The franchisees take advantage of tried and tested strategies, brand name, support from the franchisors, financial backing among others, and both franchisors and franchisees write their own success stories. Read on to know how you could start a franchise business of your own in just a few steps.
In the times when many people are struggling to strike a perfect work-life balance with high chances of redundancy, self-employment seems to be a far better option for the millennial. While going by the statistics, it is observed that half of all independent new businesses fail within their first two years whereas 90% of the franchise businesses become successful in that same time period.
Starting a franchise business comes up with a lot of benefits for the franchisors as well as for the franchisees. The franchisees take advantage of tried and tested strategies, brand name, support from the franchisors, financial backing among others, and both franchisors and franchisees write their own success stories. Therefore, owning a franchise is considered more beneficial to start off with a business.
Are you willing to start a franchise business of your own? Then, here are a few steps that could help you start a franchise business of your own.
Research the Industry
Before going into the battlefield, make sure you have given a fair amount of time to a thorough research of the industry that you’re interested in. Researching about the industry plays a crucial role in giving you the blueprint of the industry. While researching about the industry, make sure you cover aspects such as market competition, franchising history of the brand, role of franchisor and franchisee, financial status of the brand, what else the brand offers you as a franchisee etc.
Choose Your Franchisor and Apply for Buying franchise
After thorough research is been done, you could choose the brand that fits all your requirements and provides you with maximum advantages. As you choose the brand of which you would be buying a franchise, apply for qualifying the franchisor’s requirements. This is to be done to let the franchisor know that you’re an interested candidate so that they could consider you as a prospective franchisee.
Review the Franchise Agreement
The government asks all the franchisors to prepare a Franchise Agreement in which all the legal rights to open a franchise are mentioned. If you get selected as a franchisee, then the franchisor would provide you with the franchise agreement. You have to go through the franchise agreement carefully before signing it. For a better safety purpose, consult with an experienced lawyer and get clear about each and every point mentioned in the document.
Choose the Potential Site
Select a suitable location to start with your venture. A location of your franchise plays quite an important part in its successful journey. Study the potential site by analyzing market competition and demographics of the area. You could compare the studies of your potential location and the locations of already existing franchisees that are doing good job with the business.
Attend Training Provided by Franchisors
Many of the franchise based companies offer training for new franchisees. So, if your company provides training, then you should attend the training sessions. This will help you gain a deeper understanding about the corporate culture of your company and you will be able to do a good job as a franchisee.
After understanding everything about operating the franchise store, it’s time to plan a grand opening of your business venture. The opening must be grand as it works as a marketing tactic for your newly set-up business. The customers around your location would get to know that a franchise of this brand has been launched, hence compelling them to visit at least once to your store. And once they take out time to visit you, it’s your responsibility to convert them into your permanent customers!