How to Open a Franchise

It's easy to see why thousands of new franchises open across the globe every year. Franchise businesses have the advantage of an established, well-known brand and the support of a successful parent company. However, despite these advantages and the popular conception that franchises are a "safer" investment than traditional small businesses, the success rate of the two remains about the same.[1] Even with the support of an experienced company behind you, you'll need significant investment capital, lots of hard work, and a shrewd business sense to turn a profit as a franchisee.

Part One of Three:
Becoming a Franchise Owner

1
Contact your desired franchise business(es). Start your journey to franchise ownership by meeting with franchise businesses that interest you. Schedule appointments with representatives from your chosen franchises to learn the requirements to open your own franchise. Ask for statistical data about the franchise's operations and find out the kinds of training, marketing and operational support the franchise representative can offer you.
Responsible, legitimate franchises will be happy to share information with you. Be wary of businesses that seem reluctant to disclose specifics about their franchises (especially success/failure rates) or overly eager to "sell" you on hot, too-good-to-be-true deals.

2
Make a business plan. Review all of the information that you've been offered by your prospective franchisors as well as your own research into market conditions. Incorporate this information into a thorough, well-written business plan. Make sure your business plan includes estimated investment costs and projected returns. The quality and legitimacy of your business plan can dictate not only whether you are allowed to open your own franchise, but also whether you're approved for any loans you may need.

3
Enlist professional financial help. The myriad laws surrounding the opening of a new business can be tremendously complex - for first-time owners, even prohibitively so. Unless you have seasoned legal or accounting knowledge, seriously consider getting a lawyer and/or accountant to help you review the specifics of your new business. The fee associated with obtaining this type of help is well worth it in the long run, especially if it prevents you from entering into an exploitative contract or making unwise investments.

4
Raise investment capital. If you're independently wealthy enough to pay for the opening of your own franchise entirely out-of-pocket, you're one of a lucky few. Most people need some form of financial assistance to cover some of their franchise's initial investment. Present your business plan and any relevant information from franchise representatives to banks or private investors to show them that your business opportunity is a viable one.
If you're unable to obtain a loan from a bank or commercial lender, you may find success with a government loan from the government's Small Business Association (SBA). These loans are partially guaranteed by the government and are generally seen as lower-risk than traditional loans.[2]

5
Sign your contract with the franchise owner. When you're confident you meet all requirements for franchise ownership and that your business plan is a recipe for success, you may proceed to signing a binding agreement with your franchisor. Make sure to have your attorney review the contract before you sign it. If you have any questions or need more information, be sure to get satisfactory answers from franchise representatives before agreeing to anything.
This is another part of the process during which you'll want to have access to the expertise of a financial professional. Make sure to have your attorney review the main contract and any other binding documents before you sign them.

6
Enroll in your franchisor's internal training/orientation program. Most franchise businesses require new owners to receive training to prepare them to run their new business accord