{"id":2229,"date":"2013-03-15T11:47:48","date_gmt":"2013-03-15T11:47:48","guid":{"rendered":"http:\/\/www.franchisemart.in\/franchise\/?p=2229"},"modified":"2013-04-12T13:15:34","modified_gmt":"2013-04-12T13:15:34","slug":"easy-steps-to-franchise","status":"publish","type":"post","link":"https:\/\/www.franchisemart.in\/franchise\/easy-steps-to-franchise\/","title":{"rendered":"Easy Steps to Franchise"},"content":{"rendered":"

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With thousands of franchise systems operating in dozens of industries, there is no shortage of choices for people interested in buying a franchise.At the same time, the numerous choices can make that decision a challenge for even the most determined would-be franchisee. By first defining what you want and then using that information to narrow the field, you can make your decision both manageable and more likely to succeed.<\/p>\n

As a general rule, you will want to avoid industries and fields that are either too crowded or too thinly populated. Crowding creates competition, while the absence of franchisees in a particular niche suggests that it either doesn\u2019t lend itself to franchising or that the market hasn\u2019t yet developed adequately. Lenders prefer to fund franchises in proven markets, so keep that in mind as well.<\/p>\n

Here are our recommendations for finding the one that suits you:<\/p>\n

Step 1: Take Stock of Yourself<\/strong><\/p>\n

Before you start looking at franchises, take stock of that most important component of the equation \u2013 you.<\/p>\n

What are your skills, experiences and interests?<\/p>\n

What did you like best and least about your past jobs? List them, then your own strengths and weaknesses in those jobs.<\/p>\n

How much money can you invest and how much would you like to make?<\/p>\n

Are you comfortable managing others or do you prefer to work alone?<\/p>\n

Where do you want to work? Are you willing to relocate?<\/p>\n

What hours are you willing to work while the business ramps up, and what lifestyle expectations do you have after it\u2019s established?<\/p>\n

How do you feel about selling and the sales process?<\/p>\n

By starting with a list of what you have to offer and what you need from a business, you can create a strategy and model for your research.<\/p>\n

Step 2: Research, and Keep an Open Mind<\/strong><\/p>\n

If you are inexperienced, you may think, \u201cWell, I love donuts. How about a donut franchise?\u201d And after spending days or weeks of research on Krispy Kreme, Dunkin\u2019 Donuts and others, you might find you do not have the required capital, the territory you want isn\u2019t available, and you would have to give up weekends to own a food franchise.<\/p>\n

And don\u2019t lock yourself into one or two concepts. If you think, \u201cI will only look at ice cream and exercise franchises,\u201d you could miss finding a gem that meshes perfectly with your needs. With thousands of franchise companies available, keeping an open mind is the best strategy to get in on the ground floor of that new, hot concept or to find something that will really take off in your market.<\/p>\n

Step 3: First Contact<\/strong><\/p>\n

Let us say you have found several promising franchises. What\u2019s next?<\/p>\n

Contact the franchisors and ask for information about their concepts. You\u2019ll probably get call from someone in their development department who will gauge your interest and tell you if the territory you want is available. Thoroughly review the franchisor\u2019s Web site and any brochures and videos they send you.<\/p>\n

Keep notes on your impressions. Are their materials professional and up-to-date? Are you treated courteously by friendly and knowledgeable staff? Are your questions and concerns answered to your satisfaction? What you see from the company at this time may be an indication of the type of support you\u2019d get as one of its franchisees.<\/p>\n

Step 4: Read the FDD<\/strong><\/p>\n

Every franchise should provide an FDD (Franchise Disclosure Document). Some franchisors also include earnings claims in the FDD. These will help you estimate your business potential.<\/p>\n

The FDD clearly explains the responsibilities of the franchise (you) and the franchisor. Reviewing and understanding it is a very significant part of your research.<\/p>\n

By paying attention to what you find in a company\u2019s FDD, you can weed out franchises that just don\u2019t measure up. Some warning signs are extensive litigation with franchisees or closing more outlets than opening new ones.<\/p>\n

Step 5: Talk with Existing Franchisees<\/strong><\/p>\n

Getting feedback from existing franchisees is one of the most important steps you can take to judge how happy you will be with a particular franchise. They are your best source of information about what really happens in the business day to day. Ask what they like and dislike, if they are happy with corporate support, and even get a feel for their earnings.<\/p>\n

Gather a variety of opinions and you will get a clear picture not only of the franchise itself but of how you would fit into the organization.<\/p>\n

Step 6: Narrow the Field<\/strong><\/p>\n

It may not be easy, but it\u2019s time to narrow down your choices. Let us review what you have done so far:<\/p>\n

Make a list of your strengths, experiences and needs.<\/p>\n

Researched with an open mind, and found some promising companies.<\/p>\n

Requested information.<\/p>\n

Talked with existing franchisees<\/p>\n

Hopefully you have now found one or more companies that fill your needs.<\/p>\n

Now it\u2019s time to go to Discovery Day \u2014 an on-site meeting with the franchisor(s) you\u2019ve chosen. There you will be introduced to the top people in the home office, and may visit a local franchisee, allowing you to ask even more questions and maybe get some hands-on experience with the business.<\/p>\n

Discovery days are very interesting and exciting. When you leave, you\u2019ll have a good understanding of the franchise. Do not forget they will also be evaluating you as thoroughly as you evaluate their business.<\/p>\n