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The Franchise Purchasing Process is Not a Race

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The Franchise Purchasing Process is Not a Race

By FranchiseKing, Guest Blogger
Published: December 15, 2015 Updated: December 15, 2015

Once you’ve made the decision to seriously look into finding a franchise opportunity to buy, your wheels will really start to turn.

You’ll have more energy than usual. You’ll have a spring in your step. It can be a pretty exciting time, especially if you are a corporate refugee. If that’s the case, just the idea of not having a boss will prove to be quite refreshing.

Breathe

What you’re thinking of doing is a pretty big deal. It’s considered to be one of those “major life changes.” And, if you do become the owner of a franchise business, it’s going to impact your family in a big way. That’s why it’s important to go slow. Take a deep breath or two before you begin this journey.

It’s Not A Race

Just because you’ve “made the decision” to potentially become your own boss, doesn’t mean it has to happen in 3 weeks.    

The franchise purchasing process is a step-by-step process. And, all the steps need to be taken slowly. But steadily.

The Steps

1. Determine Fit

The first thing you need to do-before you look at any franchise opportunities, is to make sure you are the right fit for a franchise-type business. Will you follow the rules the franchisor lays out? Will you do things their way?

2. Determine Skills

Take a hard look at your skillsets. What are you really good at? Are you a great manager of people? Are you good with numbers? Are you a sales superstar? Whatever your top skills are, make sure the franchises you look into will utilize them.

3. Talk With Your Family

Your family is involved in your business even if they’re not physically involved. Have a heart-to-heart talk with them about what you’re thinking of doing. Get their input. Make sure they understand that there are going to be serious demands on your time-especially when you first open your business.

4. Do A Net Worth Statement

Before you actually start contacting franchisors it’s best to know where you stand financially. A net worth statement will lay everything out for you in black and white. If you need to do a net worth statement, you’re welcome to use the net worth calculator my friend created. It’s free.

Once you know what your net worth is, you can start thinking about a budget. How much of your own money will you be willing to risk?

5. Find Suitable Franchises

Search through a few franchise opportunity websites, and magazines, but only focus on franchises that you can best utilize your skills with. And, make sure you stick to the budget you have in mind.

6. Do Research

Formally request information from the franchisors you’re interested in learning more about.

Once you’re engaged with them, start asking questions about the opportunity. Find out what makes their brand so good. Go through their process, which may include your participation in webinars and/or conference calls.

Once you have a good understanding of their business, call existing franchisees and ask them how happy they are. Ask them if they would do it all over again if they could. You can even ask them how much money they’re making as franchisees.

7. Get Loan Information

Most of the people I’ve worked with over the years needed small business loans of some type to get their franchises up and running. Go here for loan information.

8. Legal

Hire a franchise attorney to look over the legal documents you’ll be receiving as a prospective franchise owner. There is no reason for you to go through hundreds of pages of documents all by yourself. This is when to hire an attorney.

9. Visit Headquarters

If the franchisor feels you are qualified, and would potentially make a good franchisee, you’ll get invited to headquarters for what’s known as a Discovery Day. It’s basically a meet and greet where you’ll be able to meet the staff and they’ll be able to meet you, face-to-face. I always recommend going to a Discovery Day as long as you are serious about the franchise and are ready to move forward soon after your visit if things look promising. 

10. Decision Day

The final step in the franchise purchasing process is the day you make your decision.

If you’ve done good research, are looking at a franchise opportunity that can utilize your skills and qualities, and have done everything I laid out, slowly and steadily, your decision shouldn’t be difficult. 

About the Author:

FranchiseKing
Joel Libava

Guest Blogger

The Franchise King®, Joel Libava, is the author of Become a Franchise Owner! and recently launched Franchise Business University.

Comments:

Truly a motivating article to grab franchise job with both the hand. As indecisiveness & less knowledge wouldn't make anyone to be successful on the following venture. Also support of the family is very much important when taking a bigger decision of life.
Thanks for your comment, Kimmy. Getting family members involved is so important these days. Joel Libava
Joel, great article. Wise words. We work in developing franchisees in LatinAmerica, mostly working with American Companies as franchisors and your advices are really close what we try to communicate to our customers. Thanks.
Great to hear, Serrafj. Keep on going! Joel Libava

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