Before you can know what business is the right one for you, you must be clear about who you are and what you are. Your Personal Franchise Analysis creates an inventory of your super powers and blind spots, likes and dislikes. Your answers will paint a picture of all the skills you do (and don’t) bring to the table. Different franchises require different super powers (skill sets) and you need to understand how your super powers align with a specific franchise model.
Build Your Franchise Business Model.
Your business model is a detailed picture of your perfect fit franchise. It includes all the details of a business that are important to you. Using your Personal Franchise Analysis from Step 1 and your Business model built by your franchise coach, you can start to narrow down options and see which types to cross off your list.
Begin Due Diligence with Franchises.
Armed with the results of your Personal Franchise Analysis and your Franchise Business Model, you are now ready to begin the process referred to in the franchise industry as “due diligence.” In this step, your franchise coach introduces you to a handful of franchises that she has selected based on your personal analysis and your business model. These franchises may be a fit based on your personal, financial and lifestyle goals as you outlined them in Steps 1 and 2.
Continue Due Diligence with Franchisees
At this stage, you are well into due diligence and are learning the different aspects of the franchises that you are investigating. You now have a better understanding of the different business models, their competitive advantages, and value proposition. In this step, you enter the “validation” phase of due diligence where you will speak with current franchisees of the business models. No one understands the day-to-day challenges and opportunities of running that particular business better than the franchisees. Speaking to franchisees willbe the most invaluable part of your research in helping you determine whether a franchise is the right one for you or not.
Fund Your Franchise.
As part of building your Franchise Business Model, your franchise coach will review your financials and your desired investment range for the business. She will introduce you to a franchise funding partner to begin the process of figuring out how to fund your franchise once you have found it. There are numerous options, some that may be suitable for you and others that may not, based on an analysis of your specific financial situation.
Close out Due Diligence – Attend Discovery Day & Make A Decision.
As you get to the end of the validation phase where you interview current franchisees, the brands you are investigating will extend a formal invitation to you to meet with them at an event known as Discovery Day. This final step marks the end of your due diligence process. Discovery Day are held at a franchise’s corporate headquarters. It is an opportunity for a company to interview the potential candidate (you) and determine if there is a good fit.