Working with a professional Franchise Consultant can help you find a franchise that is the best fit for you based on your background, business goals, lifestyle preferences, investment level and other important qualifiers. With over 6000 franchise brands in North America working with a professional will help you zero in the the best franchises.
By Inside Franchise Business | 26 Mar 2020View comments
It can at least three months to buy a franchise and there are some set steps you will need to take. This is the typical path that will take you to franchise ownership.
If social distancing is still in place when you engage with the franchisor, expect any meeting to be held virtually using Zoom or Skype or Google Hangouts.
1. Make an inquiry
Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.
2. The franchisor responds
If you have emailed an inquiry, typically a franchisor will send out an information pack to you, and follow this up with a phone call.
3. Confidentiality
The franchisor will ask you to sign a confidentiality agreement before sharing sensitive information with you.
Expect a copy of the disclosure document, draft franchise agreement and the Franchising Code of Conduct, plus an information statement.
Your franchisor might also send more commercially sensitive information to help you consider the viability of the franchise opportunity and build your business plan.
4. First meeting
This is the first time you will get a much clearer idea of the business, and the franchise team you will be working with.
5. Conduct due diligence
This is a crucial step so take your time and be thorough in your research. You will need to sign a document confirming that you have received independent advice or that you have decided not to seek independent advice.
Obtaining expert opinion from franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.
6. Prove yourself
You will need to create a business plan and show to the franchisor you have the capacity to take ownership of and drive the particular business unit.
A follow-up meeting will enable you to ask further questions following on from your due diligence, and for the franchisor to further quiz you.
7. Other steps
Some brands include a number of interviews, try-before-you-buy work experience, or a profiling assessment.
8. Don’t rush it
The process to get from inquiry to sign-up could be a matter of weeks or it could be months.
Buying a franchise is a significant long-term commitment. It is important not to rush the process.