To start a franchise, first submit an initial application to a franchisor to express interest before researching and progressing to meeting them in person. Choosing a potential site for the franchise usually follows the meeting before a franchise agreement is made, notes The Franchise Doctor. The final step is then to attend training as directed and prepare for the opening.
To start a franchise, follow the steps below.
- Make contact with franchisors
- Meet with preferred franchisor
- Choose a site
- Finalize the agreement and prepare for opening
Consider personal expectations from the franchise, including what kind of hours would be desirable. Also take into account financing considerations, such as personal budget and sources of additional funding. Considering which industries are economically most suitable for a given area is also wise, states Entrepreneur magazine. Then begin researching specific franchise companies.
Make initial contact with preferred franchisors by sending an application or qualification sheet. This will allow them to evaluate whether a business relationship is viable. If so, they will send disclosure documents. Review these to better understand each franchise offer.
Ideally after formulating some questions to ask, perhaps by talking with existing franchisees, meet with the franchisor to discuss their offer. This is an opportunity for both parties to properly evaluate the viability of a business relationship. It is particularly wise to ask about franchises that have failed.
If applicable, consider local demographics when selecting a potential site for the franchise, then submit selections for review by the franchisor.
Sign the franchise license. This must be at least 2 weeks after receiving the disclosure documents from the franchisor. If applicable, attend appropriate training to impart to hired staff, and finally open the franchise.