More and more, women are discovering that franchising is a great way to become a business owner. Whether your background is banking or baking, marketing or mothering, you’ve probably developed a set of skills that will translate to any number of franchise opportunities. And, because a franchisor will provide you with the systems, operations and training, you can make a complete career change without starting at the bottom and working your way up!
But how do you find the franchise opportunity that is right for you? With several thousand franchised businesses in the U.S., your options are nearly limitless. But don’t despair – here’s a list of steps you can take to narrow the choices to a few that really match your needs, skills, personality and aspirations.
ONE
The first step to finding that perfect franchised business is to take a serious look at what you, the potential franchisee, will be able to offer.
1. What skills, experience and interests do you have?
2. How much money can you invest and how much would you like to make?
3. Are you comfortable managing others or would you prefer to work alone?
4. Where do you want to work? Are you willing to relocate?
5. What hours are you willing to work and what lifestyle expectations do you have after the business is established?
6. How do you feel about selling and the sales process?
7. What do you feel to be your strengths and weaknesses in business?
Make a list of your answers to all of these questions and then use this as a guide as you do your research. This will help you quickly eliminate those businesses that just don’t fit and help you stay focused on what is important to you.
TWO
Now you are ready to begin doing some serious searching. Start with item 1 on your list and think about your talents and interests. Do you love working with children? There are a plethora of wonderful franchises that enhance the lives of children and help their parents – everything from baby aerobics to teen tutoring. Is travel your passion? Why not consider a travel franchise?
Did you slurp a delightful fruit smoothie while on vacation but can’t find the same brand in your neighborhood? Maybe that’s the business you’ve been looking for. And don’t overlook service businesses – they can offer high profits for a low investment.
Another source to get you started is a franchise advertising website, such as Bison.com. These sites often have the franchise companies organized by category to help you narrow your search and usually list the basic financial requirements of the business and the type of franchisee they are looking for.
THREE
At this point you have found a number of franchise companies that look promising and you’ve compared the information available on their web sites against your list. Your next step is to contact these companies and request their UFOC (Uniform Franchise Offering Circular, a document every franchise in the United States is required to provide) and then to review it carefully.
The UFOC will tell you the history of the company, the training and marketing programs, and what costs, royalties and fees you will be required to pay. Some franchisors also provide earnings claims in the UFOC that will help you estimate the potential of the business.
Franchise companies are required to revise and file their UFOC yearly and whenever major changes are made so the information is usually very current. By paying attention to what you discover in a company’s UFOC, you can weed out franchises that just don’t measure up. Some warning signs of a franchise that is facing challenges are extensive litigation with franchisees or a closing rate of units greater than what’s being opened.
FOUR
CALL EXISTING FRANCHISEES! Step four is crucial to your understanding of how the franchisor works with its franchisees. This is not a step you can skip or do haphazardly. Contact information for existing franchisees is available in the UFOC and it’s a good idea to make a list of the questions you will be asking before you make the calls.
Existing franchisees are your best source of information for finding out what really happens in a business on a day-to-day basis. You can ask what they like and dislike about the business and if they are happy with corporate support. They may be able to give you ideas about what they’d do differently if they were starting their business again and even give you a feel for the type of earnings their franchise makes.
Gather a variety of opinions from franchisees in different areas of the country and particularly any franchisees in areas similar to the one you are in. These calls should give you a clear idea of how the franchisor helps a franchisee during the start-up phase, how the franchisee feels about the training and support provided and a better idea of the business culture of the franchisor.
FIVE
Hopefully you’ve now found one or several companies that will meet your needs.
When you’ve made it this far, it’s time to go to Discovery Day (an on-site meeting with a franchisor). At this meeting you will be introduced to the top people in the home office and you may make a visit to a local franchisee, allowing you to ask even more questions and maybe to get some hands-on experience with the business.
Discovery Days are very interesting and exciting. When you leave, you will have a good understanding of the franchise. Don’t forget that this is a two-way street. They’ll be evaluating you as thoroughly as you evaluate their business.
SIX
Your last step is both exciting and terrifying at the same time: you need to make a decision. If you have followed all the steps and have been very honest with your self-evaluation and research, you should have confidence that you are making the right decision. Be aware that fear is a normal reaction to new experiences – just don’t let it stop you from achieving your dreams.
Congratulations – you’re ready to be a franchisee!
Kimberley Ellis is the President of Bison.com, a leading online resource for franchise and business opportunities. She has been quoted as an industry expert in USA Today, Wall Street Journal and a variety of local and regional publications regarding trends in business and franchising. Kim combines her entrepreneurial spirit with a diverse background in marketing and operation to help others succeed in franchising.
