HOW TO BECOME A FRANCHISE OWNER IN 2023: THE ULTIMATE GUIDE

Wondering how to become a franchise owner in 2023? Here’s what to look for in a new franchise opportunity, including the top franchise industries for the upcoming year.

THE BASICS OF BEING A FRANCHISE OWNER

In essence, a franchise owner is a small business owner who purchases the rights to operate within the framework of an existing brand, including access to its trademarks, business model, and other proprietary knowledge that make the company unique. Franchisees are self-starters who know how to be proactive and communicate effectively with both their franchisors and the staff they manage within their role as leaders. The success of an overall franchise is dependent on the enthusiasm and participation of each individual owner. The responsibilities of a franchisee vary slightly from that of an independent business owner, but the benefits can be exponential.

While there is a certain appeal to going it on your own, it can be daunting to establish yourself and attract business without a system of support and the benefit of immediate brand recognition. Presently, more and more savvy entrepreneurs are turning to franchising to make their mark and secure their future.

DO THE RESEARCH

Even if there is an established brand you have in mind when considering how to become a franchise owner, you’ll still need to do your due diligence to make sure it’s the right fit for you. While studies show that franchises have a higher success rate than independent businesses, it’s still a massive enterprise that shouldn’t be taken lightly. Here are some questions to consider when conducting your research:

• Is the franchise successful? Not all franchise businesses survive. Look into the most and least successful brands, as well as the elements that got them to where they are. Speak to other franchisees within the brand to learn about their experiences.
• Are your finances in order? Depending on the industry and the brand, you may be required to make a significant financial investment to open a new business, as well as have cash on hand to support your startup endeavors. If you find yourself needing support, SBA lenders look favorably upon franchise owners and can help with things like purchasing real estate, working capital, and more for qualified candidates.
• Do you have the right location? Depending on the industry and model you are interested in, be sure to find the perfect location for your business type. Conduct research on traffic patterns, nearby competition, parking capabilities, and area growth that may affect your business in the coming years. Experienced franchise systems are going to support your real estate search, often partnering with successful vendors to help conduct market analysis, guide a local broker, and assist with strong lease negotiations.
• Is your heart in it? Any new business requires a substantial amount of time and financial commitment, so be sure to choose a franchising path that aligns with your beliefs and values and can fuel your desire to succeed.

TAKE THE STEPS

Once you’ve done your research and decided on the right franchisor, you should take the steps to inquire and apply to the franchisor. Once approved, you will need to establish a business entity (like an LLC), obtain any necessary financing, and attend Discovery Day and training sessions to familiarize you with their particular business model and practices.

The franchisor’s Franchise Disclosure Document (FDD) will include up-to-date financial information, including the startup and ongoing fees you will be asked to contribute. It will also include other information about what is expected from you as a franchisee as well as the responsibilities of the franchisor. Obtaining this information won’t obligate you to sign an agreement, but it will help inform your final decision.

Discovery Day gives you a chance to meet your franchisors and prospective fellow franchisees, ask questions, and learn more about the culture of the brand.

Once you’re ready to sign the Franchise Agreement, the contract between you and the franchisor, you should be clear about all of the expectations and requirements and be excited about your decision.

FRANCHISE WITH AMERICAN FAMILY CARE

As the nation’s leading urgent care franchise, American Family Care (AFC) has a winning business model and ample territories in the essential healthcare industry to offer incredible franchising opportunities in 2023 and beyond.

To learn more about becoming an AFC franchise owner, apply now.