Purchasing a franchise involves many steps — and a lot of time and effort.
But, if you’re organized, and you’ve taken the time to learn all you can about franchising, you’ll be able to speed up the process.
Keep reading to learn how long it will take to start your franchise business.
1. The Search
Typically, you’ll visit several different franchise opportunity websites until you narrow it down to a few franchises that look interesting. Here are three things you should be looking for in a franchise.
2. Contacting A Franchisor
This step is a big one, because it involves formally requesting information about a specific franchise. Expect to get a phone call from a franchise salesperson. Here are 10 questions you should ask during that call.
This step involves reading the Franchise Disclosure Document (FDD) and calling franchisees so you can re quest earnings information, as well as conducting other basic market research.
If you’re still interested, you may be invited to visit franchise headquarters for what’s known as a “Discovery Day.” This is your chance to meet with the team face-to-face, ask questions, and watch the business operate in person.
Ninety percent of the people I work with finance a portion of their upfront investment in a franchise. One popular way to finance a franchise is with an SBA loan.
There are a lot of legalities involved when you buy a franchise. Some of them are easy to understand, while others are rather complicated. That’s why you’ll need to hire an attorney.
But, wait until you’re close to choosing your franchise opportunity. And make sure to hire a franchise attorney, so you can get the right kind of legal advice.
6. The Big Decision
The last step in the franchise purchasing process is your decision. Before you say “yes” or “no”, consider the research you’ve already done, your budget, and the work that comes with owning a franchise.
How Long to Open Your Doors?
The franchise purchasing process — from the search to the purchase — will take three to four months. Typically, it will take another two to six months before you open your doors to customers.
However, if you purchase a home-based franchise opportunity, you should be able to open for business approximately two months after you sign your franchise contract.
Source: Joel Libava