How to Apply for a Franchise

Buying a franchise is one of the ways in which entrepreneurs can buy a business that has proven to be successful. There are several different types of franchise opportunities available, so it is important to research the costs of buying a franchise and the benefits of owning the type of franchise interests you.

Difficulty: Easy

Instructions

1. Put together a budget and figure out how much you can invest. A franchiser will evaluate your personal finances to determine how much you can afford to invest in his business, so having this information prepared is helpful. Having a budget and a financing plan in writing will also help you determine whether you will need to apply for a loan or seek additional financing from another source.

2. Contact the franchiser and ask about the application process. Most franchisers request that you fill out an application and set up a meeting to discuss your interest in their business.

3. Fill out and turn in the application and other paperwork the franchiser requested from you. The franchiser will use your financial information and background to determine whether you have what it takes to be a successful franchisee. If the franchiser determines that you might be a good fit for his business, he will schedule a meeting with you.

4. Prepare a list of questions to ask during your meeting with the franchiser. This meeting will be an opportunity for you to find out if this franchise is a good investment for you. The franchiser will also use this time to get to know you and make a final decision about offering you an opportunity to become a franchisee.

5. Evaluate the franchise contract. Upon approval from the franchiser, you will receive a franchise contract to review before signing. Read the details of the contract carefully and consider hiring an attorney to help you look over the contract.

References

• U.S. Small Business Administration
• The American Franchisee Association

Resources

• Franchise and Business Opportunities