How to Open a Franchise in 5 Easy Steps

At a time when most people dream of working for themselves, it’s easier than ever to find opportunities to do so. What might surprise you, though, is that you don’t necessarily have to start your own business to be your own boss. Franchises have become a popular way to make entrepreneurs’ dreams come true, and you’ll find many solid ventures. For one thing, most franchises are well-established brands, so the marketing and outreach are already done for you. For another thing, they’re a little less risky because you already know the business model works and people like it. Opening a franchise also takes a lot of major decisions off your plate, such as decor, signage, and the business name. If this type of business structure sounds like something you’d be interested in, you’ll just need to follow the next few steps to get started.

Choose your franchise

Finding the right franchise opportunity for you is a process. You’ll need to start with some important decisions. Some business owners go out of business because they fail to acknowledge their own strengths and weaknesses, but this is just one consideration. Just because you believe a particular business will do well in your area is not enough of a reason to open one. Instead, choose a company you’re interested in and believe you can grow with your particular skills.

Secondly, consider the core values of the company you wish to join. Make sure their policies and practices align with yours. This might include hiring policies, guidelines, and other rules. Also, and maybe most importantly, you’ll need to consider the cost of the franchise. Is it an amount you can come up with or get a loan for? Will you make your money back in a reasonable amount of time? Every franchise structures their costs differently, so make sure you research the one you’re thinking of opening before you make any other decisions.

Secure your funding

Before your planning goes any further, you’ll want to make sure you’re able to get the proper funding for your franchise. Because franchises are tested business models, you have a better chance of getting a loan for one of these than most other businesses. A good place to start is with the Small Business Administration, which offers government-guaranteed loans with low interest rates. They also have a lot of information available for small business owners and plenty of resources to lead you in the right direction. Another option is a bank loan. These may be a little harder to get approved for, but often offer good terms.

Find your location

Depending on the type of franchise you decide to open, you may be limited on locations. For example, if you were to open a liquor store in New Jersey, you would have to make sure it follows local regulations. Other restrictions may be imposed by the business you’re franchising. They may have property requirements, such as size of building, size of town, or proximity to a main road.

Once you’ve found a location, you usually decide whether you’d like to buy or lease the property, and each has some advantages. If you buy a property, you might have fewer restrictions on what you do with it. You can build on it, change it, etc. But leasing the property usually comes with less risk. In other words, if the business fails, you can simply let the owner know you’re not renewing your lease and walk away.

Prepare to open for business

Once you’ve secured a location and paid your franchise fees, you can start preparations for opening day. Depending on the franchise, you might need to remodel, rebuild, or restructure your existing property. You might also have to lease or buy equipment, stock your inventory and supplies, and hire a staff. The ins and outs of these procedures are usually thoroughly covered by the company you’re franchising, and they almost always offer on-site training.

Open your doors

With the proper steps in place, opening your doors for business is an exciting event. Your franchise company probably already trained you on marketing, and you likely included funds to advertise in your starting budget. Most franchise owners request all of their new employees to be present on opening day in anticipation of a crowd. They also may slightly overstock to accommodate their customers. No matter what type of business you open, make the best first impression on the customers. They’ll be telling their friends about the experience either way, so make sure it’s a good one.

Freelance writer with BA in English from Binghamton.