A franchise is a business that is owned by one or two people. Franchise is the safest way of becoming a business owner. The international franchise association describes franchise as ‘method of distributing products and services involving a franchisor, who establishes the brand trade name, trademark or a business system, and franchise, who pay royalty, and initial fee for the right to start the business under the franchisor’s name and system.’ For buying a franchise, the critical part is to make time for proper research to find out which option is best for you. If you are reading this article, it is quite obvious that you desire to be your own boss and are searching for ways to purchase a franchise. So this article is entirely for you to guide you about the important aspects for purchasing a franchise.
We all know that franchise means to run a business using some or all aspects of another successful business in partnership. The franchising business results in a lot of advantages to both franchisor and franchise. Such as: low capital, rapid expansion, partnering with entrepreneurs and brand building are benefits to the franchisor. On the other hand, franchise enjoys benefits like: higher success rate, independence and easier access to capital. Are you aiming to start an education franchise in India? If yes, then you can prefer the well known and well reputed institute providing the excellent coaching about how to purchase a franchise.
Few things you should keep in mind while purchasing a franchise:
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Proper research
Before purchasing a franchise, you should spend your adequate time on conducting initial research on available franchise options in your locality. It is advisable to seek for the franchise that suits your budget, personal interest and academic qualification. Don’t take franchise research delicately. Instead, you should dedicate at least several weeks to this process. This is a crucial step for ease till the long run. After you find out the suitable opportunity, make sure to check out the eligibility criteria to know whether you are eligible or not to purchase a franchise.
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Check your financial status
If you are purchasing a franchise, it’s obvious you have to invest capital in it. The investing cost varies depending upon the type of franchise you are going to buy. Although there is less risk in buying a franchise as compared to starting an own business. Still you need to check your financial status to ensure that you have enough capital to invest and franchise and you don’t need to borrow money from the bank. Always remember that, if you choose a reputed and ethical franchise to purchase, then most probably you will make your money back in a short space of time.
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Begin application process
After you are done with your research and eligibility criteria, you can begin the application process. For this, you can pick up 2-3 companies from each category to request further information. On receiving your application, franchisors may consider a few things about you. Such as: your financial record, your background, your qualification and the reason for purchasing a franchise. If they find you genuine and capable of running a franchise, then you will receive information within a week through email or telephone.
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Give attention to franchise disclosure document
The franchisor will provide you with a franchise disclosure document that contains some relevant information regarding the franchise. Make sure to review the whole information attentively. However, if you are planning to start a coaching institute then you can invest your efforts in the well known institute proficient in providing excellent coaching in SSC CGL, SBI clerk etc.
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Disclosure time period
Besides the disclosure document, you will be given a 14 days disclosure period. This time period is requisite for franchisees to research, review and make a decision regarding if the person is suitable to run a franchise. This disclosure period will decide whether you are able to be a part of the franchise or not.
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Visit existing franchisee and franchisor
The preferred way to acquire information about franchisees is to visit the existing franchisee store. Besides this, you can also contact the franchisor to ask your queries. This way, you can observe how they are responding to your queries.
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Finalize
Once you have gone through all these phases, you can finalize the deal. You can proceed further to do paperwork and other formalities. Make sure to do your paperwork carefully. Furthermore, the next step is to choose the best place in the market and construction. In the meantime, you can get some additional training for smoother working.
Final words:
Running a franchise is the best option if you hesitate to start your own business. However, while purchasing a franchise you need to keep in mind some important points. If you are desiring to be an owner of the franchise, then we hope this article provided you with useful information.
