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The Franchising Process: 4 Essential Steps Explained

Entrepreneur reading the franchise process

We break down the franchise process into 4 essential steps so you know what to expect in your new franchise investment.

Do Your Research

The first step of the franchising process is in identifying your ideal investment opportunity based on industry, concept, startup costs, and various other factors that may be pertinent to your situation or goals. Some factors to consider when researching franchises include:

A Strong Reputation. Whether a franchise has 10 locations or 10,000, it’s important to align yourself with a brand that is positively regarded both locally and across public opinion. A good reputation can go a long way to provide built-in business when you first open your doors.

Solid Financial Track Record. It’s worth researching a franchisor’s history of profitability, if they’ve managed to maintain financial strength, and where or why they have faltered.

A Growing Market. Choose a market that is positioned for opportunity and growth for years to come. A hot and happening concept may be great in the short term, but franchisors with long-term focus and growth potential will provide you with a richer business experience.

Size Up the Local Business Community.  By getting a sense of what businesses do well in certain areas, which others seem ill-positioned, and what neighborhoods are underserved by certain markets, you can home-in on the type of franchise that will work best in your community. One of the benefits of working with a franchisor is that they have already done much of the research and legwork to identify ideal locations and specifications for their business model.

Repeat Business. What is the potential for return customers with a franchise? If it’s a salon franchises that offers membership packages or loyalty benefits, the likelihood of repeat business is high.

Choose Your Franchise

The next step of the franchising process will be to choose the brand that bests suits your goals, skills, budget, and more. From there, you will learn all of their franchising terms and conditions, familiarizing yourself with the Franchise Disclosure Document (FDD), which outlines all the rules, fees, responsibilities, and financial history of the brand. Another way to get to know the franchise is to speak with current and former franchisees to learn about their experience with the brand.

After attending Discovery Day, where you will meet the executive team and learn more about the brand’s mission, history, and values, the franchisor will present you with a franchise agreement, which is a formal legal contract between franchisor and franchisee that prepares you to officially open your franchise. Be prepared to consult an attorney to review the agreement before you sign it. Make sure you understand the exact terms of the contract, including all your rights and obligations under the agreement, as well as what you can expect from the franchisor.

Secure Financing & Sign With Your Ideal Franchise

Depending on the franchise, you will sufficient capital to qualify to become an owner, and that may require some outside assistance. Whether through personal equity, traditional banks loans, or SBA loans—which are favorable to prospective franchisees as the success rate with franchises is higher than that of new, independent ventures—the franchise costs and fees associated with your chosen franchise will be attainable and provide you with a comprehensive platform and support system with which to launch your business.

Opening Day and Beyond

When you franchise Uni K Wax, you receive the training, support, and brand recognition of an award-winning brand. Through a proven franchise model that supports both new and experienced franchise owners, Uni K is a standout opportunity in the billion-dollar global waxing industry. With nearly 30 years of industry experience and a proprietary wax blend that prioritizes clients’ comfort and gives franchisees a unique advantage over the competition, Uni K Wax welcomes new franchise owners who share our commitment to excellence.

To learn more about our franchising process and opportunity, request info.

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