A franchise is a great way to build your own business, without actually having to start that business from scratch. While it still requires quite a bit of time, money, and energy, your chances of success are much higher, especially if you work with one of the popular franchisors. If you are interested in learning how to start a franchise, here’s what you need to know.
Pick Which Franchise Opportunity You Want to Start
When it comes times to start a franchise, you have a huge variety of opportunities to choose from. Unless you area already has the most popular fast food restaurants, for example, this might be the perfect opportunity to start a lucrative business that the people in your area have been itching for. You might already have a franchisor in mind, especially if you prefer a certain restaurant or brand, have experience with a particular brand, or think that a particular brand would perform well in the area where you want to start a franchise.
It is important to consider whether or not the consumers in your area would actually take advantage of the franchise you are thinking about starting. For example, if you are thinking about opening a burger franchise on the same block as four other burger franchises, will people be willing to come to yours, over the four others that are already open? In big cities or on well-trafficked parts of the highway, more than one fast food joint can survive, but in very small towns, however, you might not want two very similar (or even identical) franchises.
When you contact the brand that you want to work with, talk to them about where you are thinking about opening the franchise. Many of them have advisors and consulting services that will help you make sure you are making the right decisions for your skill set and for your area. If you are not already sue of which franchise you want to open, it might be worth your time to contact more than one brand to see which ones are the most compatible with you and your goals.
Find the Location
In small towns, there are probably only a few locations that makes sense and even fewer locations that are actually available. In larger areas that are more densely populated, you might have a huge variety of locations available to you. The perfect location is one that gets lots of foot traffic, no matter what the brand you choose is actually selling. Because many franchises are restaurants, it is worth your time to take a look at what other businesses surround yours. If there is a lot of shopping or many offices in the area, a restaurant can be a huge draw for people in the area, even if there are other dining options on the same block.
The company that you’ve chosen to work with may provide you with some requirements for the space. It might need to be a certain size, be in a certain zoning area, or be near certain other amenities. For example, they might not want you to put the franchise at the end of a dirt road on land that has not yet been developed.
Talk to Current Franchisees
This might seem like an erroneous step, but if you want to learn what it takes to be successful, you should spend a little time talking to people that already have successful franchises, both from the same brand that you want to work with and from other brands in the area. The brands generally talk about only the benefits of becoming a franchisee and do not spend very much time actually talking about how difficult it is or what steps you need to take to be successful, until you have already bought in.
Talking to someone who already owns a franchise is a great way to see what your day to day is going to be like, what kind of time and energy you are going to need to put in, and what your profits might look like a year, five years, and a decade down the road.
Talk to a Lawyer
Before agreeing to anything, you might want to have a lawyer look over the agreement and tell you whether or not the fees and requirement seem fair. If they do, it’s time to get started. If not, you can either negotiate with the brand or you can look for a different brand that has more amiable terms. Don’t be afraid to ask questions. You shouldn’t have to wonder what anything means and you shouldn’t sign an agreement that you don’t fully understand.
Submit Your Franchise Application
Most brands make it very easy to fill out and submit an application to open a franchise. Whether you want to open a Hamburger franchise store or a BBQ franchise, it’s extremely easy to apply for that franchise and to get almost immediately approval or a request for more information. Before or after this process, you might be called by a franchisee representative of that brand, who will want to discuss why you want to open a franchise with their brand and whether or not you have what it takes to be successful. They will likely want to talk about your training, your background, your education, and your experience with the brand. Be ready to explain and to convince them that you are a good candidate for opening a franchise for their brand.
Interested in Becoming a Franchisee?
Interested in becoming a Franchisee but not sure where to start? Contact MBB Management for a consultation. We’ll help answer any questions you have and provide suggestions for the franchise opportunity that’s exactly right for you.
Call 856-359-4445 or send us a quick message.