What are some common steps to starting a franchise?


Quick Answer

Self-evaluation, research, attending a discovery day, speaking to other franchisees and finding a suitable location are some of the common steps to starting a franchise. Other steps include choosing a franchise and securing funding, signing the agreement, obtaining the necessary permits and insurance and hiring staff and opening the business.

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Full Answer

Those who intend to start a franchise should ask themselves what appeals to them about opening the business. They should also ask themselves whether they can work long hours and commit to different business methods that have little variation. They also need to consider whether they have a genuine interest in that particular field of business.

Attending a discovery day is the next step. This is a meeting between the franchisor and other potential franchisees. Those in attendance can see the support that the franchisor can offer. To successfully start a franchise, an individual must speak to other franchisees and find out whether they are happy with the support provided by the franchisor.

Finding a suitable location is important. The individual should choose a location where he can easily get customers. Some franchisors help in selecting a suitable location. Securing funding is the next step. Financing options include small business administration loans and bank loans among others.

Before starting the franchise, the individual must sign an agreement. Some franchisors can negotiate the agreement terms while others are rigid. Obtaining the necessary insurance and permits is the next step. Every industry has its requirements for both insurance and permits. Finally, a franchise owner needs to hire staff before opening the business.

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