Completing a franchise application marks an important turning point in your franchise journey – you are no longer researching your options, but are taking action to make your entrepreneurial dreams a reality.
But just what can you expect from the application process and what happens next?
Final Self Assessment
To increase your chances of making a successful franchise application, take this time to consider your franchise readiness. Be brutally honest with yourself – are you ready to invest in a franchise? Applying at the right time will set the foundation for a prosperous and rewarding franchise journey.
You’ll need to consider your finances, leadership and management skills, industry knowledge, personal motivations and goals, and knowledge of the franchise model.
Applying before having a good handle on these core factors will make you seem underprepared and a less attractive prospect for franchisors.
Submit Your Initial Application Online
Once you’re confident you have the necessary requirements to become a franchisee at your chosen franchise, you can fill in the initial franchise lead form. Most franchisors’ websites will have easily accessible online application forms where you can submit your details.
At this stage, the application serves as a screening tool to help franchisors check that you understand what you’re applying for and are a legitimate candidate. Here, you have a chance to talk about yourself, your background and interest in the role – similar to a regular job application.
Online form submissions provide a way to register your interest and open the door for direct communication with the franchisor; you should not expect to sign any agreements or pay any fees at this early point.
What is Included in an Initial Franchise Application?
Application forms will differ depending on the brand and type of franchise; however, you can usually expect the initial form to cover a few basic factors.
Most applications will ask about your finances to assess whether you are a suitable candidate. You may have to confirm you can meet the minimum investment level.
The form may also ask you to consider the preferred location and ideal time frame for your franchise so the franchisor can assess how your goals fit within their wider strategy.
It is also a given that you will have to provide details about yourself, including passions, experience, goals and anything else you want the franchisor to know.
How to Complete an Online Franchise Application
The initial application process is usually very simple, especially if you are filling in an online form. In most cases, the application will be a combination of tick boxes where you click the option that applies to you, alongside the opportunity to write a more extensive description of yourself, your experience, finances and business goals.
It can help to be as detailed as possible here as it serves as your introduction to the franchisor. Before proceeding with your enquiry, they will want to know whether you’d be a good fit for the franchise and whether you meet the franchisee requirements – being upfront from the start can help speed the process along.
What Happens After Submitting Your Application?
Once submitting your application, it will undergo review to ensure you meet the basic requirements. Assuming you do, the franchise team will make contact to discuss the next steps. For most franchises, this is a quick turnaround, and you can expect to hear back from them within the next couple of business days.
The initial post-application phone call gives you the chance to ask and answer specific follow-up questions and get an understanding of what you need to do next.
Deeper Evaluation & Due Diligence
After the initial screening, there will be a more extensive evaluation of your potential as a franchisee. Franchisors may ask you to sign an NDA so they can share confidential information about the brand and budget projections. You will also likely have to provide more detailed information about your financial history.
Franchise Disclosure Document
The FDD is an incredibly important document that sets out everything a franchisee needs to know about a franchise before they decide to commit to investment. As a serious candidate, you will get access to this legal information pack to review key details about the brand and franchise opportunity.
The document includes 23 points, covering things like costs and fees, the history and affiliates of the company, financial statements and current franchisee information.
Remember, this process is not only to help the franchisor decide whether you are a good fit for them, but also to help you gather as much information as possible to make an informed decision about whether it’s the right option for you.
Formal Application Form
After being qualified, you may be asked to submit a formal application. This will be more in-depth than the initial screening form, requiring various supporting documents.
You may need to include things like:
- A business plan
- Financial statement
- Proof of funds
- Credit history
- Personal identification
- Documentation of professional experience
It can be valuable to have a professional franchise consultant look over your formal application to ensure everything is in order before submission. Good franchisors will provide a dedicated contact to answer your questions and support you during this process.
Discovery Days & In-Person Meetings
Following a successful application, franchisors may invite you to their headquarters or franchise offices for in-person meetings. You will get the chance to meet key contacts and go over the practicalities of franchise ownership.
Signing the Franchise Agreement
Once you’ve been approved by the franchisor and you’re confident it’s a good fit for you, it is finally time to sign the franchise agreement. This is the legally binding contract between the franchisee and franchisor, setting out the responsibilities and expectations for each party.
Again, franchise agreements should always be reviewed by a franchise expert or lawyer to ensure you fully understand what you are signing and can negotiate favourable terms if possible.
After signing the franchise agreement, you will also pay the upfront franchise fee to gain access to the brand’s trademarkers and business model.
Onboarding & Set-Up
Once it’s all official, you’ll start the onboarding and set-up process. This will include training and store set-up – basically everything you need to get your franchise up and running. The franchisor will offer continual support to ensure you get off to a great start.
Apply For an Esquires Coffee Franchise
If you’re interested in the ever-growing potential of coffee franchises and share the Esquires ethos, we’d love to hear from you.
Our initial online application form is simple to fill in, and once you’ve registered your interest, we’ll be in touch to chat through the next steps.
