How do I start a franchise business? If you want to run your own business without the risk of creating your own start-up, you should learn how to start a franchise business. When you start a franchise you buy the right to use the name of a parent company. There are literally hundreds of successful franchise business to choose from.
Franchise opportunities are all around us today. A franchising business is vastly becoming a trend in the business world today and this is why starting a franchise business is more beneficial than starting your own business.
The investment required in owning a franchise business is lesser than the capital required to start your own business; franchisors often give you financial aid for advertising and marketing, and you get invaluable training from them which goes a long way in making a success out of your venture.
Here are possible steps on how to start a franchise business of your choice anywhere in the world and become a successful business person.
STEPS TO STARTING A FRANCHISING BUSINESS
Research about the Franchise
The first thing you must do before starting a franchise business is to first check the reputation of the franchising business you wish to have as well as check their pricing and other relevant information about the products and services. You need to ask questions from customers of the franchising business if they are satisfied with the products and services as well as their return rate to that business.
You can check online to read reviews written about the franchise business and franchise tax in your locality so you can be sure of your decision. Reach out to other franchisees and get first hand details from them. This is even one of the best way to get the necessary information that you need.
One of the best question to ask franchisees is, “Would you do it again if you were thinking of starting a franchise?”
Organize your Priority
I know that you will be looking at 3 to 4 franchise to choose from. It is important that you know what kind of business you would like to run. Understand the work environment you work best in and what type of business best fits your lifestyle. For example, a restaurant might be a great franchise for you if you like customer service.
Know your Budget
Before contacting the franchise company to request for the application form and more enquiries, you need to know your budget for the investment. There is always an upfront franchise fee to be paid and most franchisors have financial requirement before anyone can become their franchisee.
First consider your personal finance and asset so you can pick a franchising company that your pocket can carry. Though, most franchisors do offer financial support that covers expenses like franchise fee, startup cost and other inventories.
Know and Comprehend the Contents of the Contract
The franchise contract is the agreement signed by both the franchisor and franchisee in the terms of running the business. These are where you put in writing all the agreed concepts in the franchising business.
So, if you were a franchisee you must certainly read and understand first what are the rules stipulated in the contract. Know if it is for your benefit. When you fully understand the stipulations in the contract you can ask the franchisor some amendments if it is not in your benefit.
You can also hire a legal team to check on the contract but if you have read and understand it you can make sure that your legal team will not twist your arms in legal fees.
Get an Attorney
You should get an attorney that is familiar with franchising law and contracts who will help you limit your liability. This lawyer must be a member of the ABA forum of franchising. Getting an attorney will help you to look at the terms and conditions thoroughly so you understand what you are getting into.
Sign the Franchise Agreement Form and Make your Investment
Joining a franchise business involves you requesting and signing the agreement form of the franchisor. The agreement from outlines your responsibility as a franchisee and the franchisor responsibility in helping you reach success in your business.
It layout the upfront franchise fee, additional renewal fee, royalty and advertising fees. It also contains the terms and conditions to be followed to remain a franchisee of the company.
Renew your Franchise Agreement
If all go well and you are enjoying the business with hope for a greater future, then you don’t mind renewing your franchise agreement. Typically, most franchise agreement are 3 to 5 years long or more.
LIST OF PROFITABLE FRANCHISE OPPORTUNITIES TO START
Franchises for Women
Franchises for Veterans
Special Financing Offers
SBA Approved Franchises
Note: Do not quit your job before you are certain that your business will turn out to be profitable. If you cannot handle both your franchise business and your job at the same time, make sure that you have enough savings to last you for a few years. Once you know the statistics and the market, no one can stop you from starting and succeeding at your franchise business.