Franchise Startup Checklist

By: HubSpot

Research franchise opportunities:

• Make a list of the markets and companies you are most interested in.
• Carry out market research to assess the level of competition and demand.
• Look into various franchise opportunities in your preferred sector.
• Consider factors like brand reputation, financial stability, and support provided by the franchisor.

Evaluate your financial and personal readiness:

• Assess your skills, expertise, and passion for the franchise.
• Determine your financial capacity for investment capital.
• Evaluate your creditworthiness and ability to secure financing.
• Create a business plan outlining your goals, strategies, and financial projections.

Contact franchisors:

• Reach out to the franchisors of franchises you are interested in.
• Ask the franchisors to provide their franchise disclosure documents (FDDs).
• Pay close attention to the terms, charges, and obligations in the FDDs as you read them.

Perform due diligence:

• Speak with current and former franchisees to gather information and insights. Visit current franchise locations to observe business operations and performance.
• Review contracts and financials with the help of experts like lawyers, accountants, and business advisors.

Secure financing:

• Speak with current and former franchisees to gather information and insights.
• Research financing choices like bank loans, Small Business Administration (SBA) loans, or investments from private parties.
• Prepare any necessary financial documents and apply for funding.

Select a location:

• Determine appropriate locations for your franchise based on market research and franchisor specifications.
• Consider factors such as competition, demographics, accessibility, and visibility. Talk to the franchisor about any adjustments that are required.
  Once both parties are satisfied, sign the franchise agreement.

Set up your business:

• Obtain the licenses, permits, and authorizations needed to run the franchise.
• Set up the physical location, buy the necessary tools and equipment, and place the initial inventory order.
• Create connections with vendors and suppliers. Hire and train staff, if needed.

Implement marketing and advertising strategies:

• Create a marketing strategy to advertise your franchise.
• Make use of the marketing resources and support provided by the franchisor. Streamline your marketing strategy with a free CRM and marketing software. Develop a local marketing strategy to attract customers in your area.

Launch and ongoing operations:

• Open your franchise location to the public.
  Observe the operational standards and guidelines that the franchisor has provided. Monitor and manage day-to-day operations.
• Attend training sessions, stay in touch with the franchisor, and take part in ongoing support initiatives.

Download this FREE SAMPLE Checklist here