
Opening your own business can be a challenge. However, starting with a franchise can give you tools that put you on the right track. Doing your research will help you find one that will be profitable while fitting best with your vision. Here are a few steps to lead you in the right direction.
Study the Market
Hire a franchise attorney that can assist you with understanding the legal end of opening a store like this. Determine what you want to sell, whether it is material goods, a service, or food. Once you have an idea, look into companies that offer that and find out what their requirements are for opening up a franchise. Figure out what the fees are to become part of their business, how much rent will cost you, the salary of your employees, insurance, and what you will have to pay for materials. When you find one that fits with what you want to spend and how you want to run your store, contact them and let them know you are interested.
Review the Agreement
Once you have visited the company you wish to work with, evaluate the franchise agreement they give to you. You might want your lawyer to take a look at it as well to ensure that you understand what you are committing to. This contract will detail everything the franchisor will expect from you. Be sure that you comprehend everything in it and if something is unclear, ask the company for clarification.
Get the Money
Talk to your bank about the options of business loans available to you to start your franchise. Your banker will check your credit and will need a list of your assets and accounts. They will be able to advise if they can offer you financing or if they recommend another type of loan. You can also contact the Small Business Administration to see if you qualify for a grant or loan with them as well.