6 Research Steps to Open a Franchise
So you’re considering opening a franchise – here, we list the most important things to do as you explore opportunities. It’s a big decision, and the steps below are best practices as you do the legwork to be sure you’re making the right choice. Set yourself up for success!
What to Research When Starting a Franchise
1. Identify your interests and goals.
Consider what matters most to you. Are you looking for financial freedom? Do you want to leave the corporate world behind? Are you driven to build a business that can grow? Think about what you’re good at, and match that with a franchise model that will help build on your strengths.
2. Determine your budget.
Identify your liquid assets (cash, stocks, bonds, etc.) and net worth. Your liquidity matters, because you need to support yourself while opening your store. A co-applicant can help you meet the requirement for liquid assets. Also look at what the initial investment range is for each franchise. This will give you an idea of your out-of-pocket expenses, so you can plan ahead.
3. Evaluate industries and select your franchise opportunity.
Are you looking for a needs-based retail business? Something you’re passionate about? Are you good at connecting with people in your community? Then a franchise with commercial sales opportunities might be right for you. Or maybe you connect with the culture of the franchise, and that’s the driving force behind your decision.
4. Contact the Franchise Development Team for more information.
As you explore how to own a franchise, gain all the important facts you can from your Franchise Development contact. Complete franchise research before your initial appointment, and prepare a list of questions to ask. How will you be supported in day-to-day operations? How will you get assistance selecting your location? Franchise information, especially the financials in the Franchise Disclosure Document (FDD), will be extremely helpful in your journey.
5. Reach out to other franchise owners.
Franchisors will allow and encourage you to speak with existing franchisees to gain their perspectives and experiences as an owner. Look for owners that match your age and/or professional background – and location profile. Talk to single AND multi-unit owners and owners whose stores have been open for less than one year. Make sure you’re prepared with a list of questions to ask. For example, you might be wondering about marketing support or why they enjoy being a franchise owner. Also ask the owner if they could recommend another franchisee to speak with about a particular aspect of the business.
6. Sign the contract.
After you’ve decided which franchise opportunity is best, take that last step! You’ve completed the process to start opening a franchise and taking control of your future. You should be proud of the choice you’ve made.
Start off on the right foot. Think about your strengths, evaluate your finances, and reach out to franchising contacts. You’ll have a wealth of information on your journey to opening a franchise.
To learn about the Batteries Plus Bulbs opportunity, fill out the form or call 866-855-8577.