With the close of 2017, it’s time to think about 2018
Now that the leaves are starting to change and the days are growing shorter, there is little doubt that autumn has arrived. There is a general feeling of something ending and something beginning anew. It is also the perfect time to reflect, regroup, and make a plan of attack for the end of year and beyond.
With this feeling of renewal, now is the time to get the ball rolling on starting your new business. As we look towards 2018, take a moment to stop and think about your career goals and aspirations. I invite you, while the feelings of change and renewal are still ripe, to get started on the search for your perfect franchise.
Here are some steps we’ll be going through to find your perfect franchise.
The Investigative Process
Once you’ve made the decision to start your own business, get ready to work. Finding the right franchise for you is a very important decision and one that should be thoroughly researched. The first step in the due diligence process is to begin whittling down your choices of franchises. Our chief concern is matching you with a business that hits on as many of the business attributes that are important to you as possible. But, we need to know what those criteria are. In order to do so, we begin by building a profile on you that help us narrow down our search and ultimately provide you with a number of matches that are best suited for you.
Investing in a franchise means contracts. For a franchise, typical contracts are usually good for around 10 years, so it is especially important that you love the partners you’ll be working with. That includes the franchisor and your fellow franchisees. During the investigative process, you’ll have the opportunity to get to know some of these people before you need to sign any sort of contract. You’ll also want to have a franchise attorney review the agreement for traps and/or red flags at the end prior to signing your agreement.
Finding your Franchise – Evaluating Franchisors
Once we’ve identified the criteria you are looking for in a franchise, we will start by showing you 4 to 5 business models that we believe are your best “matches”. From that list you will identify one or two that you are most excited to learn about.
Now that you have narrowed down your list, it is time to request additional information from them. Franchisors will send you documents and possibly provide weekly webinars for your review. This step can often take several hours a week over a period of 3 to 4 weeks. While you’re learning more about the franchisor, they are also wanting to learn more about you, too. They will likely as you to fill out a questionnaire in order to determine whether or not you have the general traits and characteristics they desire in a franchisee – as well as the financial qualifications. If you both agree that you would make a good fit, you will move on to the next step.
Review the Franchise Disclosure Document
As you and your selected franchisor move on to the next step of the process, you will be given a Franchise Disclosure Document (FDD). This document contains a wealth of information including a variety of legally required disclosures that the franchisor must share with you. What makes this such a great tool in your research process is that every franchisor you speak with and receive a FDD from will be in the exact same format. This is ideal for comparing franchisors side-by-side to get a better feel for what they do and what they can offer you, as well as the flavor of the organization.
It is important to note, too, that the FDD is not a contract. Once you decide to invest in a franchise, only at that point will you be entering into a contractual agreement with a franchisor. That said, FDDs do include a copy of the agreement or contract that you would be signing if you decide to partner with them so you will be able to review that in advance.
Another critical resource included in the FDD are the names and telephone numbers of all current franchisees of that organization.
Validation
Both current and ex-franchisees are the people you will want to call to discover the answer to the all-important “how much money can I make” question, among others. Typically, existing franchisees are your most valuable source of information, and that’s why this next step is your most important one. When doing your research, probably the most important step is to reach out to several of these franchisees. This is where you will really begin to understand the franchisee/franchisor relationship for this particular organization. Just as important as those currently in a franchisee/franchisor relationship is the list of people who have left the franchise system. They may have left for a number of reasons, including business failure or even health reasons but definitely worth reaching out if you can to those folks as well. Chances are that you will find an overwhelming number of franchisees who are happy and supportive. Conversely, it is also an eye-opening experience when you find those franchisees who are unhappy for one reason or another. Find out what their complaints are and try to determine what sets them apart from the rest. Allow at least a couple of weeks for this process.
Meet the Franchisor
Once you have completed validation, and are ready to continue the process, it is time to meet with the franchisor. This will be a meeting between you and key personnel of the franchise company. Depending on the franchise and your location, this can be done locally, but know that you may need to travel to their headquarters. It is common for franchisors to organize gatherings that brings together key stakeholders in the organization. This is often referred to as “discovery days”. Meeting these key players of the franchise is an opportunity to find answers to any remaining questions and for you to gauge the supporting players within the organization – these may be the people you work with closely for support and training.
Make a Decision
This is the moment you’ve been waiting for. You’ve been meticulous in your research and interviews. Armed now with as much information as possible, it is time to determine if this is the best franchise for you. The question is very simple at this point: Is this right for your or not? It is or it isn’t, and your research and gut will tell you. No matter what decision you arrive at, it is time to move ahead. If this company has everything you want in a franchisor/franchisee partnership, do it. If it doesn’t, honor your feelings and pass.
Finding the right franchise for you will take time. There are a lot of preliminary steps and even then, there is no guarantee that you will find a perfect fit. However, these preliminary steps better inform you and ultimately set you up for success in the long run.
Fall is the perfect time to start the exploration process so you can start off the first quarter of 2018 with a new business and a new beginning!