When an individual decides that he/she wants to expand his/her business, he/she may consider starting a franchise. Creating a new franchise requires an extensive amount of time, energy, and money. An individual should understand all aspects involved in starting a franchise before he/she begins this large undertaking in order to ensure that he/she is prepared for the many challenges that he/she will face during this process.
An individual should be aware that taking advantage of a franchise business opportunity and establishing a new franchise will cost him/her at least $500,000, and in many instances an individual will be required to spend over $1 million starting a franchise. He/she may not see a return on his/her investment for a few years, as it takes time to build widespread notoriety.
When establishing a new franchise, an individual should spend time reviewing the information and publications provided by the International Franchise Association. Some of the first factors that an individual should consider when starting a franchise are the legal aspects associated with this process. It will be necessary for him/her to prepare a Uniform Franchise Offering Circular. This document is vital if an individual wishes to begin a franchise in any location within the country. In addition, an individual should review the laws and regulations regarding franchising in specific states, as each state maintains different regulations regarding this process.
Detailed accounting is an essential component of starting a new franchise. An individual must develop and maintain detailed files about the company’s operation. The business owner must also create training manuals, business plans, and marketing plans.