Franchising, as a business model, has been an extremely successful way of combining a desire for independent ownership, with the trusted methods of an already established corporation. This manner of carrying out business can be applied to a variety of sectors, which makes it a viable option for most businesses in multiple industries. With over 3000 franchise brands, the method obviously holds appeal on both ends of the spectrum — for the franchiser and franchisee.
In franchising, the corporation sells the license of their brand to an independent owner in order for them to use such trademarks for their own business endeavours. The franchisee invests into a formula and process that has been authorized and established by the franchiser and must be carried out in specific detail in order to legally abide by the agreement.
The International Franchise Association defines this method of business as such, ‘Franchising is a method of distributing products or services. At least two levels of people are involved in a franchise system: 1) the franchisor, who lends his trademark or trade name and a business system; and 2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system.”
As you come to the decision that you’d like to participate in the booming world of franchising, there are a few first steps that are important to take.
Research Financing Options
In the ever shifting economic state, things change fast and furiously. Take a look into stable financing options that are affordable and generally safe.
Look Into the Industry
By examining the Entrepreneur Franchise 500 list offered online and in print, you can begin to get an idea as to what specific realm of franchising interests you. Assessing your natural inclinations and realizing what you are drawn to at first glance will give you a broad understanding of a franchise industry that could work for you.
Examine the Details
After you identify a few specific companies that appeal to you under the categories that you have determined, it’s time to gather more detailed information. This can be accomplished by contacting the individual franchisors and requesting information they may have in the form of brochures, videos or other forms of distribution.
Next, after deep research in the franchise materials, it’s important to familiarize yourself with the finer details of the franchise disclosure document (FDD), which outlines further details and includes the contract that you will have to sign. Make sure to ask questions along the way if they arise.
Visit the Boss
Once all the different aspects of a particular franchise have been evaluated on your end, it’s a great time to visit the franchise headquarters. This is an opportunity to acquaint yourself with the actual individuals who will help you get started – and support you long-term — with your new franchise. Additionally, this visit will help to confirm that both you (as the franchisee) and the franchiser are completely confident in the arrangement and everything is in order to get off the ground. Once all these steps have been completed and all seems to be in order, it is finally time to sign the agreement and get started running your succesful franchise!
About FranNet Canada
FranNet is a 29-year-old company with roots in the U.S. Its purpose being to nurture every entrepreneur’s dream of business ownership. We actively employ a specific profiling and consultation method. This method is geared to each investor with a specific business model and based on franchise trends typically found in Toronto, Ontario, Vancouver, British Columbia, or Calgary, Alberta. The most lucrative Canadian franchise opportunities are waiting for you. For more details visit – http://frannet.ca/buy-a-franchise/canada-franchise-buying-process/