Buy Your Own Business
Buy Your Own Business
Achieve Your Goals and Dreams of Business Ownership through Franchising

The Process to Success Finding the Right Franchise


The Buy Your Own Business process can be separated into 10 easy steps

(Click on each step below to open contents)

Step 1: The Initial Contact

Franchise Resources will spend time answering all 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 Buy Your Own Business 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 Buy Your Own Business Consultant will provide you with the Client Profile. This profile will provide the Consultant with additional information needed to find the best franchises to present to you.


The Client Profile includes financial questions. The franchise companies require that your Consultant provide them with qualified prospects, and this includes being qualified financially. The financial questions will also ensure that your Consultant doesn’t waste your time showing you franchises where you don"t meet the franchisor's qualifications.


The more complete and accurate information provided to Buy Your Own Business, the better selection of quality franchises the Consultants will be able to introduce to you.

 

Another significant advantage of completing the 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 Buy Your Own Business Client Profile, therefor, you may not have fill out several different questionnaires with redundant information.

STEP 4 – Research (Matching)

Once the Buy Your Own Business Consultant receives the completed Client Profile, they can begin researching franchises for you. Given that you have provided detailed information, the Buy Your Own Business 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. Your Consultant has access to the Buy Your Own Business proprietary database of franchise companies. Therefore, the Consultant can quickly filter out franchises that do not match your requirements. Your Buy Your Own Business 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 Buy Your Own Business 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 Buy Your Own Business Confidential Questionnaire. You should let the Buy Your Own Business 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 Buy Your Own Business 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 Buy Your Own Business 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)

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 Franchisor 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 Buy Your Own Business 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 buy your own business!