More and more people are choosing to invest in franchise which operate upon already proven successful business models rather than starting a business from scratch.
If you’re considering starting a franchise business but don’t know where to start, you’re not alone. For first time franchisees the prospect and process may seem a little daunting. So, we’ve put together a handy how-to guide that will help you ditch your 9-5 for good.
It’s not always easy to find a franchise opportunity that suits your skills and budget but choosing the right franchise for you can be a roadmap to a profitable venture, but you’ll need to ensure that you’ve invested in a strong brand, that offers a high-quality Franchise agreement and the right level of support.
4 Step Process to Franchise Ownership
With this four-step process you can’t go far wrong.
1. Do your research. Franchise business agreements are often long-term deals of a minimum of 5 years. You’ll want to ensure you’ve done your research, in terms of projected return on investment after you’ve paid your upfront cost. Calculate your living expenditure and ensure you have sufficient working capital to ensure you have enough money to sustain your lifestyle. You can gain invaluable information by reaching out to other franchisees to gather as much information as you can get on a specific franchise. The most important question being ‘if you had the choice would you do it over again?’
2. Calculate your budget. When it comes to franchising there is always an upfront franchise fee which vary between small sums and amounts you may require a bank loan before. Ensure you never borrow more than you can afford and find an opportunity that falls in line with your personal price range. Some franchises require you have a minimum net worth, make sure you always read the fine print on these qualifications that will determine success for your franchisee application.
3. Interview process. Once you’ve settled on a franchise to invest in. You will be expected to take part in an interview with the franchisor. This is to determine if it’s suitable for both franchisor and franchisee. Each company works differently, this could be done through a series of conference calls or at the company’s headquarters. Pay very close attention to the Franchise Agreement, and don’t underestimate the importance of how much support you will receive from the company through training both during the set up, and for the time your franchise is operational.
4. Sign on the dotted line. Once you’ve ironed out a concrete plan and paid the fee to the franchisor you may have to cover additional investment expenses before your franchise is operational. Franchise agreements typically run the duration of 5 – 10 years with the option of renewal after that period.
There we have it! The 4 simple steps for starting your new franchise business.
Now here’s the tricky part; choosing between the 3,000-franchised brand’s that are all looking for franchisees in the US alone!
Just a few of the options include: Restaurants, Education and Children’s Entertainment Establishments, Personal Services, Fitness Outlets, Beauty and Spa Industry opportunities alongside a whole host of Retail opportunities to explore!
Franchises are good but with TBI it was a problem. So I started a blog brought a licence and now writing an autobiography.
It was far easier. Just a laptop and wifi.
I looked at franchises and figured there is a lot of paperwork. The actual setup and costs are great. But, could not see the pay off when retiring.
But if you want a franchise the above is excellent information.
Thanks for the info, David.