Starting a franchise is no simple task. From the customers to the brand, maintaining a franchise is about consistency, communication, and upkeep. But with soaring business rates, potential franchise opportunities have never been higher.
Begin your franchise on the right foot. By taking the proper first steps, you can ensure that you’re starting down the right path.
This article aims to show any potential franchisee the best practices in getting started, from looking for options to signing off on a final deal.
How Does a Franchise Work?
Our Ultimate Guide puts it best. Franchising is “acquiring a licence to provide particular products or services using the franchisor’s branding, knowledge, and processes.” In the process, a franchisee gains the rights from a franchisor to use its brand and intellectual property.
Think of franchising as a chain. When the founders created McDonald’s, the brand’s first link snapped into place. When the next store came along, a second link locked into the first. Every time a franchisor aligns with a franchisee, a new connection adds to the chain. One link shouldn’t disrupt or break the flow but add to it and pave the way for the rest.
Is Franchising Worth It?
With franchise fees and agreements, franchising can seem tricky.
Maintaining a franchise provides benefits that traditional businesses don’t. With an established franchise, you don’t have to make up a brand from scratch. A successful franchise will have a consistent business plan, and moving to a new location will only require adapting what’s already in place. Other franchise opportunities include the following.
- A great way to venture into a new industry
- A support net with less of a business risk
- Operational support
- Being your boss
- A built-in customer base
Long story short: You don’t have to invent the wheel whenever you set up shop. By creating a franchise, you’re putting your tent poles in the ground and planning on staying.
How to Set Up a Franchise
If you believe in the benefits of franchising, it’s time to get to business. Follow our steps below to get your franchising head-start.
#1 Find the Right Franchise For You
Don’t jump in too fast. Before making your first purchase, it’s critical to research what will be the best franchise for you. From Automotive to Vending Machines, and with a wide range of budget types, our site has a wide selection of franchises, optimal for anyone.
There’s no point in getting in with a company you disagree with. Ensure that your potential franchise aligns with your values and long-term aspirations. Make sure that the franchises are growing and have an eager customer base. One well-run chain link won’t make up for a dying brand.
Consider Your Location
A franchise location is one of the most critical and underappreciated factors in determining your franchise. In reality, your placement will often determine much of your success. Consider the different factors, from needs and wants in your area to traffic and regional rulings, that may influence your franchise.
Attend a Franchise’s Discovery Day
Many franchises offer a Discovery Day, designed to answer any question you may have about their franchise. Use these as an opportunity to weed out franchises not meant for you. Ask about budget, values, training, and business ideas.
Talking face-to-face with a franchise leader or owner will help you learn about a business. As always, follow your gut.
#2 Connect With Your Franchisor
Once you’ve found a brand you connect with, it’s time to buy a franchise. To get the transaction in motion, you’ll have to meet with a franchisor. As mentioned above, a franchisor is an individual who sells intellectual property and brand to a franchisee.
This franchisor will be essential in developing your brand from training to long-term support. Ensure you feel comfortable with your franchisor: they will be a leader throughout your business.
Meet with your franchisor to discuss business steps to securing your business.
#3 Study Your Franchise Agreement
Upon meeting, a franchisor will typically offer you a franchise agreement, which will underline all the costs and benefits associated with your purchase.
The franchise agreement is a critical step: as soon as you’ve signed, you’re undertaking the business. Use this as a last chance to learn all you need about the company.
Connect with a Lawyer
Don’t rely on yourself. Lawyers and accountants will study your franchise agreement and alert you to pitfalls. Even if your franchise agreement is well and good, there’s no harm in getting a second opinion. They will likely offer you legal advice to help you on your franchising path.
When you and your lawyer feel that a franchise is within your budget range, aligns with your values and ethics, and has a positive business trajectory – then it’s time to sign.
#4 Start Your Business Right
Congratulations – you’ve signed off on your franchise, but there are still a few necessary steps before you open for business.
Ensure that you have attained all your proper insurance and permits. These necessities will likely vary in your region. Though your franchisor should handle these permits, staying in the know is a good idea.
From there, the franchisor will often provide training on hiring and management. Follow the franchise’s business model and operations to ensure that you stay within their brand. When hiring, choose workers you trust, both reliable and reputable. Every employee is a representation of the brand.
#5 Congratulations! You’re Open For Business
While it can seem like a long road – the pay-off will come. Opening for business is a thrilling endeavour and will test your learning and preparation. Remember: no company will ever run perfectly on the first go. There will be fissures in the tightest of plans.
If you stay open and ready for changes, you can maintain your business steadily. The best franchises adjust based on the needs of their clientele and the weaknesses of their business while still falling under the franchise’s brand. Franchising is a growing process and will likely challenge you in unexpected ways. Embrace it.
Build Your Franchise with Franchise Local
You’re on the right track. Before starting a franchise business, it’s essential to read all you can. Advanced industry knowledge will put you on the right foot to success.
But sooner or later, you’ll have to dive in. No amount of articles or guides can help you as much as tried and true business experience.
So before you make that final leap, continue researching at Franchise Local. Whether you’re looking to invest in a franchise or even peruse, we have it all for you. Are you looking to make a small splash? Explore our budget franchises – all under 10,000 pounds.
For a wealth of information, visit our Ultimate Guide to Franchising. This page is a wealth of knowledge and will give you all you need to know to start your franchise today.
Franchising can be intimidating, but there are ways to mediate the process: moving slowly and steadily so you can feel comfortable and graceful when you finally hit the ground.