Our advice for getting started in franchising
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Jul 8, 2024
Many candidates decide to embark on starting a franchise business. It is a choice that may seem on paper much less risky compared to all the advantages that arise from it. However, it is important to stay vigilant before diving into the adventure. So, do you want to get started? Qotid gives you all its advice before taking action!
Preparing to become a franchisee
Starting as a franchisee is a great experience. Nevertheless, it requires certain preparation as it is not a decision to be taken lightly. For this reason, it is better to think it through in advance.
In our article how to become a franchisee, we discussed the importance of conducting a personal evaluation, but beyond that, it is important to equip yourself with a good mindset. Being a franchisee is an adventure that may require time, a lot of energy, and involves having to make some sacrifices…
Aside from having the ambition to undertake, one must ask themselves if this model suits them considering all its advantages and disadvantages. Some testify that to become a franchisee, it is not always necessary to have experience in the chosen field, but several elements must be taken into account:
First of all, teamwork spirit and autonomy. It is primarily preferable to have a group mentality since you will be one of the ambassadors of the franchise network and will be required to integrate into it. Furthermore, autonomy is another quality to have when one wishes to embark on a franchise. One must be somewhat versatile: able to manage local communication for the brand, handle finances, and manage a team. As you understand, the franchisee is thus an independent person with a team spirit!
What other qualities are needed to become a franchisee?
Energy
When starting a project, one always shows enthusiasm. However, the enthusiasm of the first days is not enough as the workload, particularly in the first months, necessitates counting every hour.
Commitment
Being passionate and committed to your role as a franchisee also implies being supported by loved ones: family and partner. Support from loved ones and family is very important as too much personal tension can harm your project!
Dare
To become a franchisee, having a taste for risk is almost essential. This risk is, of course, measured and studied by the franchisor beforehand by evaluating the reliability of the project. Nevertheless, it is an element to consider as it can sometimes be difficult to take the plunge.
Gather as much information as possible
One of the important steps if you want to become a franchisee is to gather as much information as possible to help you initially decide if this entrepreneurial model suits you, but also to choose the sector and network that will correspond to you best. Various sources of information are available to help you in this process.
Websites
Websites are a good way to learn about franchising. Depending on the information you want, you will find already many elements to get an idea! Here are some examples:
If you are looking for a franchise, it is possible on the franchise directory of the Franchise Observatory to consult them based on the sectors you are targeting as well as your personal contributions.
You can also simply gather information through statistics. Our brand new infographic will give you the latest key figures and trends related to the world of franchising.
The French Federation of Franchising also organizes training seminars as part of the Franchise Academy. They help to understand what franchising is, as well as the role of the franchisor and the franchisee.
Finally, if you have more specific questions about franchising, it is possible to consult articles. There are many resources available on this topic!
The professional world
You can also consult different professionals and specialists of franchising in your region who will be likely to provide you with relevant and reliable information.
Do not hesitate, moreover, to meet the franchisors you are targeting: One of the best ways to contrast the franchisor’s promises with reality is to exchange ideas, so this is the time to ask all the questions you have in mind.
Meet the franchisees of the network you are interested in using the contact details available in the DIP (the pre-contractual information document that all franchisors are obliged to provide to a candidate. Ask the franchisees about the relationships they maintain with the head of the network, about the support provided, about recent innovations, about their profit and loss accounts, and the reasons that led some members of the network to leave.
The feedback received from these professionals regarding their collaboration with the network constitutes valuable information and also allows you to learn more about the strengths and weaknesses of the network, the profitability of the franchisees, their difficulties, their opinions on initial training…
Even if you are more interested in one of the brands, you should meet others to compare all the proposals. This way, you will be better equipped to judge what is offered to you and to identify the opportunities.
The trade shows
There are also trade shows dedicated to connecting franchisors/franchise candidates. Attending a franchise show allows you to meet the network facilitators. You can thus directly ask them all your questions about the brand they represent. One of the most well-known is the Franchise Expo Paris which takes place every year. At this event, conferences and workshops are on the agenda.
Social networks
A channel that is not always considered, social networks, and particularly LinkedIn, allow you to gather information through webinars or even feedback from certain entrepreneurs. It is also an opportunity to exchange with your community.
Get support
To successfully launch your franchise, it may be useful to get support at every step: during the search for a location, during financing, and sometimes even after the start-up. The use of professionals is essential to maximize your chances of success.
For the market study: The market study is essential before signing your franchise agreement. It can be carried out by yourself, but it is better to consult a specialized agency as this step can be complex, especially regarding data collection.
For the forecasts: Are you not necessarily comfortable with numbers? Prefer the support of an accountant to prepare your business forecasts. In terms of financing, platforms offer honor loans under favorable conditions that will solidify your personal contributions. Let’s not miss out!
For the administrative aspects: The administrative procedures for creating a commercial company can be quite complex. You need to draft the statutes paying particular attention to certain clauses, publish a legal announcement with mandatory mentions, submit a complete creation file to the commercial court registry under threat of rejection, etc. If you feel that you lack all these skills, it is possible to call upon a notary or a lawyer. This will allow you to provide a secure legal framework for your activity.
Your loved ones: Share your project with those around you! Transitioning from salaried work to entrepreneurship implies a change in mentality and often in lifestyle; it is essential that your close circle supports your project and you.
In summary:
Becoming a franchisee requires preparation and prior reflection. It is important to conduct a personal evaluation, equip yourself with a good mindset, and gather as much information as possible about franchising and the chosen sector. The qualities required to become a franchisee include teamwork spirit, autonomy, energy, commitment, and daring.
To gather information, it is possible to consult websites, franchise professionals, trade shows, and social networks. Getting support from professionals can also be useful to successfully launch your franchise.
F.A.Q:
1. What is a franchise agreement?
A franchise agreement is a contract between a franchisor and a franchisee, in which the franchisor grants the franchisee the right to use its brand, know-how, and business model to operate a business under the franchisor's brand.
2. How to conduct a personal evaluation to become a franchisee?
To conduct a personal evaluation, it is important to focus on two axes: the human axis and the business axis. The human axis involves assessing your skills and motivations for becoming a franchisee, while the business axis involves determining in which sectors of activity you have the most affinity to successfully carry out your project.
3. How to gather information about franchising and the chosen sector?
It is possible to gather information about franchising and the chosen sector by consulting websites, franchise professionals, trade shows, and social networks. Websites can provide information about available franchises, sector statistics, and latest trends. Franchise professionals can provide reliable and relevant information, while trade shows allow you to meet network facilitators and ask questions about the brand they represent. Social networks can also provide feedback and webinars.
