Are you dreaming of opening your own franchise? Now is the time to make that dream a reality. We are sharing the steps and journey to open a franchise.
- Do your research
The first step towards opening a franchise is to research franchising and the various opportunities available. Websites such as Franchiseek provide many articles and much information on specific franchises to help you on your way.
- Choose a franchise that suits your interests and lifestyle
Once you understand franchising better, choose a category or sector that will suit your interests and lifestyle. Understand which skills you could hire and which skills you would have to apply to the franchise as a business owner. Most franchises are management-intensive, as you are likely to lead a team of people. Retail and fast food franchises are usually at their busiest on weekends, so consider your family situation if you are going for a franchise in those categories. Management or so-called “white collar” franchises often require experience in business or leadership roles to qualify as a franchisee. The franchises showcasing their opportunities on Franchiseek provide more information on the main activities of the franchise and what they are looking for in a franchisee.
- Work out how you will contribute the cash required
Most franchises will require a cash contribution of 50% of the total investment. As a potential franchisee, you must prove that you can access these funds. Work out how you will access these funds from sources such as savings and friends and family.
- Make contact with the franchise
Once you have decided on a franchise opportunity that excites you, the first step is to contact the franchise to express your interest. The franchises listed on Franchiseek can be contacted via the “Request Free Information” button on each franchise listing, and you may add more than one franchise to your basket of enquiries. Since many factors are involved in being selected as a franchisee for a brand, including the availability of appropriate sites, it also makes sense to apply to more than one franchise to find the best fit.
- Go through the franchisee vetting process
Franchises all have their own vetting procedures, which may include completing application forms, going through credit and other checks, and an interview with the management team or franchise manager. Be patient and complete the steps in the application process to ensure that you are considered as a potential franchisee.
- If successful, apply for finance
As mentioned, franchisees may apply for finance with commercial banks, and the financial requirements may stipulate a cash contribution of 50% and additional security requirements. Ask for guidance from the franchisor and the bank and ensure the application information is complete; this could save much time when going through the finance application process.
If you would like to learn more about how to get funding to open a franchise, we recommend you read our short guide to obtaining franchise funding.
Once you have completed the franchise and finance application process, you will be ready to open the doors to your franchise with assistance from the franchisor. This is when the hard work begins to sell products and services and win customers. The franchise journey can be challenging but also rewarding.
