The journey to becoming a business owner is exciting…but can be overwhelming at the same time. There are a variety of options and opportunities available to you – the world is your business oyster, per se. This guide is designed to introduce you to the what it means to own a franchise, help you decide if being a part of a franchise suits your goals and personality and take you through the ins-and-outs of the journey to franchise ownership
Why become a franchise owner?
For many the idea of being your own boss by through business ownership is extremely alluring, but the thought everything you need to do in order to get started and more importantly be successful is paralyzing. I mean think about it; you would need to pick the right type of business, find a location, build out your store, pick your product offering, find suppliers, obtain equipment, market your business and build a loyal customer base. Yikes right! Well this is exactly where franchising fits in.
When you are a franchise owner you are in business for yourself, not by yourself. You have a proven system in place and a team behind you to support your success. Next time you drive around town take note of the store you see and go look up their brands, you might be surprised how many of them are actually franchises.
What will be covered in this guide?
First, we’ll cover exactly what franchising is and how it differs from independent businesses. Once we have that solid foundation, the next step is to help identify which franchise brand might be the right one for you, and the resources available to you to help make that decision. And to be extra helpful, we’ve also included a chapter of top franchise brands by category – like most successful, best low-cost brands, best franchises for veterans, etc.
The type and amount of support you’ll receive from your franchisor can differ significantly by brand, and it’s hard to know what a “good” brand offers you. Chapter 4 covers what a standard level of support looks like, to give you some context as you’re researching deeper into any brands that caught your interest. And of course, money. It’s easy to find out the costs of different brands online, but what about the fees and costs that aren’t listed on their website? We’ll give you a solid understanding of the hidden costs associated with franchise ownership, so you know what to look out for during your research.
Some of those costs will be lined out in the Franchise Disclosure Document, which is a notoriously long and complex legal document all franchises are required to give to their potential franchisees. This guide includes a chapter dedicated solely to helping you understand and demystify the FDD, so you can approach this step in your journey with confidence.
Naturally, little of this matters if you’re unable to actually purchase the franchise you have your eye on. Toward the end of this guide we’ll take a look at the most common, efficient and user-friendly business funding options available to you. You’ll come away with a good general understanding of each of those financing solutions, and we’ll point you in the direction of in-depth guides for each option.
And last but not least, this guide runs through the different entity options you can set your business up as. We cover the definition of each major entity type, personal liability protection and the nuances, pros and cons associated with each entity.
Why read this guide on becoming a franchise owner?
Overall, our goal with this guide is to set you up for success in your journey to franchise ownership. We’ll take away the veil of confusion and mystery that can surround the franchise world, help you understand your options and point you toward more resources at your disposal.