The Ultimate Franchise Research Guide is your complete resource from Fransmart, the leading franchise development company for emerging brands, for getting started on your franchising journey.
What is a Franchise business model?
A franchise business model is ideal for someone who wants to own their own business but doesn’t want to start from scratch. The franchising system will allow you to acquire a ready-made company with a tested brand and proven systems.
Who is a franchisor?
In simple terms, a franchisor is the owner of the business you would be buying. It is the franchisor with whom you would be setting up your franchise and building it under the roof of the brand or company franchise system. The franchisor is the owner of the trademark(s) and the operating system for the franchise.
Who is a franchisee?
When you buy the franchise from the franchisor, you are the franchisee. As a franchisee, you are licensed to use both the trademark and the operating system of the franchisor’s business.
How to start a franchise?
While franchising is an easier path to business ownership than starting from scratch, there are still many steps to consider on your franchising journey.
Step 1: Understand the different types of franchises available in your location. Select a franchise that aligns with your aims and your desired goals.
Step 2: Once you have selected a franchise, create an LLP or a corporation for your business. Determine if the franchisor requires franchisees to have a specific corporate structure.
Step 3: Ensure that you have the required net worth and liquid capital for that franchise. If not, seek outside investors.
Step 4: Talk to different franchisees to understand their perspective on the business. This will help you avoid some of the mistakes others made when opening the first location.
Step 5: Create a business plan for your franchise. Take your time and think about the business plan thoroughly. Make a business plan which is not dream-based but growth-based.
Step 6: Sign the franchise agreement and contract with your franchisor.
Step 7: Hire professionals that are suitable according to your budget. Do not forget that you have just started your franchise, and it is essential to have professionals who take your franchise as seriously as you do.
How to find the right location for your franchise?
Location, location, location. Choosing the right real estate for your franchise location is imperative to its success.
Step 1: Understand the aesthetics, brand values and target demographic of your franchise. This information will help dictate the area of town to hone in on for a location.
Step 2: View different locations and different times of day to get a sense of the traffic flow. You want a location that already draws in your target customer so you can take advantage of natural walk-in traffic.
Step 3: After collecting a database of potential locations, share the top contenders with the franchisor. The franchisor knows more about the brand and can help you select the ideal location. Additionally, some brands have real estate consultants that help franchisees choose the location.
Step 4: Once you find the perfect location, negotiate favourable terms with the landlord.
Top Emerging Brands for 2022
Success in franchising starts with selecting the right brands. In order to generate wealth, you need to get in early with an emerging brand and ride the growth wave to riches. At Fransmart, we find early-stage brands that our experience tells us will become the name brands of tomorrow. Our current portfolio of top franchises includes:
- BROOKLYN DUMPLING SHOP
- RISE SOUTHERN BISCUITS & RIGHTEOUS CHICKEN
- IKE’S LOVE & SANDWICHES
- CURRY UP NOW
- JARS BY FABIO VIVIANI
- THE HALAL GUYS
- TAFFER’S TAVERN
- SAVANNAH SEAFOOD SHACK
- DUFFS CAKE MIX
For more information on any of the above brands and to learn more about the franchising process, contact Fransmart today.