Starting a Franchise: What you need to know

Starting a franchise is a big decision. But deciding to take the plunge is only the start of the journey; your new business still needs setting up, which is easier said than done. So how do you go about it?

Research setting up a franchise

When starting a franchise, you first need to identify the right option for you. Research the franchises that are of interest and, once you've decided which to invest in, request a prospectus from the franchisor so that you can create a business plan to present to potential lenders.

Consider your finances

Once your finances are in order, you'll need to sign a franchise agreement - a legally binding contract between the franchisor and franchisee that sets out how the franchise will start, run and end. You will also need to pay any start-up fees to the franchisor at this stage.

Location is key when starting a franchise

You may also be required to secure a suitable location for your business. Franchisors will either help identify a suitable site or will need to approve a site nominated by the franchisee. If the franchise is mobile, you will need to agree on the areas in which you are permitted to operate. 

You will also need to obtain any necessary permits and insurance. The franchisor should know what you will require but it may be worth checking with local authorities to ensure compliance.

Training and staffing

Next, you'll need to attend training - organised by the franchisor - and, depending on the size of the franchise, hire staff.

Your customer base

Finally, you need to make your customer base aware that your business is opening in their area, when you are opening and what products and services you will be offering. The franchisor will usually assist with publicising a new franchise and have marketing and advertising strategies in place. Once these have been implemented, you're ready for business!

To find out how to join our extensive network of Cafe2U franchisees, click here.