How Do Franchisers Assess Someone For Their Opportunity?

The franchise granting process is referred to as the Franchise Discovery Process. This is how a franchise candidate learns about a franchise. In turn, this is how a franchisor qualifies a candidate for their opportunity.  

This process takes place over several weeks (six or more). 

Key aspects of it include

• Brand overview

• Franchise Disclosure Document (FDD)

• Operations and business format

• Technology and systems

• Marketing and customer acquisition

• Training and support

• A day in the life of a franchisee

• Validating with current franchisees and

• Attending a Meet the Team Day

Both parties assess each other throughout this time. If there is a mutual match, then a new franchisee joins the system.

To understand the Franchise Discovery Process in detail and to learn tips for being a successful franchise candidate, check out this Franchise Alert.

Remember to SUBSCRIBE to @BeWildlyWealth to learn what you don’t know but NEED TO KNOW about making a franchise investment.c

What exactly is a Franchise?

There are national chains like Kroger grocery stores and Walgreens drug stores but they aren’t franchises.  Most franchises like Subway and Ace Hardware Stores are national in scope. So what’s the difference between a national chain that is a franchise and one that isn’t?

Look at who owns the business.  

Can a person wholly own a Kroger or Walgreens?  No. A person can buy shares of their stock and be part owner.

Can a person completely own a Subway or Ace Hardware Store?  Yes.  

How does someone get to own a franchise?

The person buys a LICENSE to use the branding, trademarks and business format of a specific franchise. 

There is a one time payment for the license called the FRANCHISE FEE.

The key is to be AWARDED a franchise by the franchisor. A geographic area or TERRITORY is typically included.

For the past 20 years, I’ve helped people select and vet franchises that are a great fit for them.

If you long for an  EXIT STRATEGY from your job, need a FINANCIAL BRIDGE to or through retirement, or wish to DIVERSIFY YOUR ASSETS and create ANOTHER INCOME STREAM, let’s set up a time to talk. 

To be informed about what a franchised business involves, check out this Franchise Alert. 

SUBSCRIBE to our @bewildlywealthy YouTube channel to learn more about franchises.