When my clients ask me how long it takes to buy a franchise, I typically tell them it takes 3-4 months. That’s because you first need to find a franchise opportunity that’s a good match for you.
By “good match,” I’m referring to the fact that the franchise you choose needs to:
A. Be within your budget
B. Be a good match for your top skills
C. Have good profit potential (based on your research)
D. Be available in your geographical area
Additionally, you’ll need to write your business plan, have one or more consultations with your franchise attorney, and sit down with an accountant who’s familiar with small business taxation and the like. All of which take time.
But beyond the initial research and groundwork phase, how do achieve the goal of getting your franchise business open as soon as possible?
The Three Steps You’ll Need to Take Before You Open Your Franchise
Step 1: Finding A Location
It’s important to know that if you purchased a franchise that requires a physical location, it may take longer to secure a location that you and your franchisor approves of.
The good news is that more and more franchisors have dedicated real estate departments whose focus is on locating and securing great locations for franchisees. As a result, the entire process of securing a location is streamlined.
Tip: When you’re doing your franchise research, ask your franchise development representative if they have a real estate department.
And while we’re on the topic of location, there’s something critically important you need to know, especially if your franchise business requires a prime location. It’s this: You need to step up and pay the market price.
In other words, the commercial real estate market conditions in your geographical area have everything to do with the price you’ll be paying to rent your space. So don’t pass up a great location because of the price (unless you can’t get the numbers to work out for your budget).
Timewise, it can take 3-6 months (sometimes more) to secure a suitable location and sign your lease.
Step 2: Permits And Taxation
Before you can open your franchise business, you need to make sure you apply for your business permits and licenses. Your franchisor probably has a list of things, paperwork-wise you need to complete before you can legally open for business.
In addition, plan on sitting down with an accountant who’s familiar with franchising and/or small business. She or he will help determine your tax obligations, set up accounting procedures, and provide advice on how to track your sales and expenses.
Plan on spending a month or so on this part of the opening process.
Step 3: Training
One of the things that makes franchising attractive is the fact that you’ll be trained on every aspect of the business you just invested in.
And because of technology, in some cases you’ll be able to participate in some of the training online, before you travel to franchise headquarters for several days of formal training.
Here are some of things you’ll learn:
- Operations
- How to use their technology
- Marketing/advertising
- Hiring
- Employee training
- Bookkeeping requirements
...And more.
Getting to Opening Day
By the time you’re ready to open your doors, you’ll know exactly what to do. Some franchises even offer opening assistance to guide franchisees through the first days of their business operations.
Finally, there are always a few last-minute (unexpected) things that will need your attention in the days and weeks before you open your doors. They’re not listed here because they’re pretty random in nature.
But when unexpected issues do arise, call headquarters first. In most cases, other franchisees have experienced the same things, and your support team may be able to help you tackle the unexpected things you’re dealing with on-the-spot.
So you can open for business as quickly as possible.
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The Franchise King®, Joel Libava, is a top franchise expert. He’s written over 2,000 different articles on franchise ownership and personally consults with people who are looking to buy a profitable franchise. Go here to find out how The Franchise King® can help you become your own boss.