You want to be in business for yourself, and you\u2019re exploring owning a franchise business. Then you\u2019ve obviously answered the \u201cwhy,\u201d e.g., to rescue you from corporate America, to leave a legacy for the next generation, to scratch an itch, but now you\u2019re on to the \u201chow\u201d: What\u2019s the process to get to Grand Opening?<\/p>\n
Our guess is you\u2019ve probed the web for information and answers. That\u2019s why you\u2019re here. Welcome. If you\u2019ve searched using key words anywhere near, \u201cHow to launch a franchise,\u201d you were no doubt\u2014as we were\u2014overwhelmed by the many links to the steps to be your own boss.<\/p>\n
What you\u2019ve learned is instructive, beneficial and all good. Our goal is to boil down the steps and to share hindsight and insights to bolster your decisions, confidence and enthusiasm so that you can comfortably settle into the franchise business of your choice.<\/p>\n
\u2022 Research<\/strong>\u2014Become an expert on the franchise industry, investigate business opportunities, and know your market. Make a list of concepts\/brands that interest you. Engage a free-to-you franchise consultant or contact the franchisor (\u201czor\u201d) directly.<\/p>\n – Sure everyone has to eat, but the restaurant business is no piece of cake. Just because you consider yourself a handyman, doesn\u2019t signal you can nail operating a home-services business. Be open to whatever is out there that builds off your skill set. Don\u2019t worry about \u201cno experience.\u201d Franchisors prefer those who want to benefit from the systems and procedures they have in place and are acceptable to learning.<\/p>\n -The most frightening prospects for zors are people who style themselves as \u201centrepreneurs.\u201d The zor wants you to embrace their culture, be a team player, and follow their system\u2014work within the system and the system will work for you.<\/p>\n -Still, Kevin Cushing<\/a>, President of the Marketing & Print Division<\/a> for Alliance Franchise Brands<\/a> says: \u201cTypically you\u2019ll find that some franchise networks have such a rigid operating system and a go-to market strategy that the owners aren\u2019t allowed to put any of their personality into the business. We allow that in abundance.\u201d<\/p>\n -On your initial call with a consultant or with the zor, do not ask, \u201cHow much money can I make?\u201d The FTC won\u2019t let them tell you. Save the question for your franchisee calls. Besides, the answer has a lot to do with the effort you pour into the business. Your first question should be, \u201cHow do I get the phone to ring or the door to swing?\u201d<\/p>\n -In your search, give franchises that have company stores extra stars. Company stores allow the zor to assess new products, operating procedures, and marketing campaigns. You don\u2019t want to be the tester.<\/p>\n -Also, dole out stars to franchises where the executive team has done what you\u2019re about to do. \u201cI believe that we have a rare understanding and empathy for our franchise owners because our ownership and leadership group were owners of marketing, print and mail businesses as well,\u201d says Kevin.<\/p>\n -The support you\u2019ll need the most will come from your family. Make sure that significant others are welcomed in the sales process and training, and are just as committed as you to make a go of the business.<\/p>\n -During the sales process, the accessibility, responsiveness and openness from the corporate office of the franchise, will be indicative of what you can expect once you become a franchisee.<\/p>\n \u2022 Franchise Disclosure Document (FDD)<\/strong>\u2014To protect you, the FTC requires franchisors to provide you upfront with a lengthy, formatted document that addresses 23 \u201citems\u201d from legal history, fees, your obligations as a franchisee, assistance from the franchisor, to financial performance presentations, a list of franchisees, and audited financial statements.<\/p>\n -The financial performance presentations, commonly referred to as \u201cearnings claims,\u201d are listed under Item 19. Zors are not required to include composite earnings from their franchisees. That begs the question, \u201cWhy don\u2019t you include an earnings claim?\u201d Additionally, there\u2019s no standard for presenting the numbers. A clue to a zor\u2019s veracity is how the numbers are rendered. Make sure to read the details within the note\u2019s sections. That may add to a deeper understanding of what is being presented.<\/p>\n -When you\u2019re reviewing the FDD, an established and reputable zor will encourage you to seek watchful eyes and advice from your lawyer and your accountant. Add a \u201cgood listener\u201d to your team\u2014someone who has no agenda or vested interest in the outcome, who from time to time can help you talk it out.<\/p>\n -Don\u2019t let royalties rattle you. There\u2019s a tangible return on investment in training and ongoing support. And royalties make for a stronger franchisor and support system.