So, you’re interested in franchising but you aren’t sure where to start? These 6 steps in the process of franchising might help you decide if franchising is for you, as well as providing a bit of insight into what’s involved.
Step 1: Know the product!
Whether you want your own Subway or a fitness gym, it’s important to really know your brand. Aside from customer feedback, the best place to start is with an interview with a sales rep from the franchise you are considering. This interview gives you more insight into the businesses history, and their vision for their company.
Step 2: FDD (Franchise Disclosure Document).
This is the part where money talks. The salesperson, or team, will cover this document in detail. This is the part of the process where you learn what can potentially be expected as far as the financial forecast of the franchise is involved.
Step 3: Your personalized business model.
This step is where the demographics and logistics for your franchise are discussed. What locations are available? Viable?
Step 4: Validation.
This is the real getting-to-know-you session. A franchise salesperson will naturally put the best of their company on display, but talking with existing and former franchisees will likely provide detailed information outside the scope of the sales pitch you were given by a company rep.
Step 5: Going home.
A visit to the franchises home office is in order at this stage of the process. This will provide you with the opportunity to meet and chat with the decision makers, ask questions that still linger or that just popped up, and it’s an opportunity to build business relationships.
Step 6: Decisions! Decisions!
It is decision-making time. Are you in or out? If you have decided to go forward with your franchise pursuits then it’s time to sign the agreement, workout the payment of franchising fees, and look forward with anxious anticipation to the big launch. Best wishes!