27 Aug How to Buy and Run a Franchise
With most startups not going as planned or gaining enough momentum, buying an already working franchise can be a very practical solution.
Especially considering how loans for startups are quite difficult to obtain, but buying an existing franchise is much easier.
The return-on-investment is also much quicker than new startups, which is another reason people prefer buying franchises over making them.
1. Picking The Right Franchise:
When you decide on buying a franchise, it is important to do thorough research on the types of franchises available and your own preferences.
You also need to ascertain whether the franchises you have narrowed down to are actually legit or just scams because such occurrences aren’t that uncommon.
If you are having trouble finalizing your pick, you can always ask a few franchisors to share their experiences to help guide your choice.
2. Securing The Financial Requirements:
Since buying a franchise will obviously cost you money, you need to decide how you’re going to arrange it.
Even if you don’t have enough savings, banks are mostly happy to give you a loan for this reason.
Different franchises have different costs, so you need to take that into account as well.
Because once you get the loan, you have to give it back regardless of whether or not your business succeeds.
3. Acquiring Process:
Once you have decided on the franchise and arranged for the money, you will most likely go through the following steps before acquiring the franchise:
● Reviewing the disclosure agreement.
Before signing the contract, the franchisor will most likely give you some detailed documents to help you familiarize yourself with the business, its input, and output.
● Applying for the buying process.
Once you’ve gone over the details of the business, you will formally make an offer to them.
If the offer is accepted, you most likely have an interview with them so they can assess your compatibility with the business and capability to buy it.
● Signing the contract.
If you clear the filtering process and sign the contract, the franchise will be transferred to your name.
However, before signing the agreement, make sure to have a qualified attorney go over it so that you don’t have any trouble in the long run due to any shady clauses.
Before handing over the reins to you, the franchisor will most likely hold a training period for you to get familiarized with the requirements of running the business.
Boosting The Business:
Now that you have obtained the business, you will need to work on its publicity and mechanics.
First and foremost, devise a marketing strategy that would work best for your business type.
Start the hiring process as your budget allows so that you can start delegating necessary tasks and focus on ways to improve the business.
In essence, buying and running an existing franchise may be time-consuming and require a lot of money, but it will definitely be easier than starting from nowhere as a startup.