Six Things To Do Before Buying A Franchise

How to Prepare For Becoming a Franchisee

Starting a franchise business is a big endeavour that requires extensive preparation before you can open your doors. From getting approval from the franchisor to hiring your staff and setting up operations, getting the business ready is a huge task that requires many steps before the business can be operational.

However, before you even purchase the franchise and get started on the preparation, there are additional things you will need to do to get yourself ready for this big step.

In this article, we will go over all of the things that you, a prospective franchise operator, will need to do to get yourself ready to buy a franchise.

Keep reading to find out what they are.

Talk to Other Franchisees

If you have never owned a franchise before, one of the best ways to get a better understanding of the role of a franchise operator and what the responsibilities are is by speaking with other franchisees.

A franchisee will be able to give you a first-hand perspective on what owning a franchise is like. You can even see if someone would be willing to be your mentor and let you shadow them.

Then, once you have chosen the franchise you want to buy, reach out to other business owners working with the same franchisor to get their perspective on what the franchisor is like when it comes to communication, training, support, and marketing. If other franchise operators are happy with their franchisor, this is a good sign that you are investing in the right franchise.

Have the Funds to Cover Startup Costs

Starting a business requires a huge financial investment, and buying a franchise is no different. While the startup costs required for buying a franchise are lower than most other businesses, it can still be a huge financial burden. Depending on the franchise, you can expect to pay anywhere between $10,000 and $100,000 in startup costs.
If you don’t have the money to cover these costs upfront, you will need to contact your financial institution and apply for a business loan. Fortunately, financial institutions are typically more willing to provide franchisees with business loans than other types of business owners, as there is less risk associated with buying a franchise.

Decide What Type of Franchise You Want to Work With

If you don’t already know which exact franchise you want to buy into, you’ll need to do a lot of research and consider what areas interest you most and what you are passionate about. When choosing a franchisor, it’s important that their values line up with your own, and that it’s a business you feel passionate about. As a franchise owner, you need to be your business’s biggest cheerleader, and if you’re not emotionally invested, it will be evident to both your team and your customers.

Of course, there are other factors that come into play, like how much training and support the franchisor offers, how much you’ll need to pay in franchise fees, and more.

Research the Franchisor You Want to Invest In

Once you have decided on a franchisor, you’ll need to do lots of research to make sure that they are the right company to partner with.

Talk to other franchisees to get their thoughts and do your research to figure out the following information:

What are the franchisor’s business record and reputation like?
Has the franchisor been involved in multiple lawsuits?
How many years has the franchisor been in business?
How many franchisees are there and how many have been successful?
How many franchisees have closed their doors before the end of their franchise term?
What are the terms of the franchise agreement?
How many years is a franchise term?
Any other relevant information that will help you make your decision

Figure Out Where You Want Your Franchise to Be and If There Is Enough Demand

Having the right location is incredibly important when buying a franchise, as many franchisors won’t allow there to be multiple franchises within a certain radius. It’s also important to understand the demographics in the area you want to put your franchise in to make sure it will generate enough business to be profitable.

Also, research your target audience and try to determine whether there is enough demand in that area for your type of franchise.

Get Approval From The Franchisor

Buying a franchise is not as simple as walking down to the franchisor’s headquarters and handing them a cheque. Many franchisors have a strict selection process and carefully vet all prospective franchisees to ensure they are a good fit for the brand. This process is extensive and can take months, or sometimes up to a year.

Throughout the approval process, the franchisor will need to approve your desired location and determine whether they feel you are financially ready to be a franchisee and have enough business acumen to be successful. If they feel you would be a good fit, they will approve you to open your franchise and you can move forward with the next steps.

Why Gorilla Bins is Ontario’s Best Franchise For New Franchisees

If you are considering investing in a franchise but haven’t yet found the right franchisor to invest in, consider partnering with Gorilla Bins.

Gorilla Bins is Ontario’s leading waste management franchisor with several locations across the Greater Toronto Area.
Gorilla Bins offers its franchisees lots of training and support to help them be successful. We also have a track record of producing successful franchisees and have tripled our revenue over the past five years.
Get in touch with our team today to learn more about Gorilla Bins and how we can help set your franchise up for success.