Ever wondered how to get started? This list will give you a general overview of the path to franchise ownership.
1. Definition: gain a deeper understanding of franchising by researching and familiarising yourself with it as a way of doing business.
2. Self-evaluation: check your finances – do you have enough cash reserves or can you secure a loan to invest in and sustain a franchise until it begins to profit? Are your temperament, lifestyle preferences, health, family obligations, and willingness to work suited to opening a franchise business?
3. Research: do the research on the industries, the market segment and the competition in your specific area. What kinds of business can your region sustain? Are they the types that you’re interested in? Use these factors to narrow down your franchise search into a small number of contenders.
4. Details: contact each candidate and request a franchise information pack. Compare them.
5. Have a chat: talk with other franchisees in these companies to get a hands-on, practical viewpoint on the pros and cons of the business.
6. Find the experts: establish a business relationship with an accountant to review your finances, and with a solicitor to review the legal obligations involved in franchising.
7. Examination: carefully scrutinise each franchise’s details with your accountant and solicitor to assess the business proposition and its earning potential.
8. Choices: pick an exact location based on your target market, the competition, and your capability to meet any site requirements. Decide which franchise system you are going to invest in.
9. Convince: write a credible business plan to present to the franchisor and potential financial lenders.
10. Agree: review the franchise agreement with your accountant and solicitor to ensure that it matches the original description you received. Make sure you understand all the terms, and see if any of them can be altered and made more favourable for you as the franchisee. Sign the agreement.
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