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Are you considering a franchise opportunity? If the answer is “yes,” then it’s time to start thinking about the journey ahead.
Throughout the process, you should keep your options open. You may think you know the franchise you want to work with, but that could change after you follow our 8-step process.
1. Evaluate Your Options: There are plenty of franchise opportunities out there, but you need to take the time to find the right one for you. It helps to narrow down 2-4 options that align with your capabilities and skills.
2. Talk to Other Franchisees: The franchisor may suggest some franchisees for you to talk to. But be sure to do your own research and talk to some other existing and former franchisees to get a feel for how the system works.
3. Draft Your Future Plans: Now it’s time to think about your business plan. Start thinking about where your revenue and cash flow will be in the months and years following your opening date.
4. Hire a Lawyer: The FDD and Franchise Agreement can be difficult to unpack. Talking to an expert will help you determine what’s in the contract you are signing (and will alert you to any red flags or unexpected fees).
5. Go to a Discovery Day: Visiting the franchisor’s headquarters will give you the chance to meet the management team and get a better feel for the business model.
6. Confirm Financing: Becoming a franchisee is a big investment! Make sure your projections are realistic and meet the expectations of your lender.
7. Finalize Entity Choice and Ownership Percentages: Now it’s time to iron out partnership and/or operating agreement provisions with any partners. This is a good time to talk to your attorney.
8. Sign the Franchise Agreement: You made your decision! Now you sign the agreement and pay the franchise fee. This is one big step towards a whole new journey.
Throughout this process, it’s helpful if you surround yourself with professionals who have guided many others on similar journeys. If you need help navigating the process, Spadea Lignana offers franchisee services to help.
