The Franchise Resources process can be broken down to 10 easy steps.
Step 1: The Initial Contact
Franchise Resources will spend time answering any of your questions about franchising. The Consultant will explain the benefits of working with Franchise Resources and the 10 Steps of the Franchise Resources Process. Depending on your interest and time, the Franchise Resources Consultant will conduct the interview or will set a future appointment to conduct the interview.
Step 2: The Initial Interview (Evaluation)
The Franchise Resources Consultant will conduct an interview with you in order to collect thorough information that will be used to match you with appropriate franchise opportunities. In order to present franchises that will be the most appropriate choice for you, it is imperative that you provide as much detailed information as possible.
To view a example list of questions that may be asked, CLICK HERE
STEP 3 – Complete the Franchise Resources Client Profile
The Franchise Resources Consultant will provide you with the Franchise Resources Client Profile. This profile will provide the Consultant with additional information needed to find the best franchises to present to you.
The Franchise Resources Client Profile includes a financial statement. The franchise companies require that Franchise Resources provide them qualified prospects, and this includes being qualified financially. The financial statement will also insure that the Franchise Resources Consultant doesn’t waste your time showing you franchises that you can’t afford or franchises where you do not meet the franchisors qualifications.
The more complete and accurate information provided to Franchise Resources, the better selection of quality franchises the Consultants will be able to introduce to you.
Another significant advantage of completing the Franchise Resources Client Profile is that each franchise company your Consultant introduces to you usually requires a similar questionnaire. We have contracted with most of the franchise companies to accept the Franchise Resources Client Profile, so that you may not have fill out several different questionnaires with redundant information.
STEP 4 – Research (Matching)
Once the Franchise Resources Consultant receives the completed Franchise Resources Client Profile, they can begin researching franchises for you. Given that you have provided detailed information, the Franchise Resources Consultant should be able to set an appointment to present 2-4 franchises.
There are over 3,500 franchises available, in the United States, and for you to find the right fit could take weeks. The Franchise Resources Consultant has access to the Franchise Resources proprietary database of franchise companies. Therefore the Consultant can quickly filter out franchises that do not match your requirements. Your Franchise Resources Consultant should be able to complete the search and set an appointment to present these choices in 2-3 business days.
STEP 5 – Presentation
Your Franchise Resources Consultant will present the franchise opportunities that were identified in his/her research. Please keep in mind that these franchises have met your goals and requirements that were highlighted in the interview and the Franchise Resources Confidential Questionnaire. You should let the Franchise Resources Consultant know of any reservations that you may have, but it would be best that you have an initial conversation with the franchise people before making any decisions to eliminate a choice. We have found that many times people are reluctant to go forward with a franchise because of a preconceived bias and/or lack of information. They have listened to their Consultant and discovered it was the perfect choice after all.
STEP 6 – Introduction to the Franchisor (Due Diligence)
For each of the opportunities that you have an interest, the Franchise Resources Consultant will introduce you directly to the Franchisor. The Franchisor will send materials to help you become acquainted with their franchise. They will also send the Franchise Disclosure Document (FDD), which is a document that the Federal Trade Commission (FTC) requires each franchise company to provide to individuals that are interested in their franchise. The FDD Acknowledgement of Receipt, a document that verifies that you have received the FDD, should be signed and returned to the franchise company immediately.
STEP 7 – Review of the FDD (Due Diligence)
Your next step is to read the company's FDD, a document every franchise in the United States is required to provide - per Federal Trade Commission regulations. The FDD is a disclosure document that covers a wide variety of useful information for your due diligence. (Your Franchise Resources Consultant will discuss the 23 items contained in this document).
Some franchisors also provide earnings claims in the FDD that will help you estimate the potential of the business and if it can meet your personal financial objectives.
The FDD clearly explains the responsibilities of the franchisee (you) and the franchisor. Your FDD review and understanding is a very significant part of the research process. Every FDD is structured identically so they are relatively simple to navigate, read and understand.
By paying attention to what you discover in a company's FDD, you can weed out franchises that just don't measure up. Pay particular attention to signs that a franchise has extensive litigation with franchisees.
STEP 8 – Call Franchisees (Validation)
This is a major step in deciding which franchise you should buy. Never hesitate - CALL THE FRANCHISEES! Call both current and former franchisees. A list of current and former franchisees is found in the FDD.
Interviewing the franchisees will be the best source of information on any franchise company. You can find out if they are successful and happy with the choice that they made. You can find out what they did to become successful, and if they followed the procedures provided by the franchisor. You will be able to find out how the initial training went and whether the support is adequate. If there have been any problems with the franchise company, and whether they adequately resolved. Finally, you can ask them about their sales volume, operating expenses, and profit margins.
You should not make any final decisions after only a few calls. Get a variety of opinions and you will see patterns forming. If you feel that the franchise company is one that you would like to pursue, then write down any concerns that you have heard and discuss them with your Franchise Resources Consultant and with the franchise representative.
STEP 9 – Narrow choices, consult with your Attorney, and attend Discovery Day (Due Diligence)
Your next step is to narrow down your choices and make a decision about which franchises you want to pursue. Discuss the advantages and disadvantages of each company with your Franchise Resources Consultant.
Your final selection should be discussed with your attorney, CPA or other advisers. You should visit the franchise company before making any final decision. Therefore, you should have all of your questions and concerns answered before spending the money to make the visit.
After you have all of your questions answered to your satisfaction, it's time to go to Discovery Day (an on-site meeting with a franchisor). At this meeting you will be introduced to the leadership in the company, to your trainers, and the support staff. Remember, these are the people that you are committing yourself to have a relationship with for the next 10-15 years. Also, 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.
STEP 10 - Final Decision
The last step, of course, is making the final decision. Like any major decision, you will be filled with anticipation and anxiety, excitement and fear. Those are very normal feelings, experienced by almost everyone.
But if you've done your homework and followed the steps as outlined, you should be very comfortable with your decision.
Congratulations – you've made the decision to own your own business!