Again I’ve been communicating with Lori, president of http://franchoice.com
On my last installment I gave the first two steps in starting a franchise. Here are steps three and four exactly as relayed to me be Franchioce
STEP 3Let’s say you’ve found an assortment of franchises that look promising. What do you do next? Contact the franchisors and request information about their concepts. You will probably get call from someone in the franchise development department who will gauge your interest and advise you if the territory you seek is available. You will want to thoroughly view the web site information and any brochures and videos they send you. Keep notes on your impressions. Are their materials professional and up-to-date? Are you treated courteously by a friendly and knowledgeable member of the corporate office? Are your questions and concerns answered to your satisfaction? What you see from the company at this time may be an indication of the type of support you would receive as a franchisee in their system. STEP 4Your next step is to read the company’s UFOC (Uniform Franchise Offering Circular), a document every franchise in the United States is required to provide. From this you will learn the history of the company, the training and marketing programs, and what costs, royalties and fees you will be required to pay. Some franchisors also provide earnings claims in the UFOC that will help you estimate the potential of the business. The UFOC is full of information about the franchise and it clearly explains the responsibilities of the franchisee (you) and the franchisor. Your UFOC review and understanding is a very significant part of the research process. By paying attention to what you discover in a company’s UFOC, you can weed out franchises that just don’t measure up. Some warning signs of a franchise that is facing challenges are extensive litigation with franchisees or a closing rate of units greater than what’s being opened.
