1. Determine how much you are able to invest.
Since franchisors usually require an initial investment, it is critical you know what you are able to invest. Attend a franchise expo or tradeshow to find out about the business programs.
2. Narrow/Determine the type of businesses
Determine the type of businesses that you have an interest in and the limitations to each business. Is it something that you enjoy doing? Are you going to have to check into the location a lot or will you being able to let it take care of itself? Do you want to do the work and keep it a small operation? If you are going to have employees are you going to have a manager work with them?
3. Competition, Demand/Popularity & Cost
Once you narrow down the type of businesses, you need to determine if there is competition for this, and if there is a demand for the products or services that you are thinking of offering in your area. Find the franchises available for the type of business that you want and compare cost, as well as the popularity of the name brand and the income potential.
4. Does it make enough money?
Once you have analyzed the data on the industry and brands that are available for franchise, hopefully you have determined that you would either make enough money to make it worth your time or not.
5. Obtain the Uniform Franchise Offering Circular (UFOC)
Contact all the franchisors that you have selected and request a copy of their Uniform Franchise Offering Circular (UFOC). Once you have satisfactorily reviewed the UFOC you are ready to go forward by making an application to the franchisor.
6. Franchisor has a good reputation?
When you get to the point in the process where you are ready to sign a contract with the franchisor you need to make sure that the franchisor has a good reputation. You can find a great deal of information on the internet about the franchisors. You should also contact your local Better Business Bureau to determine if they have any complaints against them. Last, but certainly not least, you should make contact with a few existing franchisees to see if you can learn more about the company and the viability of the opportunity.
7. Review your job skills and resume
The more respected the store brand the more likely it will be important to have a business degree, previous management experience, and experience in operating successful businesses. In child care and education centers you will most likely need special degrees in child education.
8. Attend the franchisors new franchisee training program
Be prepared to attend the franchisors new franchisee training program. If the franchise you have selected is in the food service segment, it will more than likely be a requirement.
9. Reworking your franchise plans
You might have to rework your franchise plans depending on where you are in life. If you do not have enough experience for a big brand franchise, you might have to gain the work experience first. After time you may be able to participate with a bigger franchise business. But it doesn’t hurt to start big and work your way down, because you might just get that franchise you really want.
10. Time and Energy commitment
The last step is to give your franchise all of your time and energy to get the business off the ground. The first few years of any business are the hardest.