The best way to find a franchise to invest in is to work with a franchise consultant. A franchise consultant knows the industry inside and out and will be able to tell you which franchises are suitable investments, and which ones aren’t.
Fransmart, the leading franchise development company for emerging brands helps franchisors find the right locations and potential franchisees find the right investment opportunities. The Fransmart team took Five Guys and The Halal Guys from their initial location to international sensations. The company has been around for over 30 years and has helped more than 5000 companies grow their brands in both the U.S. and Canada.
This article discusses the proven steps that have helped many to find a perfect franchise investment available for sale.
Define Your Business Goals
As an entrepreneur, you must set your business goals and be able to outline why you are considering franchise ownership. Your reasons may include a desire to be a business owner, the ability to control your earning potential, or even to develop a passive income opportunity.
These goals will set the foundation for a great starting point for your business. Ensure you set S.M.A.R.T. business goals: specific, measurable, achievable, realistic, and timely. Remember to review these goals regularly.
Identify Franchise Investment Opportunities
With business goals in hand, it’s time to research which franchises can best help you reach your goals.
According to Entrepreneur, the first place you are likely to search for franchise opportunities is online. Franchise business consultants like Fransmart have detailed information about their franchise brands on their websites.
When you find a franchise that piques your interest, submit an inquiry form on the website as part of your discovery process.
Evaluate the Franchisor’s Responses
Now that you have made inquiries about a potential franchise investment, you must pay careful attention to any red flags coming from the franchisor’s end. Are they easy to work with, give answers willingly, and supply materials you request in a timely fashion? If a franchisor is hard to work with at the discovery stage, it’ll be impossible to work with as a franchisee.
Franchise brokers may also directly represent a franchisor during this process. Since they act as a spokesperson for the franchisor, the same evaluation process applies to them.
Review FDD and Qualify as a Franchisee
They really understand the bones of a franchise, you need to review the Franchise Disclosure Document (FDD). This document details everything about the business you need to know before you decide to franchise. The FDD is the place where you can get a sense of the numbers behind the business if the franchisor has chosen to disclose them When you sign the receipt page of the FDD, a 14-day count starts before the date you will be offered a franchise agreement and required to pay the initial investment costs.
You should review the FDD with the help of a franchise consultant like Fransmart or a qualified attorney. The FDD contains 23 disclosure sections, including financial support, training obligations, and operational costs.
Interview Existing Franchisees
Testimonies from existing franchisees can help you get a feel for the day-to-day life as a franchisee and to hear first-hand the kind of success or failure current franchisees are experiencing. There are multiple online sources of franchisee testimonials, such as Yelp and Glassdoor, that will provide good and bad reviews from both franchisees and customers. A franchisor should happily put you in touch with their existing franchisees, but be wary as they are going to select the top-performing franchisees to connect you with. Do some research on your own to find franchisees and reach out to them directly. Ask them questions about the pros and cons of buying a franchise.
Attend the Discovery Day Event
Before you commit to a franchise, you should be invited to participate in a Discovery Day. The discovery day event is an opportunity for you to visit a franchise headquarters or a location they designate to meet the franchise management team.
The event presents another opportunity to assess your franchisors and determine if they are a good fit for you. This event may help accelerate or halt your decision to invest in a franchise.
The franchisor is also assessing your potential as a franchisee during this time to make sure that a partnership is in the interest of both parties.
Territory and Franchise Agreement
If both parties are interested in moving forward after Discovery Day, you’ll receive a franchise agreement, a binding contract between you and the franchisor.
The franchise agreement explains the franchisor’s expectations related to business operations, territories, and other exclusive franchise rights.
During the franchisee onboarding process, your franchisor will transfer its proven systems and processes to you. You are expected to hire qualified staff and undergo franchisee training with your managerial team. In training, your franchisor will cover the various steps involved in opening your store, including budgeting, construction site, and financing.
By following the guidelines provided above you are positioned for business success. Fransmart remains committed to guiding you through the entire franchising process, from identifying the right opportunity through to your grand opening.
Fransmart also offers a portfolio of profitable franchise opportunities for prospective franchisees to consider for investment. Our brands are some of the hottest, emerging concepts in the industry, selected to give franchisees the opportunity to get their foot in the door and ride the growth wave with the franchisor:
- RISE SOUTHERN BISCUITS & RIGHTEOUS CHICKEN
- BROOKLYN DUMPLING SHOP
- CURRY UP NOW
- IKE’S LOVE & SANDWICHES
- JARS BY FABIO VIVIANI
- THE HALAL GUYS
- TAFFER’S TAVERN
- SAVANNAH SEAFOOD SHACK
- DUFFS CAKE MIX
If you want to learn more about Fransmart brands and how to buy your first franchise, contact us today!