When it comes to buying an established franchise, the steps to ownership are fairly similar regardless of what franchise you purchase. The initial phases are often exploratory (each side gets to know the other). If there is interest, both parties evaluate the terms to see if it is a mutually beneficial opportunity. Finally, a franchise offer is made, and the contract is signed.
The fundamental steps for potential franchisees are:
Step 1: Interest Inquiry
A potential franchise owner makes a simple phone call or submits a request for more information about the franchise.
Step 2: Submit Application
The candidate completes and submits an expression of interest form along with any other requested information. The franchisor provides the forms based on the information needed to evaluate the interest, financials, and goals of the franchisee. These forms typically consist of personal details, which are always kept confidential.
The franchisor will assess the data to decide whether the candidate’s profile fits the company’s business model. Most franchisors ensure that potential franchisees match the company’s core values and meet the financial financial requirements to move forward with ownership.
Step 3: Franchise Disclosure Document
Franchisor will provide candidates with a Franchise Disclosure Document (FDD) which is a legal document that is presented to potential franchisees in the pre-sales disclosure process. The candidate must receive the document a minimum of fourteen days prior to signing the franchise agreement.
Step 4: Interview/Presentation
A franchise representative will contact the potential franchise owner to schedule an interview, also known as a Discovery Day, which typically takes place at the franchisor headquarters or regional offices. The potential franchise owner is thoroughly introduced to the business during this visit and meets the support team and franchisor’s executives or partners. This gives both parties a chance to get to know each other, see if the visions align, and determine whether to move forward with the business partnership.
Step 5: Evaluation
Now that the franchisee has spent time with the franchisor, there is a better understanding of the franchisor’s operating system – training, marketing resources, business support, assets – and the decision can be made on whether to proceed with franchise ownership.
Step 6: Speak With Current Franchise Owners
The franchisee can and should speak with current franchise owners to gather as much information as possible. This is the best way to get a hands-on look at the business.
Step 7: Assess the Data
The franchisor and its partners will assess the franchisee’s expression of interest form, financial information, and all other available information. If necessary, franchisees can schedule a second or third meeting.
Step 8: Additional Meetings
Franchisees will often have more questions after reviewing the franchise policies, franchise disclosure document and speaking with existing franchises. Scheduling additional meetings allows potential franchise owners to dive deeper into the processes and make an educated business decision.
Step 9: Franchise Agreement
Once the steps mentioned above are complete, the franchisee can decide whether or not to proceed with the investment. If both parties choose to move forward, the franchisee will sign the franchise agreement.
Step 10: Plan
The franchisee is given a playbook outlying the business operations. This covers financial planning, site selection, ordering, real estate, opening the business, and more.
Step 11: Training
A reputable franchise will have an in-depth training program to set the franchisee up for success. These online and in-person training sessions cover all business operations from point of sale, operating equipment to opening and beyond..
Step 12: Prepare the Location
Once the real estate is secured the franchisee will have the resources and support necessary to get the business up and running. The majority of franchise businesses provide “turnkey” business solutions.
Step 13: Market New Location
Before the franchise is open, marketing initiatives are put in place. This builds awareness and excitement for the grand opening of the new franchise.
Step 14: On-Going Support
A franchisor will have a support team available to ensure a smooth transition and success. Typically a team member(s) will visit the new franchise during the opening and on an ongoing basis.
Conclusion
For entrepreneurs looking to open a business, a franchise is an excellent way to do so without assuming the risk of starting a new business from the ground up. Franchisees have the luxury of opening a business that already has processes, procedures and a plan in place. The primary benefit lies in the built-in support for all aspects of business operations, including management, promotion, planning, training, advertising, marketing, manufacturing, etc. The entrepreneur can find personal fulfillment as a franchisee and a member of a “family” while personally developing and learning new business skills.
Workout Anytime Franchise Opportunities
If you are looking for a new opportunity, investing in a reputable franchise combines the security of a proven business model and the support of the parent company with the benefits and flexibility of being a business owner.
One of the hottest franchise opportunities lies in the fitness segment, and Workout Anytime is one of the fastest-growing franchises in the industry. If you’re ready to turn your passion into a profession, we’re ready to help! Let’s talk about your entrepreneurial goals and the proven playbook and unsurpassed training program that we provide.
For more information, call our Workout Anytime franchise development team at 770-809-1425 or visit our website to submit the interest form.
Congratulations! You’re one step closer to turning your dreams into reality!
