A franchise is an alternative business model to traditional formulas. If you've come this far, it's because you find it to be an attractive model and you're wondering: “I want to open a franchise, where do I begin?”
Its multiple advantages, together with the possibility of finding profitable franchises with low investment, make this option an attractive one for many entrepreneurs to start up their own business.
How to start a franchise: steps to follow
To answer your question, starting a franchise is not complicated. Mainly, because you' ll be working with a well-known and consolidated company, with experience and a proven business model.
Also, since you won't have to start completely from scratch, the challenges and problems of financing, market entry and promotion will be less.
Here are some keys to get you started.
⁕ Conduct market and competitor research
The market study or benchmarking serves to assess the sector and the activities that work best in the place where you intend to open your franchise, and it's essential to check the economic viability of your project.
Information to keep in mind:
- The position of the product or service in the market.
- Current supply and demand.
- Audience segmentation.
- Price analysis.
- Distribution and marketing channels.
Regarding the analysis of the competition, it’ll help you see what works and to detect mistakes you shouldn't make in your business.
The aspects of your competitors that you should analyze are:
- Work process
- Customer service
- Benefits of your product or service.
- Promotion strategies.
- Keys that have led the company to be where it is (location, target audience, consumer trends, etc.).
⁕ Find out which types of franchises are most successful
I'm sure you're also asking yourself "I’d like to open a franchise, but which type is more successful?". Most franchises have enough information on their portals for you to know which entrepreneur profile fits them.
You can also find information in specialized magazines or specialized portals, seminars, trade fairs, etc.
Ideally, you should look for franchises that meet your needs. We recommend you contact the ones that catch your attention and that you communicate your doubts to them.
On the other hand, it's advisable to know what types of franchises exist. The most common is the individual franchise (use of the brand, products, work system and provision of services in a single location/establishment/business), although there are also franchises:
- Multiple franchises. An investor or franchisee acquires rights to open several franchises.
- Master franchise Coordinates and monitors compliance with the quality and service standards established by the franchisor.
- Corner Franchise. Installed inside a store or business to attract new customers. When the franchise does not belong to the same commercial branch, it is known as a "shop in shop" franchise.
Finally, consider whether your franchise will be self-employment or a source of investment.
⁕ Obtain sufficient financing to open a franchise
If I want to open a franchise, how can I raise the minimum financing? You should definitely know how much money you need to start your business.
If you have several franchises in mind, review the investment required for each one, and adapt to the amount you can afford.
Remember that it is common to be asked, in addition to having the premises, for an entry fee and a percentage of royalties for image expenses, promotion, etc.
To obtain financing, you can resort to traditional methods (bank loans, credit lines, official aid, investors, etc.) or more innovative formulas, such as crowdfunding.
⁕ Finding the right partner
Finding a partner that aligns with your business needs is crucial to your success.
It is important to create a relationship of trust, in which you feel comfortable. Good communication and transparency are essential. In addition, you must understand the business model as a whole.
You should also look for a partner to help you in your current growth, but with whom you can plan future actions. It's important you share the values and passion for your business.
At least that's how we see it in our international Jeff franchise model. We are committed to innovation and our models are backed by experience and acquired knowledge.
⁕ Resolve any legal or financial doubts before signing the contract
I want to open a franchise but I have legal doubts. What should I do? Usually, the franchise will send you a report with all the data and information about its sales and operation project.
You should receive this document at least 20 days before signing the franchise contract, so that you can review it. We recommend you pay special attention to legal and economic aspects such as:
- Type of contract
- Your rights and obligations as a franchisee.
- The franchisor's rights and obligations.
- Exclusivity or non-competition clauses.
- Financial obligations (initial investment, royalty payments, etc.).
- Confidentiality agreements.
Frequently asked questions about franchises
How do I contact the franchise?
Franchising companies have direct means of contact through their website, where you will find a form, a telephone number or an e-mail address.
Or you could visit franchise fairs where there are booths where you can talk directly with their representatives.
How long will it take to open my franchise?
For franchisees, it's important the opening process be quick: the sooner they start operating, the sooner they get a return on their initial investment from their revenues.
In Jeff's case, the opening takes place within approximately 60 days from the signing of the contract. During this time, the premises are refurbished and equipped. In parallel, the entrepreneur completes the training course.
During this period, it is also essential to work on the pre-opening marketing campaign. In some business models, such as Fit Jeff fitness centers, it is even possible to start recruiting subscribers before opening.
How long will I have the franchise?
It depends on the partner and the conditions you agree upon when signing the contract, although the standard duration of the franchise contract is 5 years.
When is a confidentiality agreement necessary?
Nowadays, practically all franchise contracts include a specific clause on internal processes and know-how so that they cannot be passed on to third parties without specific authorization.
We hope we’ve answered your question “if I want to open a franchise: Where do I begin?”. If you’d also like to start a Jeff Franchise, we are at your disposal to resolve any doubts you may have. Get in touch We’ll be happy to assist you!