After buying a franchise …
After the checks have been issued and the legal documents signed and officially transferred to your name, you are finally proud owner of a franchise business. It could be a mobile business, a retail store, a computer consultancy operation or a nursery school. You have waited and prepared this moment and now that you have found the right company to own, you are ready to manage the business.
Opening steps in franchising
There are tasks that you need to complete after purchasing your franchise. These are grouped into five phases. These following steps after the purchase of the franchise are explained in detail below:
1. Set your franchise position – Most franchises, especially those focused on retailing in general, need a place from which they can operate effectively. This position can be a single unit in a mall or in an independent building. Even mobile franchise businesses such as home decorating consultants or auto repair services require a place for operations, regardless of whether they are simply part of the home garage. You may need to purchase or rent a building if the franchise purchased requires a store. Franchisors can be very valuable when starting and establishing their business. Most franchisors have their own real estate experts to help you get the best position for your franchise. These experts can assist in leasing negotiations and contribute to the remodeling or construction of the site. Even if you manage a franchise business from home, the franchisor can offer suggestions such as the appropriate square footage you’ll need for a management area and the best layout for inventory and storage of equipment.
2. Participate in franchise training programs – Training can last for weeks or a month, depending on the nature of your franchise and the complexity of your business. Almost all training programs are conducted at the main headquarters of the parent company. In these training sessions you will learn a lot: from daily operational methods to various tricks of the trade. These usually include time in the classroom to review merchandising and marketing elements, as well as basic accounting procedures. Take advantage of this opportunity to learn more about owning a franchise and how to manage it successfully. Additional assistance is also provided when the location of your business is ready and operational. This is called onsite training, where the staff of the parent company will work in your store to guide employees for the first few months of activity.
3. Implement your spending plan – When you sign the purchase contract, you’ve probably already paid the franchise fee. There are other financial responsibilities that must be met before you can start operating. While you have listed your financial obligations in advance, the time between the actual purchase and the opening day is the period when you will spend a lot of money. There are equipment to buy, advertising and marketing methods to organize, as well as supplies to stock. Even if the franchisor supports some of these expenses as part of the franchise agreement, everything should cost more and take longer than expected. Prepare for delays and be sure to plan efficiently, because the pre-opening ritual can cause stress and anxiety.
4. Hire your staff: you have to find and hire employees, unless, of course, you want to manage your franchise yourself. Almost all franchisors have specific hiring processes that franchisees must follow. These include standard languages and sought-after forms of employment, designed by the home office. Follow these steps accordingly to avoid violating labor laws. This is very important especially if you have never owned or operated a business before. Determining which questions you need to ask and which criteria are appropriate for choosing an employee will surely help you avoid legal problems.
5. Properly Train Employees – As a new franchisee, you need to train workers and pass on to them all the things you’ve learned from the training programs you’ve attended at the parent’s main office. You can assign an employee as an assistant manager who will take over during your absence. Make sure all employees know about the company’s services and products. Remember that the more they know about your business, the better they can serve your customers.
After buying a franchise …