How to select and buy a Franchise?
All set to live your dream and you also know that franchising is the best way to live it. But you are unsure of which franchise to select? Is the thought of the process of selecting a franchise giving you nightmares? Then just take it easy, we not only tell you how to select a franchise which best suits your business plan but we also go on to tell you how to buy it. We take you through the entire process of selecting a franchise.
7 easy steps to become successful
• Objectives First you should determine what is your reason for buying a franchise? Also what is your area of interest? You should be thoroughly clear as to what you expect to gain by taking up the franchise. You should be focused on your goal.
• Research Once you have made up your mind on buying a franchise. You should start doing research to test various parameters such as demand for a particular franchised product, competition, demographics etc. Also one should not pre decide what franchise one wants to buy; the decision should totally be based on the research findings. Going into this phase with an open mind is a must.
• Shortlist After doing the research shortlist a few franchisors that you think interests you. Then start sending them requests for more information. From here onwards note down each and every interaction that takes place with the franchisor or his staff. These interactions will give you an idea about the functioning and professionalism of the franchisor.
• Franchise rules Ask the franchisor for a document which contains the history, balance sheet. Sales target etc of the company. This document is also supposed to have all the necessary details of the company. You should do a detailed analysis of this document as your relationship will be based on this document.
• Call up existing franchisee This is the most important step in the entire process. Interaction with existing franchisees is very important as this will give you a proper idea with regards to the functioning of the franchisor. If possible one should also try and talk to franchisees that have quit recently and try to know their reasons for quitting.
• Narrow down your choices After undertaking the required steps, you are closer to making that crucial decision. So start visiting the franchisor and meet them in their office. This is the time that you will get to meet the top management of the company. After your meeting go through all the things on which you have evaluated the franchise. During this stage even the franchisor will be evaluating you with equal interest.
• Make the decision After taking all the research into consideration a logical and a rational decision should be arrived at.