise opportunity, observe how the other similar franchises have faired.
Only when you are assured, then go ahead and start getting ready your approved preferred location.
This is also the point to take necessary franchise training programs based on your agreement with the franchise.
7. Closing the deal
The final step involves signing the franchise agreement as you work closely with the existing franchise to set up your business.