Essential guide to buying a franchise

Researching Opportunities:

The first step is to research different franchise opportunities. Assess your interests, skills, and financial situation to select a franchise that matches your goals.For instance, if you have a passion for food service, you might explore opportunities with brands like Maki & Ramen or Surf’n’Fries.

Contacting Franchisors:

Once you’ve identified potential franchises, reach out to the franchisors to request more information. This may involve attending franchise expos, visiting company websites, or contacting franchise development departments directly. Companies like Anytime Fitness and Domino’s often provide detailed information through their franchise development teams.

Reviewing the Franchise Disclosure Document (FDD):

Franchisors are legally required to provide prospective franchisees with an FDD, which contains essential information about the franchise system, including costs, obligations, and legal agreements. Take the time to review this document carefully. All our Franchisors provide comprehensive FDDs to help potential franchisees make informed decisions.

Meeting Franchise Requirements:

Franchisors have specific criteria that prospective franchisees must meet to qualify for ownership. This may include financial requirements, experience in the industry, and a commitment to uphold the brand’s standards. For example, franchisees of Hilton Hotels must meet stringent financial and operational criteria.

Signing the Franchise Agreement:

If both parties are satisfied with the terms, the next step is to sign the franchise agreement. This legally binding contract contains the rights and obligations of both the franchisor and the franchisee.  You need to employ a qualified franchise solicitor to review your Franchise Agreement before you sign it.  

Paying the Franchise Fee:

Upon signing the agreement, the franchisee is typically required to pay a franchise fee. This fee grants the franchisee the right to use the franchisor’s brand and operational system.

Training and Support:

Franchisors provide comprehensive training and ongoing support to franchisees to ensure they are equipped with the knowledge and skills needed to run a successful business. This may include initial training programs, operational support, and marketing assistance. Brands like Chez Vava and Maki & Ramen provide extensive training to their franchisees.

Setting Up the Business:

With the franchisor’s guidance, the franchisee sets up their business following the established format and guidelines. This may involve finding a suitable location, purchasing equipment, and hiring staff. 

Launch and Operation:

Once the business is set up, it’s time to launch! Franchisees follow the operating procedures provided by the franchisor and work to grow their business while adhering to brand standards.