Knowledge about yourself: What made you think about opening a franchised business? Are you ready to work for long hours, even on weekends and other holidays especially in the early stage?
Take the assistance of a Franchise Consultant: In this era of advanced technology, all the information is available online, but still it’s advisable to take the assistance of a franchise consultant. A franchise consultant has all the required knowledge to help you guide through the process. A franchise consultant will help you with the complicated topics like agreements and FDD (Franchise Disclosure Documents) in a more understandable manner.
Thorough Research: What kind of businesses can survive in your area and are those businesses of interest to you? A proper research is required before taking any decision.
Attend a ‘Discovery Day’: A discovery day is a meeting between the franchisor and the franchisees, where the franchisees see the presentation which showcases what the franchisor will offer in terms of support and franchisees can ask questions. This meeting usually takes place at a local outlet, but most of the times at the company’s corporate office.
Take the views of Other Franchisees: You will find a list of all the present franchisees in the franchise documents provided by the franchisor. One must contact few of them and get all the essential information.
Find a Suitable Location: Not only the choice of brand matters, even location is of vital importance as if you’re located in a low traffic area or in an area where there are no supporting or complementary businesses around, how is your business going to survive?
Choose a Franchise and Secure Funding: After you’ve gathered all the required information, it’s time to make the big decision, i.e. of the choice of franchise system in which you will invest. Once you have taken the decision, it’s time to draw a business plan and present it in front of the potential investors.
Sign the Agreement: Like any other deal, it also requires signing of necessary documents like franchise agreement. Most of the franchisors have rigid agreement, but there are some who may be more flexible in regards to negotiating in the agreement.
Obtain All Permissions and Insurance: One has to comply with the law and this is no exception. Every industry has its own rules and regulations which one has to follow. Moreover, regulations will vary by state, city, country, etc. One must check with the local authorities to ensure the compliance.
Hire Staff and Attend Training: The number of staff members hired varies with the type of franchise chosen. Franchisors provide training in a combination of theory and practical knowledge at least to the franchisee and manger.