Franchising - The first steps

I’VE BOUGHT A FRANCHISE. NOW WHAT?

Once you’ve taken the plunge into buying a franchise, you’ll want to get off on the right foot.

So you’ve bought your franchise and are ready to get started. Before you open the doors and start welcoming customers, you’ll need to have everything ready to go. New franchisees will usually have a lot of help for their Franchisers, but it’s good to be ready for what is coming. From training your employees to securing a location and mastering the skills you’ll need to manage the business, there are a lot of preparatory steps. These things take time and effort, and all of them must be completed before you can actually start doing business. Here is a list of some of the steps you’ll have to take, and issues you’ll need to be ready for when you are getting set to open the doors of your new franchise:

1. Training. A new franchise owner will have to know everything about their business, and be able to train new employees as well. Along with training manuals, tests, certifications and other related material, be prepared to learn a lot about a range of subjects. Everything from marketing to business procedures will need to be learned by you and your staff, and you’ll want to be able to complete everything on schedule.

2. Get your financing ready. If you haven’t already done so by the time you’ve signed your franchise agreement, securing funding is the most important step you need to take. Make sure you get your check to the franchisers on time and have the appropriate documentation in order. Nothing is worse than committing to paying your franchiser and ending up with a late payment. Not a good way to start a business relationship.

3. Secure the location. Like financing, your business location should be scouted out well in advance and ready to move into as soon as you can manage. The sooner you occupy the space the sooner you can begin any needed construction or other preparations. You’ll need a base of operations, but to make it complete you may have to find contractors to install fixtures or equipment, interview potential employees and train them in your space. It is quite common that new locations require significant set-up times, so the earlier you start, the better.

4. Keep the franchiser informed. Your franchiser will probably want to keep tabs on your progress, so communicating with them in the early stages is very important. It is so important, that most franchise organizations require new owners to make regular status reports. You’ll have to be ready to keep detailed records of everything you do, how you progress and where things stand. The franchiser will also probably advise you about the process as a whole, meaning they’ll tell you what items will take the longest and what should be done before other efforts are begun.