Ever wondered how KFC started in Nigeria? How Pandora got a deal to open up in Shoprite? Or how Dominos and ColdStones kicked off? Most of these international branches you see locally are franchises. For those who have no clue what a franchise is, it’s;
“An authorization granted by a government or company to an individual or group enabling them to carry out specified commercial activities, for example acting as an agent for a company’s products.”
This explains that a franchise more or less would make you an agent for the actual franchisor. Although you’re operating as an agent, running a franchise requires the same business principles that you would apply to running an ordinary business. Here are the most vital things you’ll need.
If you don’t like reading, you’re going to have to learn to love it now. Before starting up a franchise you need to research;
- The industry you want to go into
- It’s market potential
- How much it will cost
- Laws and regulations concerning the franchise
Connect with other franchise owners to now the reality of what you’re about to get yourself into. Even better, visit the potential franchise that you want to start and find out first-hand what it’s like on a day to day basis. Ask questions and take notes to avoid any surprises.
Apply to the Franchisor
Every franchisor will have a different process, but reach out and find out what you need to do to apply and ask for as much information and guidance as possible. Make sure you make a note of how flexible the franchise is, how much support they’re willing to offer, if it is going to be profitable later on, how lucrative the return on investment is and how quickly you’ll be able to recoup it.
Ensure all Legal Documents are in order
Get a copy of the legal documents including disclosure documents and the franchise agreements. Take your time to look over them and have a professional cross-check to ensure there are no clauses that will become problematic later and it favours both parties.
It is said that banks are keener on giving loans to franchises, if the franchisor is reputable. This does not relinquish the need for good credit history on your part. Check which banks give good loan deals and if borrow as much funds from family and friends as possible.
Start Your Business
After all research, funding and legal requirements have been taken care of, the only thing left for you to do is run your business! Hire the right staff, set your marketing plans in motion an get going. Keep learning and acquiring knowledge along the way.
Starting a franchise isn’t for everyone. However it takes the same determination, focus, and passion that any other business will take to be sustainable and successful. The start-up costs will be relatively robust, so to avoid losing out on your investment, it is vital that you do enough research and ensure it’s truly what you want to go into. The right franchise in the right climate at the right time could put you on the path to financial stability and abundance.