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- Become a Business Owner to Change Your Life
Owning a business forever changes your life.
It gives you unlimited income potential, a flexible schedule, new skills, new relationships & opens doors you never knew existed.
You also impact your community by creating jobs & providing a valuable service.
Owning a business is also extremely difficult. You make mistakes and don’t get a paycheck some months. You will be stressed out and sometimes work crazy hours.
The good news is it gets easier as you become a more seasoned entrepreneur.
Most people aren't willing to do what it takes, which creates tremendous opportunities for those who are willing.
"The best time to start a business was 10 years ago & the second best time is now." - Brian Beers
The easiest way to become a business owner is to buy a franchise.
A franchise is a "business in a box". Inside the box is a proven playbook, an established brand, a website, marketing, software, a community & more. They train you how to operate the business & provide ongoing support.
Franchises are meant to be scalable. You start with 1 to 3 locations. Then expand to 5, 10, 15, or 20+ locations. A great franchisor will encourage & support your growth. The biggest franchisee in the US has 2,600+ locations doing $4B+ in revenue!
Not all franchises are equal. Some forbid multi-unit ownership. The big boys like Chick-Fil-A & UPS Store limit owners to 2 or 3 locations.
Many look like a Ferrari, but have a Prius under the hood.
I want to help you weed through the junk to find the best franchisors that allow ordinary people, like me & you, to build strong cash-flowing businesses.
The 8 steps to buy a franchise in 2024:
Step 1: Research
The first step is researching what type of franchise best fits you.
You can research online, go to trade shows, and talk to people in the franchise business.
A quicker option is to work with my team. We interview you to understand your budget, goals, & skills. You don't waste time looking at franchises that aren't available or aren't a fit. You narrow our list to a few based on what excites you.
We also provide education, checklists, and resources to give you confidence. This matching service is 100% free to you.
Step 2: Franchisor Introduction
The first call with the franchisor is like a first date. They want to understand your background and goals in owning a business. You want to determine if spending more time on this brand is worth it.
Every franchisor is different in its expectations of franchisees. Many require owners to be hands-on, working daily to grow the business. This doesn't mean you are flipping burgers or painting houses but focused on hiring, training, selling, and leading the team.
Some allow for a "manage the manager" model where you keep your W2 and only work 5-10 hours weekly on the business.
This is how I'm running our 13+ units of That 1 Painter.
Be very careful if you go this route. You need a great manager; otherwise it can be a disaster.
Step 3: Unit Economics
The franchisor will review the business model in depth. They go over the history of the company, its products/services, competitive advantage, target customers, & more.
They review the range of start-up costs, which depend on several factors.
They also discuss earnings potential based on "Item 19" of their FDD. Each franchisor decides how much financial performance they disclose. Some report sales, gross margins, and KPIs. A few report full P&Ls or absolutely nothing.
Step 4: Territory Mapping
Next, you start to review territories or trade areas for retail locations.
You'll look at demographics, income, housing value, and more. Franchisors have specific criteria they are looking for in creating a territory based on their business model.
The smaller the franchisor, the more flexibility (aka negotiating power) you have in designing your territories.
Step 5: FDD Review
The FDD (Franchise Disclosure Document) is a 250 to 500-page contract you sign to join the franchise. Every FDD is organized in the same format with 23 Items (chapters). The uniformity makes it much easier to read and compare franchises.
The FDD will cover founder’s background, lawsuits, estimated start-up costs, royalties, fees, territory protection, approved and restricted services, renewals, termination, and more. It includes audited financials of the franchisor and contact information for current & former franchisees.
The franchisor will send the FDD early in the process. On this call they walk through the entire document, item by item, answering any questions you have.
Before you sign, I recommend having a franchise attorney review the agreements. My team can provide referrals if needed.
Step 6: Leadership
Up to now, you've most likely dealt with the franchise development team.
You speak to the leadership team once you are closer to approval: The Founder, CEO, President & anyone else they choose. You want to understand the leadership's 5, 10, and 20-year plan.
The quality of the leadership team in emerging franchises is more important than the business model. You could have the best business model in the world that will go nowhere if the leadership team can't execute.
Step 7: Validation
During the validation step, you speak to existing franchisees. You ask about the training, support, marketing, sales, margins, & profit. Fast-growing franchisors schedule group calls to save their existing franchisees time. You can also set up 1-1 calls with specific franchisees.
These calls aim to validate everything you've learned up to this point. If you speak to franchisees too soon, you won't know 50% of the questions to ask. Plus the franchisor doesn't want to waste their franchisee's time with people who aren't serious.
My team will provide you with 20+ validation questions to ask other franchisees to ensure you cover all the bases.
Step 8: Confirmation Day
The final step is Confirmation Day (some call it Discovery Day). You will fly to HQ to meet everyone in person. You will meet all the department heads and get a behind-the-scenes look at the business.
After confirmation day the brand will award you a franchise or decide you aren't a good fit. From there, you make a decision to move forward or not.
Timeline
You can move pretty fast if you find a franchise you love — as quick as 30 days from introduction to signing. Many people find a brand within 90 days of starting the search.
You can stop or slow down this process at any time. A good franchisor will move at your speed.
Don't let them push you faster than you want to move. Keep in mind that emerging franchises grow quickly. You could lose your desired territory if you drag out the process too long.
After signing you’ll be up & running in 60 to 90 days for mobile businesses. A retail business could take 6-12 months depending on finding & building out the real estate.
Connect
I'm making 2024 the best year ever by 10X-ing my business & life.
I'd love to help if you decide to do the same. Get started today by booking a call with my team.
On my podcast, Business with Beers, I interview franchisors, franchisees, & do deep dives into specific topics.
Cheers!
Brian Beers