Starting a business from scratch and building a brand can be intimidating for many. If you are looking for easy ways to start a business, you can buy a franchise. Franchising offers you an excellent opportunity to start a ready-made business as the brand is already established in the market. Here we have discussed how to purchase a franchise.
Most reputed brands offer franchising opportunities, and you have many options for buying a franchise. The first thing you need to do is perform market research and get information about franchise opportunities available at your location.
The objective of conducting research is to find a franchise opportunity that suits your budget, personal interest, and qualifications. The next step involves finding franchise requirements and ensuring you are eligible for the franchise offer.
Start the Application Process
Once you have decided to buy a franchise, you need to start the application process. You can seek the help of an attorney for the process. The franchisors will evaluate your application on the following points.
- They will check you enough funds to set up the business and keep the doors open during the initial period.
- They will check your educational background, reasoning to start the franchise, and work history.
- They will check the location where you want to open the franchise.
- They will check why you are interested in their franchise and what knowledge you have about their business.
The Franchisor will match you with one of their representatives who will study your application. You can expect to get the information within a week by mail or through a telephone call.
Finalize a Discover-Day Meeting
After your application is approved, the Franchisor will organize a discover-day meeting where you get to meet the representatives of the Franchisor in person. During this meeting, they will ask a series of questions to know your commitment to open their franchise at the desired location.
If you have any questions related to the franchise offer, the discover-day meeting is the right place to get your doubts cleared. You may be required to fill a questionnaire after the session.
Offer You Franchise Disclosure Document
After a successful meeting, the Franchisor representative will offer you a Franchise Disclosure document that contains essential information related to the Franchise business. You need to study the document carefully and ask any questions you have in mind before signing along the dotted line.
The Franchisor does not ask applicants to sign the documents immediately. Generally, you have a 14-days disclosure period during which no papers are signed. The disclosure period is an opportunity to study the document in detail and understand the franchise business model. At the end of the disclosure period, you are expected to make a well-informed decision to accept or reject the franchise offer.
Visit Existing Franchisees
To get information about their Franchise business model, the Franchisor can help you visit existing franchises and get more information. Visiting existing franchises is the best way to know the support the franchisee receives from the company. It also helps you visualize your life and activities as a franchise.
Apply for Financing
Once you have concluded to purchase a franchise, you need to get the required financing. There is no point in moving ahead if you do not have access to the funds required to set up a business. Apply for funding and wait for approval. Once you have the necessary funds to cover all expenses, you can approach the Franchisor.
Once you have the required financing, you need to meet the Franchisor to sign the deal. The Franchisor will prepare the necessary paperwork and give it to you for a final review. You need to study the franchise documents carefully and understand different terms and conditions before signing the document. It is always a good idea to hire an attorney to review the documents before signing the papers.
Rent or Buy the Location
Once the paperwork is completed, you can start building your business. The first thing you need to do is rent or buy the location you need to start the franchise. Since you have already chosen the site in the application, now you have to rent or buy the premises physically.
After the franchise is set up at the desired location, the Franchisor will provide the business training. The training is focused on the following elements.
- The training imparts knowledge about different products and services and different ways to sell them. It also gives you information about buying products.
- It focuses on the point of purchase displays and product placement.
- Focuses on sales tactics that are effective in product selling
- Payment technology
To sum up, these are essential steps in starting a franchise business.