Are you about to set up a franchise or are you planning a licensing partnership with an established franchisor, but have not yet decided on a suitable brand? Selecting the right franchise system and the entire pre-opening early phase will be critical in designing your future franchise business - it will determine the extent to which your franchise operation will benefit from the partnership in the future. Engel & Völkers has presented five steps that you should look out for in the run-up to your career as a franchisee in order to set all the right course at the right time.
Step 1: Create a comprehensive information base for your franchising partnership
If you want to start a franchise business, you should, as much as possible inform yourself on the subjects of franchising, self-employment, business and opportunities and risks. You should go over all legal, economic and organizational implications in order to initiate fact-based and well-informed start-ups. It is also very helpful to understand your own goals of your franchise career. Do you primarily want to benefit from professional independence? Are your intentions in maximizing your earnings? Or do you see the challenge in a high degree of operational responsibility? Depending on your personal goals, you can find franchisors who fulfill your ambitions and offer you corresponding opportunities.
Step 2: Find a franchise system that fits your idea
Once the information base for your start-up investment has been created, you can start looking for the right franchisor. Always keep your goals in mind and systematically research suitable candidates for the franchise partnership. Above all else, the franchisor should serve your desired industry, offer you an advantageous service package, and, depending on your willingness to relocate, not demand too great a physical distance to the later license area. Do not try to disproportionately adapt to a licensee to meet its expansion criteria, but make your own preferences the deciding factor. Your long-term satisfaction as a franchisee depends on it.