How Do You Buy a Franchise?

The first and arguably most important step toward buying a franchise is identifying which brand you want to invest in. This is often discovered organically, whether it be through advertisement or personal association.

Identifying how to invest is the next step, and while the process is the same in principle, every brand is bound to do something a little differently.

Franchise investment information is often found easily on franchise development websites. Key information and investment details can be found on these sites, and instead of being curated toward prospective customers, these sites are designed for prospective franchisees.

Franchise development websites are an extremely convenient means for franchisors to collect investment inquiries, as serious offers can be sorted efficiently and effectively.

Many brands will set clear guidelines for how much a franchise costs on their franchise development website; some will set requirements for the net worth of an incoming franchisee, while others may simply call for a set amount of capital that can be poured into an initial investment.

After these details are cleared and presented, a franchisor will review a franchisee and their potential fit for the brand — just as the franchisee reviewed the brand before investing. Both parties will (ideally) develop a lasting relationship and investing partnership, so a key facet toward buying a franchise is to ensure both parties are compatible when it comes to business decision-making. This is where an interview process comes into play, as both get to know each other and their ideal business environment.

Some brands may be looking for investors willing to invest in multiple locations, while others might prioritize single-unit commitments from franchisees dedicated to one franchise. This is another key detail of the ‘interview’ process between franchisor and franchisee, as different brands and different people will have different motives when it comes to franchise ownership.

If these interactions go well, it’s time to make it official. The investment is made, the legal paperwork is drawn up and a franchise begins a construction process toward an eventual grand opening.