To join a franchise is an important business and life decision. Joining a franchise is a form of a career change, as the franchise will become the franchisee’s main focus and occupation. Most franchises have an application process that the franchisee will have to start to join the franchise. Here are some of the steps to take when you want to join a franchise.
- Make contact
Owning your own franchise will remain a dream until you make the bold step of contacting the franchisor. Sites such as Franchiseek South Africa makes it easy to research various franchise opportunities and submit your request for information to the franchise.
- Find out what the application process entails
The franchisor will have an application process in place, often involving the submission of an application form containing your personal and financial information. Find out what the franchisor’s requirements are and ask for a copy of the application form
- Compile a balance sheet
The franchisor and the bank will most likely request a balance sheet from the franchisee. This helps them to determine whether the franchisee has the required assets and funds to support the franchise opportunity. If you don’t have a balance sheet, make a list of your assets (property and other things you own) and your liabilities (any debts or outstanding finance on your assets). If you would like to learn more about the different funding options that come with buying a franchise, check out our recent article about how to get funding for a franchise.
- Start collecting copies of important documents, including proof of available funds to invest
Applying for the franchise and bank finance require the franchisee to collect and submit important documentation such as proof of ownership of assets, proof of identity and physical address, company details (if applicable) and proof of funds to invest in the franchise. Ask your bank for a list of information required to process a franchise finance application and start compiling this information for submission.
- Consider the area where you would like to open the franchise
The franchisor may not have opportunities available close to your residence, so consider the areas available and whether you are willing to commit to travel time and other requirements for the areas available.
- Submit your application to the franchisor
Once you have considered all options and obtained the necessary information, submit your application to the franchisor. If your application is shortlisted, you will most likely be invited to an interview.
- Submit a finance application to your bank of choice
If the interview with the franchisor is successful, you can proceed with a bank finance application if applicable. The bank will require a letter from the franchisor stating that the franchisee has been approved provisionally pending the securing of the required finance. Make sure that your finance application is as complete as possible to expedite the finance application process.
While it sounds fairly simple to join a franchise, the process may be time consuming. Therefore it makes sense to apply as soon as possible. If you would like to learn more about franchising, feel free to check out our resource of franchising news at Franchiseek South Africa, allowing you to read the latest franchising news in South Africa.