Below are ten steps providing a general summary of the different stages involved on the path to becoming a franchise owner:
- Learn more about franchising by researching and getting familiar with franchising as a way of doing business
- Figure out what your own financial situation and objectives are to conclude if franchise ownership is a feasible route for you
- Consider your motivations, lifestyle preferences, personality, family obligations, health and likes and dislikes and ensure you’re being realistic about taking on a particular type of business
- Look for franchises that match your requirements and preferences, and then compare several similar opportunities to narrow down your choices. Talk with other franchisees to get a hands-on practical viewpoint on the pros and cons of the business
- Set up a business relationship with an accountant to assess your finances, and a solicitor to review the legal obligations involved in franchising
- Contact the franchisor and request comprehensive information about the franchise. Then carefully go through this with your accountant and solicitor to assess the business proposition and its financial potential
- Identify a suitable location based on your target market, the competition and capability to meet any site requirements
- Do the research on the industry, the market segment and competition in your specific area
- Write a plausible business plan to present to the franchisor and potential financial lenders
- Carefully examine the Franchise Agreement with your accountant and solicitor to ensure it corresponds with the original information you received. Check that you understand all the terms, and see if any of the terms can be changed and made more favourable for you as the franchisee.