Steps to Franchise Ownership
Time and Money Needed Well Before You Open Your Doors
Here's a guide to the steps you'll take, with an approximate guideline of how long it will take.
Know Yourself
From the moment the vague idea of “let’s start a franchise” enters your mind to the moment you actually go out to look at franchise business for sale offers, it’s a long time. If you are serious about starting a franchise, you must first sit down and discuss the plans with your family. Then try to understand the reasons for joining the franchise and most importantly, make sure how much money you can gather. Depending on your seriousness, this can take between 1 month and 3 months.
Look into the Market
This due diligence process is the most vital part of starting a franchise. Hurry it up and chances are that you will end up choosing the wrong franchise concept! So, look at various categories and slowly bring it down to two or more franchise opportunities of your liking. If you are methodical (which you should be), this stage will take nearly 3 months or more. If you engage a competent franchise consultant, then the time may narrow down to a month and a half.
Explore the Concepts
Besides spending considerable time going through the new FDD, you will need to spend some time in answering a franchise business for sale offer and signing a franchise agreement. In the meantime, you will visit the franchisor on Discovery Day and talk to the ex- and present franchisees in the system. So, a minimum of one month will be needed.
Start the Actual Work
The moment you sign the franchise agreement, the countdown to grand opening will start. First and foremost will be the initial training, which most top franchises hold for two weeks. Both off-site and on-site training will be provided during this period. If you are opening a kiosk or module, then about 14 days will be spent in scouting for a location and getting the kiosk/cart ready. For retail and food that needs big space, about 1 month is required to find a good lease agreement and another two months are needed to redecorate it.
If you are hiring, a month or less may be needed to interview and select people. The marketing campaign as well as the processes of getting requires licenses and permits will go on simultaneously. Home-based franchises, of course, needs less time to set up (still about 1 month). So, hoping that everything goes smooth, about three months will be required between signing the franchise agreement and hanging the “open for business” placard.
