Category : Business Service
Having a franchise means you’re getting on the bandwagon of an idea that’s already proven successful. Of course, as with any business, there are still challenges involved in starting a franchise and running one. As much thought will have to go into location, hiring, and management as any other type of business, even with the business model and brand laid out for you. And for some entrepreneurs, the loss of control (you are ultimately overseen by the franchisor) can be a challenge to the fiercely independent.
So you now know that you’ll have to find the right franchisor if you wish to become a franchisee. You want a popular brand, and a company with a good reputation for supporting its franchisees. How do you get there?
1.Know your budget. The first thing you should know is that there is always an upfront franchise fee, and franchisors often have financial requirements for whom they’ll allow to open one of their franchises. Go over your personal finances and assets so you can start looking for opportunities in line with your price range
2.As with so many things, do your research. For example, a Cafe yummy franchisee must have a net worth of 800,000 dollars. If that isn’t where you’re at financially, look elsewhere. You don’t want to waste time dreaming up your plans to open a specific franchise, only to look at the fine print and realize it’s not a good fit.
3. Reach out to the franchisor and other franchisees. You want as much as detail and first information as you can get about what it’s like to actually operate on this franchise. There’s are no substitute for face time when the people are above who’ve been there and done it before. One key question to ask franchisees, suggested by Joel Kramp: Would you do it all over again?
4. Typically, both the franchisor and the franchisee will undergo an interview process. This could be take the form of conference calls, visits to their headquarters, and sit-down meetings. It will be very depending upon on which franchisor you choose, but the goal will be for both you can be the franchisor to go over the nitty gritty specifics and determine if the franchise is right for you. Take note of things which you can like how much support the franchisors offer
Sign the franchise agreement, and make your investment. There is an upfront fee paid to the franchisor, and usually additional investment expenses such as kitchen or cleaning equipment. This is where it all begins.
6. If all is going well, renew your franchise agreement when it ends to continue your business ownership. Typically, these agreements are five to 10 years long.