You spent a weekend, or maybe just a day, at the recent International Franchise Expo (IFE), and you’re feeling euphoric because you’ve seen your future! Now all you’ve got to do is seize it, and you may be wondering how?
Or it’s possible you spent a weekend at IFE and aren’t feeling euphoric because you didn’t see a franchise business that you’d like to buy.
Still, you’d like to be in business for yourself, so you may be wondering what now?
If you found “the one,” as in the one franchise opportunity at IFE that you know you must buy, you’re among the lucky few. But with hundreds of franchise concepts on display at the IFE, you may have found more than just one franchise business to buy, and you’re frustrated because you, too, want to know what now?
Most people who attend the International Franchise Expo (IFE) or other franchise trade shows are initially overwhelmed because there are so many choices. On the other hand, some people get upset when they walk onto the show floor because – get this – “McDonald’s isn’t here!”
Now that’s funny. Why would McDonald’s – sold out in the USA – spend thousands of dollars to participate in a franchise expo designed to sell franchises in the USA?
Questions remain after the franchise expo
It’s very likely that whether or not you found a franchise business to buy at IFE, you didn’t get all your questions answered because a weekend just isn’t enough time to make a monumental decision about your future. Buying a franchise may be the most expensive investment of your lifetime, and you shouldn’t make that decision without getting all your questions answered. So what now?
First, take a breath. You’re not the first person to consider buying a franchise in the USA. There are almost 800,000 franchises already operating in America. Most people who attend franchise trade shows find it to be both exhilarating and frustrating. There are so many possibilities – you just can’t think straight.
But now, here are several recommendations that will help you continue your franchise journey. Here’s what’s next:
1. Schedule an hour this week to sort through that bag of literature that you brought home from the expo – the bag with brochures, booklets, business cards, pencils and other giveaways, maybe even a left over pretzel. Do not toss the bag into a closet – you’ll never find it! Keep only what interests you. As for the rest of it, give it to family and friends who you think might be interested in a franchise, or toss it.
2. Focus on an industry or two. There are 75-plus primary industries using franchising as a method of distribution. You’ve got to figure out which industry will work best for you. If you don’t boil down your choices to an industry, you may never live long enough to buy a franchise. There are just too many possibilities.
3. Do your best to keep information about no more than six franchise brands, hopefully in one industry. Okay, if you need to keep information about ten concepts, go ahead, but keep in mind that more concepts means more work and more time, and it doesn’t necessarily mean a better choice of a franchise.
4. Schedule time to think about your strengths as a franchisee. Now’s the time to review notes from any of the seminars you attended at the expo. Or if you’ve met with a franchise coach, or you’ve taken notes from books that you’ve read, or interviews you conducted with existing franchisees, look at that information and review why you want to be a franchisee and what type of franchise you want to own for the next 5, 10 or 20-plus years.
5. Look again at the information you collected about the franchise concepts, including information that you collected from franchise websites. Which concepts meet your expectations? Which concepts, when you think about representing them as a franchisee, send shivers up your back? You’ll know which one or two is right for you. Now concentrate on them. What more do you need to know about them?
6. Who represented these businesses at the expo? Got their business cards? Make a phone call right now (so what if it’s 2 a.m., leave a voice mail) and introduce yourself. Explain that you have reviewed the company’s information and you want to take the next step to become a franchisee. Don’t get scared. You’re not committing to anything. You are not committed to buy a franchise until you sign the franchise agreement, so stay calm. You’re merely considering your options at this point. Ask if you can attend an upcoming Discovery Day, or even better, find out if someone from the company will meet you at one of their local franchises to help you get more information.
7. If you haven’t completed the franchise company’s qualification form, or application for a franchise, do so now. Again, there’s nothing to fear. It doesn’t cost money, and it doesn’t obligate you in any way to complete the company’s application. However, you’re not going to get additional information, including the disclosure document, or get invited to a Discovery Day until the franchisor knows more about you. If you’re not qualified to become a franchisee for a particular concept, the franchisor will quickly let you know and you’ll need to move on to the next business, or convince the franchisor why you are qualified.
8. Schedule a date to meet the franchisor, either at a franchisee’s location, or at the franchisor’s location. Before or during this meeting, the franchisor should give you the franchise disclosure document, as required by law. Ask for it! Take notes when you meet with the franchisor. Take a family member with you. Your mission is to learn all that you can about the opportunities the franchisor offers you, but to also assess the opportunities in terms of your expectations and qualifications.
9. Complete your due diligence. Meet with existing franchisees and visit franchise locations to ask questions and observe. Go back through the notes you took when you read books about how to buy a franchise and when you sat through seminars where you were told the A to Zs of Buying a Franchise. Follow through on these important details, making certain that your franchise choice is compatible with your desires and qualifications as a franchisee.
10. Set appointments with your advisors including a franchise attorney, an accountant, and moneylenders (unless you don’t need money to invest in a franchise – lucky you!). Talk to representatives from the U.S. Small Business Administration – even if you don’t need money, SBA has seminars that may be helpful to you. If there’s a Small Business Development Center Small Business Development Center in your city, go there!
11. Set your own Decision Day! You don’t need to feel intimidated by a franchise sales person. You are in control of buying your franchise. You’ll make the decision when you are ready. If they pressure you, i.e. “If you don’t make the decision this weekend you could lose this opportunity,” be willing to take that risk. Don’t say “Yes” until you are convinced that this is the right franchise opportunity for you. Once you’re convinced, the rest is easy. Call the franchisor, get the franchise agreement (it’s different from the disclosure document – it’s the only document that obligates you), sign it, and set your date to join the franchisor’s training program. Within a matter of weeks you’ll be a franchisee!
Its’ time to celebrate
And now, kick back and celebrate for a while. Once the training begins, you may be in a daze for a while trying to make sense of all the information. You may even ask yourself, “What did I do?” . . . but it’s merely a momentary reaction.
What you did was buy a franchise business, and if you did your homework well, you’re at the beginning of what will hopefully become an amazing franchise journey with all the rewards you anticipated. And it all began at that franchise expo!
Final point: If you just can’t find a franchise to buy, or you’re not ready, there’s always next year.
Tags: Due Diligence, franchise expos, IFE
Categorised in: Franchise FAQ's
This post was written by Dr. John Hayes