How to Become a Franchise Owner

Starting a business ranks at the top of many entrepreneur priority lists. Connecting with a franchise gives entrepreneurs the opportunity to run their own business without reinventing the wheel. Franchises generally follow a planned system that produces predictable results, a concept that attracts many prospective owners. Become a franchise owner by determining if the concept is right for you and then finding the right franchise.

Instructions

1. Evaluate personal reasons for wanting to own a franchise. Brainstorm about personal strengths and any challenges. Review skills that the prospective owner possesses versus qualities that she lacks. Take a good look at her values and honor those deemed essential or non-negotiable.

2. Explore the owner's ability to handle financial risk. Figure out how much capital he plans to invest as start-up funds for the venture. Inquire about his potential to hire and retain staff members. Do an assessment of personal financial goals, and finally ask how his lifestyle might change once the business starts.

3. Research franchises to discover the best one to fit the owner's needs. Focus on businesses in certain industry groups or subgroups rather than individual franchises. For instance, if working weekend hours resonates with the owner then a food service franchise might work. Find franchises that support the owner's personal values.

4. Investigate the desired franchise by reviewing their brochures or videos. Carefully read the uniform franchise offering circular, a document outlining the history, costs and fees, audited financial statements, terms of agreement and other pertinent information. Visit existing franchises and meet with key staff. Make a decision.

Tips & Warnings

• Contact a franchise consultant to assist in finding the right business. Consultants often offer free services and their support saves the prospective owner valuable time.