How To Open a Franchise
Owning a franchise is much less risky than starting an independent business. There are many reasons for this, from the training & support all the way to the proven business model, but there are still right and wrong ways you can open a franchise. Below we will list the five keys to success when opening a franchise business. These tips should help you avoid potential pitfalls from day one to help you succeed significantly faster with your journey in franchise ownership.
Self-Evaluation
Firstly you need to ask yourself what attracts you to a franchise business. Is it since they have higher success rates and are easier than going it alone? Although this is true, it does not mean running a franchise is easy. You need to be prepared upon opening your franchise to put in the hard work and work long hours when you are new to build a solid foundation for your business. Even trading under a reputable brand name, it still takes to be successful and trusted in your local community.
Meet existing franchisees
Once you have found a franchise you are interested in, make sure to talk with existing franchisees. This can be an excellent opportunity to learn more about the franchise and the day-to-day but also get an insider’s perspective from the franchisee about the experience of running their franchise where you can ask questions from the support all the way to what mistakes they made from the beginning and how to avoid them this kind of information can be invaluable when you are new to the business.
Ask the franchisor questions.
This may seem pretty obvious, but you would be surprised how many people may find it intimidating to ask their franchisor questions before investing, but this is a crucial part of your franchise businesses potential success as you need to know the ins and outs of the business before investing any of your hard-earned money. So now you may be wondering what questions should I ask? Below we will list some of the most important questions you should ask a franchisor.
- How does the training work?
This is an important question to ask since every franchises training protocol is different for new franchisees. Some may be in person, but some may be entirely online, especially if you are investing in a technology-based franchise.
- Do I need prior experience?
This is by far one of the most important questions to ask, as some franchises will require previous experience in the field depending on which franchise you are investing in. This can also be a good way of deciding whether you would like to pursue a particular franchise or if it would be best to research another one in the same field, depending on how quickly you want to open your franchise.
Those are the most common questions a franchisor is usually asked when taking on a new franchisee before any investment is made. If you want to find more questions to ask a franchisor before investing in their franchise, consider reading our article where we list all the different questions you should ask a franchisor before investing in their franchise.
Choose your franchise location & secure funding.
Once you have found your ideal franchise and asked the franchisor the questions above and are satisfied with their answers, then you should start exploring different franchise locations and funding options. Firstly your franchise location should be researched carefully as this can make or break your franchise upon opening. There are many factors to consider when choosing a location for your franchise, such as demographics, traffic, and lastly, is the area easily accessible? If you would like to learn more about how to choose the best location for your franchise, consider reading our short guide on how to choose the perfect location for your franchise. Now lastly, in terms of funding, the good news is it’s much easier to access funding options as lenders are more likely to fund a franchise as it has a proven track record of success, so funding should be pretty simple to secure, making it easier to open your franchise as soon as possible.
Open your franchise business in your chosen location.
After securing funding, completing your training, paying your franchise fee, and signing a franchise agreement, you should be ready to open your franchise business in your chosen location and begin activities for your franchise business, such as marketing to let everyone know in your local community you are open for business to start seeing customers as soon as possible.