Applying to be a franchisee can be the first step of your entrepreneurial journey. Here are some tips to make sure you can ace it!
Buying a franchise can be a great move for a would-be entrepreneur who doesn’t want to create a new business from scratch. However, franchisors tend to choose hard-working, motivated, creative, and problem-solving people who are as invested in growing as their brand. While applying to be a franchise of any brand, there will be many stages to your application, and it is necessary for you to make an impression upon the company as much as it is important for the company to prove to you that a franchisee of their brand will be a viable business prospect for you.
A typical franchise application will start with you applying to the online franchise portal of the company of your choice. This initial application will include your contact details, initial plan,size and location of the store. If found feasible, the company will call you for a face-to-face interaction to hear the rest of your proposed plan. To ease your way, we have assembled some tips for you to ace your franchise application:
1) Prior Experience/Knowledge: It is important for franchisors to know that the people applying to become a franchisee of their organisation have some prior working knowledge or experience in the sector of their business. For example, Domino’s prefers to franchise with employees who have previously worked for the organisation to some extent in the past. In other cases such as retail franchising, franchisors prefer candidates that have previously worked in the sector and have connections or know the ins and outs of the segment. Candidates whose parents or family members who worked or own their own business in a particular segment would also qualify as having had prior knowledge of the said segment.
2) Financial Flexibility: It happens more often than not that separate businesses in the same sector that offer franchises have different financial requirements from their franchisees. Some businesses may require a franchising fee, whereas others may omit it;some may require the franchise to buy stock and some may provide it as part of the deal. However, it is necessary that as a franchisee you clearly understand and agree to the financial terms of the business during your application.
3) Knowledge of Primary Location: One of the foremost things in a franchise application is the location of your desired franchisee outlet. The location is a factor that widely suggests to the franchisor whether or not you have thought your business plan through. The franchisee will be required to have quantifiable data of how that location will be good for the brand during the franchise application. This should include the average footfall that the particular location gets on weekdays and weekends; the number of walk-ins; expected the rent of the location; and the lease period.
4) Personality: The personality of the candidate of a franchise application may seem like an obvious fact, but is included in this list because of the impact of its importance. Franchisees are looking for an application that will not only follow the guidelines of their franchisee, but also be someone who is adept at creativity and problem-solving. They are looking at a candidate who is able to manage the fine line between following tried and tested methods when it comes to marketing, book-keeping and store layout, and also someone who can bring uniqueness to their particular franchise and treat the brand as their own business. An important factor that may help you determine if you are fit to be a franchise is to speak to a company’s current franchise owners and gather first-hand information on owning and operating a franchise of a business before your interview with the franchise heads.
The most important thing to keep in mind, however, is that franchisors look for competence and confidence in the people they partner with to be their franchisees. So, ensure to choose the business right for you!