How to Buy a Franchise?

By: Jessica Miller - Staff Writer for RedHotFranchises.com

 

Steps to Take When You Plan to Buy a Franchise

Thinking about buying a franchise? Looking for steps that you can take that will simplify the process a little bit?

Below, you will find a guideline of steps to take when you plan to buy a franchise.

1. Find a source that will lead you to the best franchising opportunities. Once you have decided to look into buying a franchise, you want to be sure that you are looking at the best opportunities. The best way to do this is to visit www.redhotfranchises.com and search the Franchises On Fire section for the best franchising opportunities.

2. Read about the franchises that are the most interesting to you. Think about your interests. If you are a do-it-yourself-er, why not look into an Ace Hardware franchise? Want to be able to put your love of landscaping to use? Maybe your best bet would be to look into a franchise with Lawn Doctor. You'll be able to learn more about the opportunities that are available and about the businesses that might be most interesting to you.

3. Request more information. Once you've come across a franchising opportunity that interests you, the obvious next step is to request more information about the company and about the possibilities for opening a franchise in your area.

4. Fill out an evaluation form that you will submit to the franchisor to see if you are qualified to open a franchise. Once you've received information about the franchise that you think that you would like to open, once you've decided that it really is an opportunity that you would like to pursue, you will need to fill out an evaluation form so that the franchisor can determine whether or not you are qualified to open a franchise. Common information that will be requested includes your contact information, information about your current career and job experience, financial information and information about where you would like to open a location of the business.  

5. Attend a Discovery Day. Once the initial getting to know you information has been exchanged between a franchisor and potential franchisees, the next step is for you to attend a Discovery Day sponsored by the franchisor. You'll travel to the company's headquarters, receive information about and meet the company's executive team and be able to get a better feel for whether or not it is the right opportunity for you.  

6. Review the UFOC with your lawyer and accountant. If, after attending a Discovery Day you are still interested in the opportunity, you'll need to really look over the business. One way of doing this is to take the Uniform Franchise Offering Circular with you on a visit to your lawyer who can go through the legalities and your accountant who can help you to determine whether or not the franchise is the right investment for you.

7. Purchase a franchise. If everything checks out and you're sure that you want to move forward, the obvious next step is to sign the contract and to purchase the franchise either with your own money or funds that you've obtained through loans or investors. 

8. Attend training sponsored by the franchise. Once you have purchased the franchise and have chosen a location, you'll attend a training sponsored by the franchise. You'll learn about their accounting procedures. You'll learn about customer service and the brand and plenty of other information about opening and operating your franchise business.  

9. Open and operate your new business, Once you've completed your training, all that's left is opening and operating your daily business while taking advantage of all of the tools that the franchisor has made available to you.

And of course, the final step is to grow your business and to enjoy being your own boss!