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What are Some Tips for Starting a Franchise Business?

Article Details
  • Written By: Malcolm Tatum
  • Edited By: Bronwyn Harris
  • Last Modified Date: 19 November 2016
  • Copyright Protected:
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    Conjecture Corporation
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Starting a franchise business is not an overnight process. Choosing to become a franchisee means evaluating various opportunities, qualifying for those that interest you, and managing to secure the funding and other resources necessary to actually launch your new business. The process also requires a great deal of dedication and time, two factors that often discourage people who are looking for a quick way to get rich.

If you are serious about starting a franchise business, your first step is to decide what type of franchise you want to operate. There are all sorts of business types that are franchised across the world. You may want to own a coffee franchise, or set yourself up to franchise ice cream products. If competition is low in your area, a franchise cleaning business might be a good idea. Consider several different types of franchises, and focus your attention on those that seem to be a good fit for your interests, abilities, and long-term financial goals.

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Next, you should obtain circulars from several franchisers who currently provide franchising opportunities. In the United States, franchisers are required to provide this data to any party who exhibits a serious interest in their program. The circular is usually a comprehensive document that provides access to such important data as a breakdown of annual revenue generated by the stores in the franchise, and policies and procedures that each franchisee must follow in order to be accepted and maintain a connection with the franchiser. Reading through several circulars will give you an idea of what type of commitment you must make in order to start a franchise business with a particular franchiser.

Keep in mind that the qualifications and ongoing policies and procedures will vary from one franchiser to the next. Some require very strict adherence to policies, even down to allowing the franchisee to only purchase products from approved vendors. Others provide more room to personalize the franchise to local circumstances, while still offering the core products sold by every franchisee in the network. Your task is to find the franchiser who provides the type of opportunity and support that you need to be successful.

Once you have settled on and been accepted into a program, you can begin the task of starting a franchise business. It is not unusual for franchisers to provide training courses that must be successfully completed before the franchiser is accepted into the franchisee network. After you are fully certified, the process of starting a franchise business will speed up considerably.

Opening your new franchise is often a task that is conducted in tandem with the franchiser. The process of starting a franchise business includes working with the franchiser to find and acquire a site for the business. It also includes arranging for the construction or alteration of the building that will house the business, and arranging for your employees to receive training. You are also responsible for setting up your accounting processes and obtaining the necessary licenses and approvals from local governments to allow the operation of the business. While some franchisers offer financial support with all these endeavors, you can expect to be responsible for much of the expenses with the start-up of your new franchise business.

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