THE FRANCHISE GUIDE
THE PROCESS OF OPENING A FRANCHISE
So you’ve found your dream franchise—now what? Here’s your step-by-step guide to opening a franchised business
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ranchising is a great way to make your dreams of owning a business come true, but there are several essential items to consider before putting pen to paper. Carrying out proper due diligence ensures the success of a business and signing the franchise agreement is only the beginning of the work needed to get a franchise started. Here, you’ll find the list of steps that franchisees normally take before opening their own business to the public. These steps begin after signing the franchise agreement, and take business owners on the path to the grand opening day, when they can begin serving their customers and community. Site selection: Finding the perfect location in a community ensures that a franchisee can reach a steady and loyal clientele in their community. The site selection process can work differently across different brands. For example, if the site has been secured prior to signing the franchise agreement, the site details will be included in the franchise disclosure document. These details include demographics, traffic counts, information from the landlord, and any other relevant information pertaining to the location.
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If the site has yet to be selected, the franchisee may sign a commitment agreement instead of a franchise agreement, and then the site selection process will take place. When the site is found, they will then sign the franchise agreement, which will include the site details. Alternatively, some franchisees will sign the franchise agreement before the site is selected, and when the site is found, will sign an addendum outlining the location details. In either case, the franchisee will receive a new disclosure document including the site details, and will sign the acknowledgement of receipt for the site. After that comes signing the lease, or a sub-lease if the location will be rented by the brand’s head office. If the franchisee is responsible for building out their new location, they will look to hire a local engineer or architect who ideally has experience with building a similar type of business in their community. This ensures that the builder has knowledge of the building requirements according to their municipality. As the site is under construction, the franchisee will be working with the architect, the engineer, the general contractor, and the various tradespeople to get the site built to the specifications outlined by the franchisor. The
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