8 Steps of Buying a Franchise

1. 8 Steps of Buying a Franchise There is a saying that in business, there are no shortcuts. Purchasing a franchise is the smartest way of owing a business in today’s world. Like running a franchise, buying a franchisecan be straight forward with hard work. If buying a franchise is on your mind, you should probably start by learning about the purchase process. Step 1- Research Always start from up top, and do not underestimate the benefit of research. Research not only finds you the best options out there, but it also brings you face to face with the potential competition. You will be surprised by the things thorough research can dig up. Everything about net worth, credit score, cash on hand, management and industry experience, and other qualifying points can be raked up at this stage. The information collected through research is the cornerstone of starting a successful franchisee. You need to be armed with as much intelligence as possible before you step into the arena. You will see how much the information learned in the starting helps you get through the process. Step 2- Contact Companies Once you have spotted a good franchise opportunity, the next obvious thing to do of course is start making contact with the franchisor. Always have more than one choice in mind. Fill out the FDD or Franchise Disclose Document of all the chosen companies and send them out. After you heard from them, make your pick. Step 3- Attend the Discovery Day Next is to meet the management team of your chosen franchisor. The introduction is usually conducted on the Discovery Day at their head office. This is your chance to get to know your franchisor better. Ask away any question you have and do not leave until you are satisfied by the answers. Step 4- Review Your Agreement Need I say that this is the second most crucial step of the transaction? The success or failure of your venture balances on this step. Read the whole document, understand your legal rights, their terms and conditions, the rules and regulations and everything else before you agree with the clauses.

2. Step 5- Find a Financer After you have shortlisted the best franchises to buy, start looking for a good financer. This may take a while and unless you are willing to stall the process in the middle, you’d want to get it over with in the early stages. Step 6- Pick a Location Lease or buy as your pocket permits, but a good location is vital. Leasing can be quite cost-saving and less risky. Step 7- Trainings and Workshops Take training that is offered and attend workshops in preparation for the venture. Step 8- Inauguration Lastly, put together a marketing budget and plan the opening. About The Company Business Franchise Magazine is a bi-monthly publication which offers the latest news, expert advice, and franchise information from across Australia and New Zealand.