If you’re thinking of becoming a franchisee with an existing brand, there are many things you can do to help your application stand out from the crowd. From thorough research to understanding the application process – in this article, BusinessesForSale.com takes a look at some tips and strategies you can use.
Research
The first step you need to take is an important one: make sure you have thoroughly researched the brand you’re applying to become a franchisee for. That means getting to know their vision, mission and any relevant information about the franchise. One way to do this is to attend trade shows, such as CFA Franchise Canada Show where the franchisor might be exhibiting. You could also gain insights into how the business operates by speaking to some of its existing franchisees.
Ask the right questions
Many franchisors will encourage potential new franchisees to apply through their website, before moving to an in-person interview. Whether you’re applying online or face to face, prepare some answers to a few key questions beforehand:
- What made you choose this franchise?
- What are your plans for the success of the franchise?
- Do you know any franchisees that are unhappy? Why?
Interviews are not just a one-way street, however. Remember that you’re also interviewing your potential new franchisor, to find out if there are any potential hazards you haven’t spotted yet and to ensure you’re making the right investment. Asking some of these questions will also demonstrate your experience and seriousness about joining the brand.
- What profits can I expect in my first, second and third year?
- What training and support do you offer new and existing franchisees?
- Are there any marketing fees for franchisees, and how can I make the most of wider marketing campaigns?
Be passionate
While it can be useful to highlight any industry-specific experience you are bringing to the table, this is not necessarily a dealbreaker for all franchisors. If you can demonstrate a passion for the brand, recognise its values and align with them – that will give you an advantage over the competition. Your enthusiasm and curiosity can set you apart, as long as you have the finances to back them up, too.
The finances
Which brings us to arguably the most important part of your pitch: the finances. While there are many things you can do to make your application stand out, it isn’t likely to progress very far if you don’t have the necessary savings, or can prove you have adequate financial backing from a third party. Remember that there are many options available for financing a franchise, from business loans to small business grants. Check your credit strength, and make sure you thoroughly understand the terms of any loan you take on.
