For many, the fall marks a time of renewal. The kids go back to school and this tends to lead to a shift in approach to business as well. The long days of summer have come to an end and the holidays are right around the corner. With a renewed bustle of activity, there is a feeling of something ending and beginning at the same time. Fall is the perfect time to reflect, regroup, and make a plan of attack for the end of year and beyond. Perhaps, it’s with this feeling of renewal that it’s time to get the ball rolling to start your new business. That’s why fall is the perfect time to find your franchise – and it will give you ample time to open your business in the new year marking 2016 as a new beginning.
Here are some steps we’ll be going through to find your perfect franchise.
The Investigative Process
Now that you’ve made the decision to rejuvenate your life and start a business, let’s talk about the steps you should take to find the best franchise for you. This is the investigative process. It’s during this process when both you and the franchisor narrow down your choices. We want to match you with a business that meets your specific criteria. But we can’t do that unless we know what those criteria are. We learn these criteria by asking you questions designed to help us narrow our search and provide you the best matches.
Also, when you invest in a franchise, you’re going to sign a contract. Because contracts are typically for 10-years, it’s important that you love the partners – the franchisor and fellow franchisees. You will have an opportunity to get to know them somewhat before you sign on the dotted line – we will teach you how . This takes time – allow at least a month for this initial selection process.
Here are some additional steps we’ll take to hone in on the best fit for you.
Find Your Franchise – Evaluate Franchisors
As you evaluate different franchising options, you’ll want to be as informed as possible. Each type of franchise business has its merits and strengths. There are opportunities in nearly every business category, and many have financing options to fit your needs. You’ll want to gather as much information as possible. Your franchise broker – hopefully the experts at Your Franchise is Waiting – will take you through an interview process to identify what franchises you will qualify for, which franchises match your long- term and financial goals, and which franchises are available in your market.
Request Information
Upon request, the franchisor will provide you with documents and videos for review. It’s important to thoroughly review this information and plan to commit several hours to this process. The franchisor may also ask for your information and request answers via a questionnaire to determine if you have the general characteristics they are looking for. If both parties agree it is a good fit, you’ll move to the next step.
Review the Franchise Disclosure Document
During this step of the exploration process, you will be given access to something called a Franchise Disclosure Document (FDD). Inside that FDD is a wealth of information, and various legally required disclosures. The beauty of this is that there is the same information, in the same format, in everyone’s FDD. This makes if fairly easy to compare franchise systems. The FDD in and of itself is not a contract. If you decide to invest in a franchise, you will be signing an agreement. This is a legally binding contract. This agreement, or contract, is actually inside of the FDD. So are the names and phone numbers of everyone who is a current franchisee of that system. Also listed are the names and phone numbers of anyone who has left the franchise system – generally because of either business failure or, occasionally, a health issue, in the last year. Current and ex-franchisees are the people you will be calling to discover the answer to the all – important “how much money can I make” question, and many others. This is the most important step in the due diligence process and is called “validation”. Allow a couple of weeks for this.
Interview Franchisees
Typically, the most valuable source of information comes from existing franchisees, that’s why this next step – often referred to as “validation” – could be your most important one. You should plan on calling on and visiting a number of existing franchisees during your investigation. You will most likely find an overwhelming number of franchisees to be happy and supportive, but it’s also eye-opening to find those who are not happy. Find out what their complaints are and try to determine what sets them apart from the rest.
Meet the Franchisor
It’s at this point in the process that you’ll want to have a personal meeting with key personnel of the franchise company. You may be able to do this locally, or you may need to travel to the headquarters. Many franchisors facilitate organized gatherings at a specific location, which includes key players in the organization and is what is often referred to as “discovery days”. Meeting these key players of the franchise is an opportunity to answer any remaining questions and for you to gauge the supporting players within the organization – these may be the folks you work with closely on support and training.
Make a Decision
Now, that you’ve taken all the necessary steps to make an informed decision, you’ll need to determine if this is the right franchise for you. It either is or it isn’t, and you’ll know which it is. In either case, it is time to make a decision and move on. If this company has everything you wanted, do it. If it doesn’t, eliminate it and go to the next one.
As you can see, completing these preliminary steps to find the right franchise for you, and to set yourself up for ultimate success, takes time. That’s why we think fall is the perfect time to start the exploration process so you can start off the first quarter of 2016 with a new business and a new beginning!
