Becoming a franchisee is a little like getting into a good college: You have to prove that admitting you into the brand family will benefit the company and that you will be an asset to not only its financial operations but its good reputation. A good franchise business plan demonstrates that you have an understanding of the corporate culture the franchiser has worked so hard to create.
When deciding what kind of business you want to run, you might end up choosing to buy a franchise. There are many franchise opportunities to choose from and a lot of decisions to make. Many business owners turn to franchises because they believe the process will be easy and more step-by-step than starting from scratch, but it still involves a lot of work. This is a very important decision, and you need to carefully consider each step.
How to Start a Franchise
Franchises are attractive because the company is typically already established and branded. You pay franchise fees, sometimes advertising fees, and a range of other costs, but you are part of a recognized entity. In some cases, instead of opening a new franchise location, you may get a franchise opportunity previously established by an owner who is now retiring.
Owning a franchise can be great, but there’s a lot involved. Don’t get caught off guard, make sure you know what fees you will be paying and that you can handle them. Here are a few traditional sources that you should not overlook Tips for Starting a Franchise Business.
Tips for Starting a Franchise Business
Find a franchise consultant that knows your business. You can look up franchise consultants near you but that doesn’t mean they know what you want. Don’t be afraid to look outside your area to find a consultant who has the expertise that you need and will help guide you through the process of starting a franchise.
Before you start your franchise, go to the bank to get some financial advice. Beginning a franchise can be costly and you will need to be secure in your financial position after you start your new business. Talk to your favorite local bank for some expert advice. You should make sure you always know what you are getting yourself into before you start your own franchise. It’s challenging, but not impossible, and it’s important to know the resources that are available to you.
You’ll be surprised how much your friends know about running a business. It doesn’t matter if they have started their own business before, their opinions can be very valuable because a lot of business is common sense. You can also cultivate relationships with people in the franchise industry. Ask them for their personal advice and see where that gets you. Franchise associations have all of the resources you need and are another great way to make friends and develop contacts with people who already own franchises.
How to Find the Right Franchise
There are a lot of folks out there that will tell you how to start a franchise and even how to run one. But the real question is, how do I find the right franchise for me? Too much information is one of the major problems when trying to sort things out. There is as much good advice as bad and dependable resources for those looking to open a new franchise seem to be pretty well hidden.
How to Choose a Franchise Location
After you’ve decided that you’re sure you want to purchase a franchise, you’ll need to choose which one. There are approximately 3,000 different franchises to choose from in the United States. It’s important to pick one that you think you’ll enjoy. Carefully consider your options and the buy-in price required. Compose a list of your top picks and compare and contrast each one to help you decide.
What is a Franchise Disclosure Document
Once you decide on a franchise or your top picks, you need to ask the company to send you a franchise disclosure document (FDD). This will have all the important numbers and information you need to get to know the business you might be running. An FDD also lets you know what your obligations will be. Getting this information will help you prepare and decide on a franchise.
Although the FDD will be full of important information, it is still vital to do your own research. Find out what other owners have to say and what their customers think. Look up their ratings and reviews. Doing your own research and obtaining the FDD will give you a more complete picture of the franchise you’re considering.
Requirements to Start a Franchise
Like any business, buying and running a franchise will have ups and downs. Be sure that you crunch the numbers and know the business that you’re about to become a part of. Consider consulting with trusted business professionals and perhaps an attorney. There is a guide to buying a franchise offered by the Federal Trade Commission that can also be helpful to you.
Wise offers business planning created especially for assisting those looking to successfully run a franchise. Read more about our franchise plans here.
Top Business Franchises
Franchising has always been a safe way for entrepreneurs to pursue their small business dreams. At no time has this become more evident than in recent years. As the recession continues to recede a variety of franchise opportunities have been made available including restaurants, painting and décor, insurance and real estate agencies as well as travel-oriented franchises.
Sandwich & Sub Store Franchises
Cruise & Travel Agency Franchises
Real Estate Agency Franchises
Painting & Decorating Franchises
Auto Glass Repair & Replacement Franchises
Electrician Service Franchises
Handyman Service Franchises
Per Service Franchises
HVAC Service Franchises
Plumbing Service Franchises
Children’s Fitness Center Franchises
In-Home Senior Care Franchises
Home Inspection Franchises
Tanning Salon Franchises
Day Spa & Nail Salon Franchises
Truck Repair Franchises