How to Open a Franchise

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One way to start your own business is to open a franchise. A franchise is a license granted by a company to an individual or group to market its products or services. This business model gained traction in the 1930s as a way to help businesses grow quickly. McDonald’s, Subway, and H&R Block are among some of the most well-known franchises today.

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The fanchisor (company) takes care of most aspects of the business including supplying goods, marketing, and training. This means that the franchisee (individual) has  an easier time establishing and running the business. Here are some guidelines on how to open your own franchise.

First do your research

If you are sure that opening a franchise is right for you then do some research to find out what type of business you want to open. What is missing from your area? Are there already too many business offering the same services here? After selecting the right franchise, check out the Uniform Franchise Offering Circular to choose the best franchise for you.

 Finances

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Opening a franchise requires a cash investment and the amount will vary depending on the specific franchise. Check with the franchisor to see if they offer financing. If they don’t, you can approach banks and other lenders for the start-up costs. Keep in mind that you will also need to cover build-out costs, legal fees and other costs as well.

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Getting Started

After you have purchased a franchise and signed all necessary legal documents, you will begin to set it up with the help of the franchisor. Training and support services will be provided by the franchisor. Their experience in operating a well-established business will help you to feel comfortable about your business. Also, the reputation and growth of a franchise will help you attract more customers.

Starting a business can a scary endeavor, but with the direction of a franchisor, it can be less daunting.

 

 

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