What's Next After Buying a Franchise?

After You Buy a Franchise...

After the checks have been issued and the legal documents officially signed and transferred to your name, you are finally a proud owner of a franchise business. It might be a mobile business, a retail store, a computer consulting operation, or a daycare center. You have been waiting and preparing for this very moment and now that you have found the right business to own, you are ready to run the business.

Franchise Opening Steps

There are tasks that you need to complete after you buy your franchise. These are grouped into five steps. These succeeding steps after buying franchise are explained in detail below:

1. Set up your franchise location - Most franchises, particularly the ones focused on general retail need a location from which they can effectively operate. This location can be a single unit in a strip mall or a stand-alone building. Even mobile franchise businesses such as home decorating consultant or auto repair services, require a location for operations, regardless if it is merely a sectioned part of your home garage. You may need to purchase or lease a building if the franchise you bought requires a storefront. Franchisors can be very valuable when you are starting off and establishing your business. Most franchisors have their own real estate experts to help you get the best location for your franchise. These experts can assist in lease negotiations, and help with remodeling or building the location. Even if you are running a franchise business from home, the franchisor can offer suggestions such as the appropriate square footage you will need for a management area, as well as the best layout for inventory and equipment storage.

2. Attend franchise training programs - Training may last for weeks or a month, depending on the nature of your franchise and the complexity of your business. Almost all training programs are conducted at the parent company's main headquarters. In these training sessions, you will learn a lot: from day-to-day operational methods to various tricks of the trade. These usually include classroom time to review merchandising and marketing elements, as well as basic accounting procedures. Take advantage of this opportunity to learn more about owning a franchise and how to operate it successfully. Further assistance is also provided once your business location is ready and operational. This is called onsite training, where staff from the parent company will work at your store to mentor employees for the first few months of business.

3. Implement your spending plan - By the time you sign the purchase agreement, you have probably paid the franchise fee already. There are other financial responsibilities you need to fulfill before you can start operating. While you have listed your financial obligations in advance, the time between your actual purchasing and opening day is the period when you'll be spending a lot of money. There is equipment to purchase, advertising and marketing methods to arrange, as well as supplies to stock up. Even if the franchisor shoulders some of these expenses as part of the franchise agreement, everything is expected to cost more and take longer than expected. Be prepared for delays and be sure to plan efficiently, for the pre-opening ritual can cause stress and anxiety.

4. Hire your staff - You need to find and hire employees, unless of course you want to run your franchise by yourself. Almost all franchisors have specific hiring processes that franchisees need to follow. These include standard help-wanted language and employment forms, which are designed by the home office. Follow these steps accordingly to avoid violating employment laws. This is very important especially if you have never owned or run a business before. Determining what questions you need to ask and what criteria are appropriate to choose an employee will surely help you avoid legal issues.

5. Properly train employees - As a new franchisee, you need to train workers and pass on to them all the things you learned from the training programs you attended at the parent company's home office. You may assign an employee as an assistant manager who will take over during your absence. Make sure all employees know the business' services and products. Remember that the more they know about your company, the better they can serve your customers.