BUY­ING PROCESS

It can take three months or 18 months to find and open up a fran­chise. This is the typ­i­cal path that will take you to fran­chise own­er­ship.

Inside Franchise Business - - Contents -

MAKE AN IN­QUIRY

Fill out an in­quiry form or phone the re­cruiter for fur­ther de­tails of the fran­chise op­por­tu­nity that ap­peals.

FRAN­CHISOR RE­SPONDS

If you have emailed an in­quiry, typ­i­cally a fran­chisor will send out an in­for­ma­tion pack to you, and fol­low this up with a phone call.

FIND OUT MORE

Fill out an in­quiry form or phone the re­cruiter for fur­ther de­tails of the fran­chise op­por­tu­nity that ap­peals.

CON­FI­DEN­TIAL­ITY

The fran­chisor will ask you to sign a con­fi­den­tial­ity agree­ment be­fore shar­ing sen­si­tive in­for­ma­tion with you.

Ex­pect a copy of the dis­clo­sure doc­u­ment, draft fran­chise agree­ment and the Fran­chis­ing Code of Con­duct, plus an in­for­ma­tion state­ment.

Your fran­chisor might also send more com­mer­cially sen­si­tive in­for­ma­tion to help you con­sider the vi­a­bil­ity of the fran­chise op­por­tu­nity and build your busi­ness plan.

FIRST MEET­ING

This is the time you will get a much clearer idea of the busi­ness, and the fran­chise team you will be work­ing with.

CON­DUCT DUE DILI­GENCE

This is a cru­cial stage, so take your time and be thor­ough in your re­search. You will need to sign a doc­u­ment con­firm­ing that you have re­ceived in­de­pen­dent ad­vice, or that you have de­cided not to do so.

Ob­tain­ing ex­pert opin­ion from fran­chise­ex­pe­ri­enced pro­fes­sion­als can save you money in the long term, so it is a worth­while in­vest­ment.

PROVE YOUR­SELF

You will need to cre­ate a busi­ness plan and show to the fran­chisor you have the ca­pac­ity to take own­er­ship of and drive this par­tic­u­lar fran­chise unit.

A fol­low-up meet­ing will en­able you to ask fur­ther ques­tions fol­low­ing on from your due dili­gence, and for the fran­chisor to fur­ther quiz you.

OTHER STEPS

Some brands can in­clude a num­ber of in­ter­views, try-be­fore-you-buy work ex­pe­ri­ence or a panel re­view.

The fran­chisor might ask you to com­plete a pro­fil­ing as­sess­ment.

DON’T RUSH IT

The process to get from in­quiry to sign-up could be a mat­ter of weeks, or it could be months.

Buy­ing a fran­chise is a sig­nif­i­cant, long-term com­mit­ment. It is im­por­tant not to rush the process.

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