FRANCHISE BASICS FRANCHISE BASICS
BUYING A FRANCHISE:
THE 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.
1. MAKE AN INQUIRY
Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.
4. 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.
7. 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.
2. FRANCHISOR RESPONDS
3. FIND OUT MORE
5. FIRST MEETING
6. CONDUCT DUE DILIGENCE
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.
This is the time you will get a much clearer idea of the business, and the franchise team you will be working with.
8. 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.
Fill out an inquiry form or phone the recruiter for further details of the franchise opportunity that appeals.
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 franchise-experienced professionals can save you money in the long term, so it is a worthwhile investment.
9. 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.
FEB/APR 2020 | 150 | WWW.FRANCHISEBUSINESS.COM.AU
