6 Things Franchisors Wish Prospects Would Know About Buying a Franchise

Becoming a franchisee is a big commitment. You’ve decided take on a franchisor’s business model and introduce it to your own community. How do you show the franchisor that you are the best fit for their franchise? You want to make sure you’re making the best impression from the first contact in order to be seen as a quality franchise partner. There are some important factors to keep in mind while you’re in discussions with franchisors that may not be obvious. 1851 Franchise spoke with industry experts who shared their insider tips for making the best impression on your future franchisor.

1. Pick Up the Phone

Everyday franchisors receive hundreds of inquiries requesting information about their franchise. How do you break through the clutter? Theresa Huszka, CFE and Senior Consultant at MSA Worldwide, says there is no better way to get in contact with a franchisor than to pick up the phone. “Picking up the phone and making that personal connection shows you’re serious.” She continued, “These personal connections help you stand out and show that you are genuinely interested in engaging with a franchisor.”

2. It Needs to Be a Good Fit for Both Parties

Sharon Peterson, VP of Franchise Recruitment & Development at Best in Class Education, shared, “I believe that is it critical for potential franchise owners to understand it is an exploration process for both parties, both the franchisor and the potential franchise owner. We have an engaging exploration process to help our clients determine if they can see themselves as a franchisee. We are searching for people who share our mission, core values, and passion for education. It is important for the franchisor and the client to make sure it is a perfect match.”

3. Meet Your Deadlines

Franchises are built on a system. These systems are why the industry was expected to increase by 5.2 percent in 2017 with $426 billion in revenue according to CNBC. Once you have committed to a franchise, there are procedures for you to follow. These procedures are in place to give you a chance to show the franchisor how well you work in a system. If you begin to miss deadlines, you are showing a franchisor that you are unreliable. The franchisor will begin to question if you will be able to place ads on time, if you will meet financial deadlines and if you will complete orders on time. Someone who can’t meet deadlines will potentially have a negative impact on the company, therefore will not be the ideal candidate in the eyes of a franchisor. 

4. Understand Your Finances

If you have already chosen to speak with a franchisor, it is likely that you have reviewed your finances and decided what type of concept you can afford. But it is important to be over prepared. According to Peterson, “Many clients wait until they've found the perfect franchise or are further in their exploration before they consider what is the best way for them to fund their new business venture. I highly encourage in the beginning of the process to speak with lenders who specialize in franchise funding so that it won't hinder the opening of their new business venture.”

5. Commit to a Final Deadline

Franchisors also want to know that you’re serious. Peterson shared, “It is important to understand the timeframe of the exploration process as well as having a strong understanding of the typical timeframe it takes to open your new business venture. During our initial call we discuss what your goal for launching your new business is so that we can make sure we are working closely together to achieve this goal.”

Huszka agrees, “A franchisor really doesn’t want to engage if you’re 12-18 months out. You should be 3-6 months out to make the transition so you can effectively get through that qualification process.” She continued, “You should also be mindful that Franchise Disclosure Documents (FDD) change on an annual basis, you never what changes can be made in that time.”

6. Ask Questions

Franchisors know you don’t know everything. Ask questions. Be curious. All franchisees have made mistakes in the past, but if you are too afraid to ask questions, you might make the same mistakes instead of learning from those who came before you. The only way to be successful is to know you don’t know all the answers.

Franchisors know how large of a commitment purchasing a franchise is. They also want to make sure they make the right choice in franchisees so they can ensure continued success of their brand. If you do your research and follow the process, you’re sure to be a top prospect in the eyes of franchisors!