Becoming a Young Franchisee: What you need to Know
One of the advantages of starting a new franchise establishment is the fact that you do not need to begin from scratch. Your work as a young franchise owner is to identify and emulate a specific business structure so as to generate profits. A young franchise owner is required to complete a thorough vetting process so as to be approved to run a franchise business. Below are a few things you may need to consider before applying for a franchise opportunity.
1. Carefully consider what type of franchise you want to start
The most common franchise operations include: check cashing, cleaning and food services. It is most advisable that you choose a field in which you have some expertise and experience. This is one of the things that the parent company will be considering before allowing you to start the franchise. Having some experience in business management will also help during the evaluation process.
2. Search for opportunities in your respective industry
As a person looking to start up a franchise business, it is advisable that you look for opportunities in your field of expertise. You can search for available opportunities around the internet and the media.
3. Consider the terms and conditions
You must carefully examine the terms and conditions surrounding the franchise opportunity you are interested in. This is to ensure that the terms and conditions set therein are fair and are aligned with your interests. Secondly, it is important that you find out how much the initial investment will cost as well as all the credit requirements needed.
4. Investigate the parent company
It is important to check the franchisor’s background so as to find out their standing and reputation in the business community. A background check can be conducted at the American Association of Franchisees and Dealers.
5. Research the area you want to set up the franchise
This is done to determine whether the area you want to set up your establishment has a genuine demand for that particular type of business. It is a common practice in the field of franchising and, normally, franchises will conduct a research of an area before offering interested parties an opportunity to invest. It is incumbent upon you as a young franchise owner to do your own research so as to gauge interest in the products and services you are offering.
6. Carefully review your application and satisfy all the requirements
Please note that failure to comply with the requirements of the parent company may lead to your application being thrown out. During the application process, it is highly likely that you will be required to furnish the parent company with well-detailed background information about yourself, your social security number, your occupation, your credit profile, and proof that you are able to acquire or borrow the money needed to start up the franchise.
7. Consider the parent company’s response
Upon receiving a positive response from the parent company, you will be given detailed instructions on the steps to take. The instructions will contain details of the franchise agreement which may include: a schedule for attending training sessions, borrowing of funds and establishing a lease where applicable.