It’s no surprise that the franchise industry is set to grow exponentially in 2016. For many reasons, modern-day employees want to be their own boss. The trend of pairing baby boomers with younger millennials is leading to many successful partnerships within the franchising industry. The fresh, passionate and technological savvy millennial who is eager to completely ditch the corporate ladder is often the perfect counterpart to the baby boomer who wants to be their own boss and has the experience and financial stability to manage a franchise. The internet has also assisted in opening up a new global franchising market. Consumers, especially located in developing markets, often see international brands as symbols of superior quality and status, unlike the more common, local domestic brands. International companies are utilizing this status and starting new franchises abroad.
If you’re considering ditching the corporate ladder and opening a franchise business, we have steps that may help you with your new endeavor:
- Due Diligence. Do you own research and find out as much information as possible, including types of franchises, location options, a timeline for opening, etc. Lloyd Claycomb, CEO and franchisee, suggests spending sufficient time on the exploration process so you set realistic goals for yourself and your future business.
- Now it’s time to meet with the franchise business that you’re interested in. Learn the requirements to open your own franchise, determine operations information and find out the kinds of training, marketing and operational support the franchise representative can offer you.
- Business Plan. Review all of the information that you’ve received from the franchisor and include your own research into market conditions. Incorporate this information into a thorough business plan. Make sure your business plan includes estimated investment costs and projected returns.
- Financial Options. Internal financing options are typically available through the individual franchisors in order to help the franchisee afford the cost of opening a new franchise location. All programs have varying benefits, but typically appear in a low-interest environment with more relaxed approval standards, which are usually easier to obtain that the more traditional loans offered at banks and credit unions.
- When you’re sure you meet all requirements for franchise ownership, you may proceed to signing a binding agreement with your franchisor. Always be sure to have your attorney review the contract before you sign it. If you have any questions or need more information, take the time to get satisfactory answers from franchise representatives before agreeing to anything.
- Orientation Programs. It’s common in the franchise world that all new owners are required to participate in training, which will help them prepare to run their new business. A franchise typically has figured out their own unique recipe for success, so the new business owner must take the time to learn the secrets of the franchise.