Investing in a franchise offers a unique opportunity to build your own business while still benefiting from the support of an established brand. So, it’s no wonder that more entrepreneurs are seeking the best ways to get into the industry.
Whether you want to reap the rewards of a coffee franchise or delve into another market, there are several key steps involved in buying a franchise and becoming a successful franchisee. Here’s how you can get started.
1. Consider Whether You Have The Right Skills
First things first, you’ll need to look at yourself objectively and assess whether you’re ready to tackle the challenge of opening a franchise. Consider how your own skills and experience will feed into your ability to become a franchisee. Are you ready to jump straight in, or will you need to take a few courses first to ensure you’re ready to manage a team and stand at the helm of a business?
It’s important that you align with all the qualities necessary to run a business before you start looking for the support of a brand.
2. Evaluate Your Financial Requirements
Assess your financial situation to determine if you have the necessary funds to invest in a franchise. This may include an initial franchise fee, startup costs and working capital. Some franchisors may also require franchisees to meet certain net worth and liquidity requirements.
3. Research Your Chosen Franchise
Another incredibly important step is beginning your research on the brand you’re thinking of joining. Consider whether your prospective franchisor shares your values and if their methods are the right fit for you. This is also a good chance to gain a more in-depth understanding of how franchising works and how you’ll function within the system.
At this early stage, you might simply be looking at various franchises to assess your options, or you may be ready to get in touch with the franchise to start asking some preliminary questions.
4. Apply For a Franchise
At this point, you may officially apply for a franchise, likely through the franchisor’s website or application portal. This puts you on the franchisor’s radar and gives you a more direct point of contact. Here, the franchisor will assess whether you meet their requirements and whether it is possible to move forward with your application.
Simply making an application does not commit you to anything, so if you still have questions, it is worth applying and seeing how the franchise team can help you.
5. Meet With Your Franchisor
Once you start getting serious about a particular franchisor, it is a good idea to arrange a meeting with them. This will provide you with the opportunity to ask more specific questions and get a feel for how franchisees are supported. You may also meet key personnel or teams who’ll liaise with you during the opening of your franchise.
6. Create a Business Plan
Before you can secure funding with your lender, you will need a business plan. This will outline how you are planning to run a profitable business and the projections for your franchise outlet.
7. Confirm & Secure Funding
Now that you are well along in your franchising journey and have settled on which franchise to invest in and drawn up a business plan, you will need to ensure you can fund the venture. Approach lenders with your business plan and ensure your projections are realistic. By now, your franchisor should have given you a detailed overview of the costs involved.
8. Review the Franchise Agreement
Some franchisors may allow for more flexibility and negotiation when it comes to the terms of the franchise agreement. Having a lawyer who specialises in franchises look over your agreement will help ensure you are getting the best deal for your situation.
9. Sign the Franchise Agreement
By now, you should be more than confident that this is the right choice for you, and you can go ahead and sign the franchise agreement. Once you’ve made it official, you can now call yourself a franchisee and start working on the practicalities of opening your business!
Becoming an Esquires Coffee Franchise
If you’re considering combining your entrepreneurial spirit with a passion for coffee, we’d love to hear from you. As a coffee franchise with decades of experience, we’ve helped numerous prospective franchisees navigate the steps to becoming fully-fledged coffee shop franchise partners.
Apply today to find out more about the opportunities available at Esquires Coffee.