<\/p>\n \u2022 Franchisee Calls<\/strong>\u2014Reaching out to franchisees to find out how the operating system works in practice and how much money you can potentially make.<\/p>\n -Here\u2019s when you ask, \u201cHow much money can I make?\u201d However, the answer has a lot to do with the effort that the business owner pours into the business.<\/p>\n -Use the time and opportunity to connect with successful owners, but also franchisees who are struggling, with managers, employees, and even customers (online reviews). A call can include face-to-face meetings with franchisees and tours of facilities.<\/p>\n -Get a feel for the relationship between the zor and franchisees. Success is a team effort.<\/p>\n \u2022 Discovery Day<\/strong>\u2014A day, maybe a day and a half, to meet the home-office \u201cteam.\u201d Do they pass the sniff test? Immerse yourself in the culture, ask questions of the people you\u2019ll be relying on, and decide if the operation is as legit as they say.<\/p>\n -Look for gray hair and grit under the fingernails.<\/p>\n -You\u2019ll be able to tell if the zor is rushing to make a sale, or if their priority is a perfect match. Be prepared to walk away.<\/p>\n -Also, be prepared to tell them what you bring to the table, and how that advances their system.<\/p>\n \u2022 Franchise Agreement<\/strong>\u2014The rules of the road written by lawyers. It outlines the terms and conditions of the deal and obligations of you and the zor.<\/p>\n -Make sure what you\u2019ve heard and have been promised in the sales process is backed up in the contract.<\/p>\n \u2022 Funding<\/strong>\u2014Here the franchisor should be helpful in directing you to financing options and sources. Know what your options are and consider knowledge of funding before you start any journey.<\/p>\n -Be realistic about your finances. Don\u2019t purchase a franchise on a shoestring. Be prepared for a ramp-up period, fortunate opportunities, and unexpected challenges.<\/p>\n \u2022 Location<\/strong>\u2014If your franchise is other than home-based, you\u2019ll be looking for space. Here again, the franchisor should provide assistance with \u201csite selection.\u201d<\/p>\n -In real estate it is location, location, location. The same may apply to your franchise business. If you are considering a resale or conversion opportunity this may not apply.<\/p>\n \u2022 Training<\/strong>\u2014The difference between launching a business off a cocktail napkin and fundamental to a franchisee\u2019s potential success is comprehensive pre-opening training, ongoing training, and experienced support, when and if you need it.<\/p>\n -Make sure an \u201celevator pitch\u201d is on the training agenda. When people ask, \u201cWhat do you do?\u201d you\u2019ll need a short (30 seconds), snappy explanation that could be the difference between a prospect or referral, and a missed opportunity.<\/p>\n – From the get-go build a business plan that includes an exit strategy. Know where you want to go. You\u2019ll make the journey more rewarding, and you\u2019ll be better positioned to exit the business when you\u2019re ready and on your terms.<\/p>\n \u2022 Grand Opening<\/strong>\u2014Turn-key guidance and boots on the ground from the home-office team to set you on your way.<\/p>\n -If you\u2019re going to involve family in the business, clearly define roles and responsibilities\u2014how you\u2019ll divide and conquer. Franchising is about a work-life balance. Make sure you can separate the two.<\/p>\n -Franchisors will talk up passion as a sure-fire emotion to achieve success. Pride is a word you may not hear, but pride in your business, your people, and what you\u2019re doing might be a more important attribute. The test will be will you wear a polo shirt with the brand logo to the Chamber meeting, the grocery store, and your kid\u2019s lacrosse game?<\/p>\n","protected":false},"excerpt":{"rendered":" You want to be in business for yourself, and you\u2019re exploring owning a franchise business. Then you\u2019ve obviously answered the \u201cwhy,\u201d e.g., to rescue you from corporate America, to leave a legacy for the next generation, to scratch an itch, but now you\u2019re on to the \u201chow\u201d: What\u2019s the process to get to Grand Opening?…<\/p>\n","protected":false},"author":2,"featured_media":4637,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[27,16],"tags":[],"class_list":["post-4276","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-franchise-how-to","category-starting-a-business"],"_links":{"self":[{"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/posts\/4276","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/comments?post=4276"}],"version-history":[{"count":0,"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/posts\/4276\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/media\/4637"}],"wp:attachment":[{"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/media?parent=4276"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/categories?post=4276"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.allegramarketingprint.com\/franchise\/wp-json\/wp\/v2\/tags?post=4276"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}