1. Undertake a self-assessment
You need to consider whether you are the type to run a franchise. For example are you –
- Happy and confident selling?
- Do you enjoy meeting new people and building relationships?
Does your lifestyle meet the demands required of running a franchise business? Be honest and consider what commitments you will still have to meet. Whilst running a franchise is highly rewarding, both personally and financially, it does take a lot of time and the hours can be long.
Also consider your investment capital.
- Do you have enough money?
- Would you need to borrow from the bank or any other funding source?
2. Identify suitable franchises
You need to identify what franchises will suit you. Once you’ve shortlisted those franchises that appeal, and appear to match your skills and requirements, you need to research, research, research. Make quite certain that you have the information you need to progress.
Things to do:
- Visit franchise exhibitions
- Read online franchise directories
- Talk to your friends and family
- Do research on the internet
3. Evaluate your franchise shortlist
Once you have identified the potential franchises that interest you the most, then you need to start narrowing down that list by evaluating the individual franchises on a more detailed level. For example you can –
- Visit the franchisors at their head office (this is essential in our view)
- Meet existing franchisees, ask questions and don’t be scared to really probe for the truth
- Research the potential market size for your territory
- Identify what support you can expect at the start and just as importantly, once you have set up the franchise
- Find out if there are any hidden costs to the franchise set up
4. Plan, fund, check and sign
Now it gets really serious. Becoming a fully fledged franchisee and business owner is now very close but first you need to –
- Write your business plan
- Get legal advice (protect yourself)
- Secure the required funding
- Check and review the franchise agreement
Once you are happy everything is in place and as it should be, then you sign your documents, pay your fees and get on with running your new franchise.
Good luck – and remember, your franchisor and their network of franchisees are there to help.