How to Set Up a Franchise

McDonald's

Franchises are seen everywhere, but they are often overlooked as a business opportunity. They do, however, provide some clear and successful models and paths for starting a new business. One of the reasons franchises are successful is because they have a proven track record and someone else has already worked out a lot of the kinks.

Instructions

1. Find a franchise. There are hundreds of franchises that we see everyday, including many popular fast food restaurants. For these large franchises, you can usually go directly to their website and find out franchising information. These are not the only franchise businesses, however. There are thousands of small- and medium-size franchise businesses available. Franchise expositions take place all over the country that you can visit and look for a good franchise fit.

2. Consider the requirements and fill out an application. Most franchises require franchising fees and a certain level of capital available. This way they know you will be able to actually open the franchise store and not go out of business quickly. There are other considerations and agreements you must also be willing to commit to. Read and research the basic requirements carefully and then apply if you feel you have a good fit and can comply with all of the rules.

3. Meet with the franchise. The next step will be to meet with someone from the organization, and they will help you go through the process to getting accepted. Once you are accepted you will have to sign agreements and other documentation as well as pay any necessary fees.

4. Set up any normal aspects of a business such as getting loans, bank accounts and licenses. Your franchiser will help with some of these things, but you need to know what exactly they provide. You will definitely have to set up some standard business accounts on your own.

5. Get trained. Most franchises will have to teach a new franchisee the basics and complexities of how to run the franchise successfully. This training can run anywhere from a few days to several months or more. The franchise company should still always be available for help.

6. Open your franchise for business. Be sure to follow the model that the franchiser setup, this is how they became successful.

References

• Franchise Set Up Explained

Resources

• Read this Article in Spanish
• Franchise finder