how do you become a franchise

12 steps to launching your own branch of a popular brand or business.

• 1. List your top companies or businesses. ...
• 2. Research the franchise market. ...
• 3. Evaluate investment and franchise costs. ...
• 4. Request a franchise disclosure statement. ...
• 5. Consider forming an LLC or corporation. ...
• 6. Write a comprehensive business plan. ...
• 7. Get the financing you need. ...
• 8. Apply for the franchise and an interview. ...

Full Answer

What do you need to know about starting a franchise?

Starting a Franchise. At its heart, starting a franchise is all about licensing. In the franchise business world and using franchise business models, business owners, known as the franchisees, purchase a license to use any trademarked logos, names, and business structures or formats or systems of the franchise owner, all known as a franchisor.. Franchise expert, Joel Libava, offers his ...

What are the advantages of starting a franchise?

• Long-term commitment. When a franchisee invests, it is difficult for her to leave the business.
• Better quality management. A franchisee becomes a long-term manager and continues to learn about the business and gains institutional knowledge about the business. ...
• Better operational quality. ...
• Innovation. ...
• Franchisees outperform managers. ...

What are the steps of buying a franchise?

• Matches your financial resources
• Provides you with the lifestyle you imagined
• Uses your particular skills and experience
• Provides a recession-resistant product or service
• Has a majority of happy and successful franchisees
• Employs an experienced and enthusiastic staff of personnel who will help you achieve your dreams of business ownership success

How do you start a franchise business?

When preparing for your big day, a few tips can help make it a success:

• Choose a date with high traffic. Your opening date and time should be ideal for attracting as many people as possible.
• Advertise to your local market. ...
• Send press releases to local media outlets. ...
• Invite friends, family and city officials. ...
• Decorate the store with grand opening paraphernalia. ...
• Organize exciting activities on opening day. ...

How Much Can a Franchise Owner Make a Year?

A quick online search for franchise owner salaries can range from $50k to $250k and up to a million annually . The truth is that there’s no set earnings amount when running a business. It all depends on the franchise, the business location, and how well the owner runs it.

What are the Risks Associated with Being a Franchise Owner?

No business enterprise comes without risk, so let’s examine a few of the key risks associated with being a franchise owner.

How to find a franchise partner?

You can find partners by searching for experienced businessmen and women. Make sure that they understand your business’ brand and philosophy. Good franchisees will act according to what’s best for the business as a whole. Avoid partners that are solely interested in their own profit.

What is franchising a business?

A franchisor is someone who franchises their business to an outside party. Franchising a business can be a lengthy, arduous process. As a business owner looking to become a franchisor, there are some things you should know before you begin. Read on to learn how to create a franchise and become a franchisor.

How long is a franchise disclosure document?

The document must include history of the business, rules and restrictions, and renewal terms. Due to all the relevant information, FDDs can be hundreds of pages long.

What is the process of recruiting?

The process of recruiting includes finding, training, and motivating potential partners. You need to make sure that you find good franchise partners to ensure your success. A good franchisee will be attuned to your business model and plans for future success.

How to protect your franchise?

You should consider using an attorney to best protect your franchise. You should discuss what protections you want for intellectual property, goods, and services. After finalizing the terms of the trademark, have your attorney file it with the United States Patent and Trademark Office.

Why is capital important for franchising?

Generating capital is important because franchising is costly. Most franchisors don’t make money until they’ve placed a few franchises. Knowing franchise costs will also help you generate your capital. You’ll find that volume is typically low early on, leading to poor franchise fee income. This low income can potentially last a year or two.

Do franchisees need an operations manual?

Legally, you are required to provide an operations manual to all of your franchisees. Your operations manual should detail how operations are run on a day to day basis. You should also have a section on administration. Include other information such as responsibilities, fee payment, and compliance to rights and responsibilities.

Is becoming a franchise owner right for me?

The first step to choosing a career is to make sure you are actually willing to commit to pursuing the career. You don’t want to waste your time doing something you don’t want to do. If you’re new here, you should read about:

How to become a Franchise Owner

It is imperative that one makes sure they have the right traits and characteristics needed for franchising, or failure is almost a given. A Bachelor's Degree in Hospitality Management or Business Management can be an asset.

What is editorial disclosure?

Editorial Disclosure: Inc. writes about products and services in this and other articles. These articles are editorially independent - that means editors and reporters research and write on these products free of any influence of any marketing or sales departments. In other words, no one is telling our reporters or editors what to write or to include any particular positive or negative information about these products or services in the article. The article's content is entirely at the discretion of the reporter and editor. You will notice, however, that sometimes we include links to these products and services in the articles. When readers click on these links, and buy these products or services, Inc may be compensated. This e-commerce based advertising model - like every other ad on our article pages - has no impact on our editorial coverage. Reporters and editors don't add those links, nor will they manage them. This advertising model, like others you see on Inc, supports the independent journalism you find on this site.

What is the IFA?

The IFA compiles information on franchises, lobbies for legislation favorable to franchises, and provides resources and aid to businesses looking to become franchises. The association also publishes reports on the legalities involved in franchising, including one titled An Introduction to the Law of Franchising.

What did Farid do to open a franchise?

To see what might be involved in opening a franchise, Farid decided to do a test run himself, in the form of a second store. He found a building, filed the documents, and went through all the minutiae himself, from interior decoration to training the staff.

How many flower shops did Tariq Farid own?

Tariq Farid had owned four flower shops by the time he was 19. He remembers sitting with his mother, who helped him around the shop, when he was making sixty dollars a day, and he’d tell her of his dream to someday make seventy. When he reached his goal, he turned it in for another dream.

What did the Silicon Valley legend talk about?

The Silicon Valley legend talked with Inc. about the road to fast growth and the land mines along the way.

How much did franchises make in 2007?

Franchises accounted for $1.3 trillion in revenue and $153.7 billion in payroll disbursed to 7.9 million workers.

What does Mulgannon say about franchising?

Mulgannon says that if everything's not in order in a company's Item 19, he'll decline to work with them. These legal complications are an area in which the hopeful franchisor may want to seek out professional help. Farid wouldn’t exactly advise anyone to go about franchising their business without expert advice.