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Relating to franchise possession, a typical false impression is that potential franchisees are “shopping for themselves a job.” In any case, do not you simply want the startup capital and an inventory of manufacturers to select from? Not fairly.
In fact you want to have the ability to finance your new enterprise — however this is not distinctive to franchising. Monetary backing is required for any enterprise enterprise. However franchising, as a enterprise mannequin, requires greater than startup capital. It requires a mutually helpful match between the franchisee and the franchisor. Actually, when you discover a possibility for which the solely prerequisite is startup capital, that is a purple flag and you must rethink whether or not it’s in your greatest curiosity to signal with that model.
Let’s look at methods to current your self to a possible franchisor all through the assorted steps of the franchise journey.
Associated: Contemplating franchise possession? Get began now to seek out your customized record of franchises that match your way of life, pursuits and price range.
The franchisee journey
The franchisee journey is not nearly writing a examine — it is a multi-step course of designed to make sure alignment, transparency, and long-term success for either side. Whereas franchising presents a transparent enterprise mannequin and built-in assist, choosing the proper model (and being chosen by the model in return) requires considerate due diligence.
Out of your first name with a franchisor to Discovery Day at headquarters, every stage is an opportunity to ask essential questions, assess compatibility, and decide whether or not the chance suits your targets, values, and expectations. Sometimes, the potential franchisee journey will encompass, at a minimal, the next steps:
- Overview name: An introductory name with the model to make preliminary introductions and decide a broad match.
- Unit economics: A breakdown of the financials. What you’ll be able to realistically count on from this partnership.
- FDD Evaluate: The FDD (Franchise Disclosure Doc) is a authorized doc offered by the franchisor to a potential franchisee consisting of 23 sections which define firm historical past, charges and prices, contractual obligations and unit knowledge amongst different necessary data.
- Territory Mapping: An exploration in regards to the geographical areas the place a franchisor grants a franchisee unique rights to function their enterprise.
- Discovery Day: Remaining step within the course of through which the franchisee visits the franchisor headquarters to substantiate mutual suits by way of tradition, imaginative and prescient, CEO — large image stuff.
These steps are designed to be mutually revealing. All through this course of, it is necessary that each you, because the potential franchisee, have an opportunity to look below the hood of the mum or dad firm, or franchisor, simply as a lot because it’s necessary for the franchisor to evaluate your credentials and {qualifications} to change into part of their franchise model.
Associated: 4 Issues I Want I Knew Earlier than Beginning My Franchise Journey
Getting ready for Discovery Day
After getting accomplished the due diligence course of and have chosen a model that you’re significantly contemplating for franchise possession, it is time for Discovery Day, or because it’s generally referred to as, Affirmation Day or Meet The Group Day. As talked about above, Discovery Day is when a potential franchisee visits a franchisor’s headquarters to take a look at the enterprise and its operations. In the end, that is the ultimate cease earlier than the rubber meets the highway and remaining choices have to be made.
As a franchise advisor, I’ve seen some ways this remaining step within the course of can go. I’ve labored with candidates who’ve soared by way of with flying colours and made an ideal match, I’ve seen candidates who had respectable issues about mutual match and opted for an additional model, and I’ve had candidates who’ve completely bombed the assembly and burned bridges on their approach out the door. Belief me, you do not need to fall into the final class.
That is why I coach candidates that, when you attend Discovery Day, then try to be 90% assured that you will signal. At this level, you have all however finalized that that is the model. At the present time ought to be validation of a call you have already made, you are solely on the lookout for purple flags or cultural match. I usually inform candidates, if you do not have sufficient data to decide once you go to Discovery Day, then we have failed within the course of.
Franchises are relationship centric, which is why it is necessary to place your greatest foot ahead when discussing a possibility with a possible future franchisor – particularly on Discovery Day. It needs to be a mutual match. The way in which to consider it’s a partnership – each events go into it as a result of they suppose the opposite social gathering brings one thing to the desk that can result in optimistic mutual outcomes.
So methods to current your self to the potential franchisor?
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Deal with it like a job interview
To illustrate you are interviewing for 3-4 completely different jobs. These are positions that you just’re a minimum of fascinated with. Chances are you’ll not know which job you need, however you do not need to be rejected. In any case, it is all the time higher to be working from a place of a number of choices versus settling for “ok.” You all the time need the job supply. It is not like shopping for a automotive – it is a ten 12 months relationship you are going into – at a minimal.
That is precisely how I coach my candidates to current themselves to the franchisor all through this franchisee journey. It is crucial that you do not stroll into these conferences, and particularly the Discovery Day room, considering: “I am shopping for the model and they should promote me.” You must be a great associate too.
From the primary contact, the franchisor is on the lookout for people who find themselves enthusiastic about their model. This wants to increase past the numbers, you should be enthusiastic about that enterprise alternative with that individual model. You’re greater than the spreadsheet. Your conduct within the course of is essential. They need to see you engaged and excited as a trusted model ambassador.
So take the chance. Community deliberately with the manager staff, make precious connections, put your greatest foot ahead and make strategic choices about your future from a place of choices versus shortage.
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