Becoming a franchisee :
the key steps

In these times of economic, social and health upheaval, many people are wondering about their professional future. On the one hand, there are those who opt for retraining, and on the other, those who launch themselves into entrepreneurial projects. There are many ways to become your own boss: franchising is one of them. This business model is based on a networked activity, with a collaboration contract between 2 parties: the franchisor and the franchisee. But how do you become a franchisee? What are the key stages?

Personal assessment:
the key stage in any franchise project

Setting up your own business is a major undertaking, and not one to be undertaken lightly. Becoming your own boss is one thing, but you still need to have the means to do it, both financially and mentally. That’s why you need to be highly motivated to become a franchisee.

Before opening your own franchise, it’s essential to ask yourself a number of questions and take stock of your personal situation. Take stock of your strengths and weaknesses, and ask yourself whether you have the technical, commercial and management skills to run a franchise.

Determine your
business sector

There are many sectors in which you can open a franchise. Housing, food, fast food – there’s no shortage of sectors. However, while many franchise businesses require few specific skills, it’s better to launch your business in a sector you know or, better still, have mastered. If you’d like to find out more about a sector that appeals to you, don’t hesitate to contact franchisors and ask them your questions. Our tool will put you in touch with them or enable you to attend webinars (also available as replay).

Conducting market research

As with any business launch, market research is a key step in developing your concept. It enables you to maximize your chances of success. It should cover not only your geographical area, but also your business sector. Who are your competitors? What’s the ideal location? How is your business perceived? If you don’t know how to carry out market research, you can enlist the help of marketing consultants, for example.

Choosing
of franchisor

Once you’ve determined your business sector and done your market research, the next step is to choose a franchisor. The choice of franchisor may be based on affinity, but must above all be based on rational criteria. These include not only the budget required (entry fee, personal contribution, necessary investments), but also the precise concept, profitability, support, etc. The best way to make your choice is to visit the site (multiply your visits if necessary), talk to existing franchisees and ask for documentation. At Welcome Franchise, you can obtain all the information you need, without obligation, and make appointments with the franchisors of your choice.

Define
the financing plan

One of the last fundamental steps before looking for premises and signing a franchise agreement is purely financial. You’ll need to draw up a financial plan and a forecast, which you’ll need if you want to get a loan from a bank, for example. The forecast should include 3 values (a low, a median and a high forecast). Note that even a low forecast must be profitable, or at least break even. On the basis of this low value, you’ll need to determine the minimum amount required to open your franchise. The financing will be made up of a personal contribution and other resources such as honor loans, deposits, exemption from social security charges …

In conclusion, these main steps to becoming a franchisee focus on the budgetary aspect of your project. You’ll then need to manage other steps to make it a reality. These include looking for premises, choosing your status and signing your franchise contract. Even if there’s still a long way to go, professionals such as Les rencontres digitales de la franchise can help you along the way.

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