When you franchise a company, you get the rights to use that company’s name, brand and products in your business. Franchising is how many fast-food restaurants, retail stores, gyms and other service companies end up having locations in nearly every state. One advantage of franchising a known company over starting your own business is you do not have to spend start-up time establishing a name for yourself as the franchising company name has already earned a reputation.
Instructions
1. Build your net worth. While some companies that franchise have fairly low franchising costs, such as Curves, which charges a little less than $25,000 to franchise the company name, along with a small equipment fee, other companies require far more substantial financial backing. McDonald’s, for instance, requires franchisees to have a net worth of $500,000.
2. Apply to become a franchisee with the company who owns the franchise that you want to start. Companies handle franchisee applications in different ways. Curves, for instance, provides an online "Learn More" section that tells you determine if you are eligible to apply for a Curves franchise, but you must request an application through the website (see Resources.) McDonald’s, however, provides a franchise application directly on the company website (see Resources.)
3. Find a retail space that can accommodate your franchise. The website of the company that you would like to franchise may state the amount of space you need to open a franchise. Some companies, however, only provide this information in your franchising packet once you have been approved.
4. Sign a franchise agreement with a franchising company. The franchise agreement with any company gives you the rights to use the company’s name, trademarked products and logos, and, in the case of restaurants, be given access to their secret recipes.
5. Make any changes to the building that you lease or buy for your franchise to meet the standards of the company as outlined in the franchising packet. Some companies require a certain amount of space or a specific shape to the building. Internal equipment, such as weight machines or appliances, are generally supplied by the franchiser.
6. Attend any mandatory training sessions held by the franchiser. Most major companies require at least some training of franchisees to ensure quality control of the products sold in their franchises and that the franchisee adheres to company guidelines.
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