A new business is exciting, fun, and a little scary at the same time. Franchising a business is all of those things, but running one is different.

Anyone interested in starting a business without going it alone should think about franchising. Franchise owners and operators use the brand and products of another company. Among the most popular franchises are KFC, McDonald's, Marriott, Hertz, and Subway.

Reasons to Consider Franchising

Franchising is a tried-and-true business model that allows you to tap into an established consumer base while pursuing your entrepreneurial dreams. You may support yourself and your family while employing people in your community by launching a franchise.

The Pros and Cons of Franchising

There are benefits and drawbacks to franchising. Let's begin with the professionals. The following are some of the advantages of franchising a business:

• A tried and true business model
• Customers that have been with you for a long time
• Support from the corporate office is available.
• Brand recognition already exists

The following are some of the disadvantages of franchising:

• Being required to represent the brand and company in accordance with your contract
• Vendors have less flexibility.
• Royalties on the brand are paid.
• The cost of starting a franchise might be quite costly in some cases.

7-Step Guide to Franchise a Business

1. Select a Franchise to Operate

From hospitality to entertainment, you may launch a franchise in almost any industry. Restaurants and retail may come to mind first when considering creating a franchise, but you may franchise almost any type of business, including art studios, education, healthcare, and many more.

Do some research on available franchises if you already have a business in mind or at least a general field. Then do some research on the firm and choose one that fits your own ideas as well as your overall business objectives. Take into account your skills and weaknesses, as well as your previous experience and investment budget. Reduce your top selections to a few and research each one to locate the one that best suits your needs.

2. Conduct Market Research

Just because a franchise has built-in brand awareness doesn't indicate the business is needed in your area. Basic market research can assist you to determine whether there is a demand for your product or service. Examine your neighborhood's demographics, such as household characteristics, income levels, age, marital status, and employment.

Your high-end hotel franchise is unlikely to prosper if you live in an area with a lower median income and low tourism. Make a list of your area's top competitors to get a more accurate view of the demand for your service. Knowing who your competitors have also aided you in selecting a franchise with the best unique selling point in your business.

3. Get an LLC

Being an entrepreneur presents tax issues that are distinct from those encountered in typical employment. As a sole proprietor, you may not be able to take advantage of legal and tax benefits that come with forming a legal company for your business.

Starting a limited liability corporation (LLC) or another sort of business entity protects your assets in the event that you are sued, go bankrupt, or face other difficult circumstances. To start your firm, you don't need to sign a franchise agreement. Choose a name for your business, appoint a registered agent, and complete the necessary paperwork with your state.

4. Get a Franchise Business Plan

To start your franchise, you'll probably need a small business loan. In order to do this, you must present a franchise business plan to potential lenders that illustrate what you hope to accomplish and why they should partner with you to fund your new business. Hiring a franchise business plan writer should be a wise decision because he prepares it according to your needs. In addition to market research and competitor analysis, a professional writer will also pave the way for an investment or loan

A franchise business plan is also required by most franchisors before they approve your franchise. Knowing how to franchise a business will be helpful. Include the following in your business plan: 

• Describe the company
• company
• company's product or service
• Describe your preliminary market research
• Plan how you will manage the business
• Tell us about your management team
• as well as your marketing plan
• and financial projections

Unless you're working with a global company like McDonald's, don't assume that lenders are familiar with your franchise brand. Imagine you are starting a new company from scratch, so describe the company and its products like you would if you were.

Lenders want to know that you're credible and likely to launch a successful business based on your business plan. Include any verifiable data, such as prior industry experience and detailed market analysis. While you want to be optimistic, stay conservative when estimating your revenues.

5. Submit your Application

Most franchisors need prospective franchisees to fill out an application. It's unlikely that you'll be able to submit an application and immediately start your firm. It takes time for franchisors to evaluate each application and determine who is qualified to run one of their businesses. They want to make sure the partnership is mutually beneficial because their brand reputation is on the line.

After reviewing your application, franchise disclosure statement, business plan, and other appropriate documents, the franchisor may invite you to an interview. Alternatively, they may simply approve you for a franchise

6. Select a Location

Look for a place once you've been accepted. You undoubtedly had an idea of where you wanted to open based on your market study and business plan. Choosing the right site is a big element of how to franchise a business.

Look for open spaces in the region by researching new developments and looking through commercial real estate listings. Look for a location with demographics that are similar to your target market. Rents and prospective competitors in the area should also be considered.

7. Employ the Right People

Even if your franchise is modest, you'll still require assistance to run it. Ask the corporate office for advice on interviewing and recruiting the best people for the job while you're in training. Start placing ads on local employment boards, LinkedIn, and other sites in your area.

The franchisor will most likely provide you with hiring documents such as job descriptions, compensation rates, and other information. Consider exhibiting at a job fair or recruiting on college campuses and other major gatherings if you need to hire a significant number of people. If you need help with day-to-day operations, look for persons with similar experience and hire some managerial aid.