Franchise ownership is on the rise. For 2023, it is predicted to break the 800,000 mark with a projected 805,436 franchise establishments in the U.S. by the end of the year. If you’re looking at how to become a franchise owner, here are some first steps based on our 40 years of experience at Merry Maids.
Steps to Owning a Franchise
People choose to pursue business ownership for many reasons, but the main reason most people want to become their own boss is the freedom, satisfaction, and flexibility it offers, according to Business News Daily. If you’re one of those people who wants to build something more than you could as an employee, looking into how to become a franchise owner makes sense.
Step 1: What Do You Want Franchise Ownership to Do for You?
A key element of choosing the right franchise opportunity is assessing what you want from being a franchise owner. Are you interested in running the business or creating a job for yourself to replace your salaried income? Do you want evenings and weekends off, or are you committed to working at any time of day? Understanding your goals helps direct you to the franchise choices that are best suited for a long-term, positive experience.
Step 2 - Know Your Financial Position
Every franchise should provide you with a total initial investment overview — one that will likely include a recommendation of how much cash you’ll need on hand as well as a minimum net worth requirement. A critical part of knowing how to become a franchise owner is understanding the financial investment you can make. It’s best to have an understanding up front of your available cash, assets such as a 401(k) you can use to purchase a franchise, and other assets you can use as collateral for a loan if required.
Step 3 - Research Franchises
There is no single method of how to research a franchise, but one great place to start is with Entrepreneur’s Franchise 500 ranking. Franchises have to apply to be ranked on this list and are evaluated based on more than 150 data points, including costs and fees, size and growth, support, brand strength, and financial strength and stability. Here’s a look at the Merry Maids ranking for 2024.
Your research should also look at where you want to operate the franchise. The franchisor will have established territories that are based on certain criteria, but you should also take a good look at the region yourself. As you do, think about who your competitors are and try to gauge their success. Competition often indicates a need for the service, while a lack of competitors might mean the service hasn’t been able to succeed. Just make some notes that you can discuss with the franchisor later on.
Step 4 – Narrow Down Your Franchise Choices
As you become familiar with different franchises, you’ll naturally start to hone in on your top choices. Now you can gather more information about the cost to open a franchise, and also become familiar with the steps to owning a franchise for each brand.
Your next step will be reaching out to the franchises you’ve selected and having an initial, no-obligation discussion with them.
Step 5 – Get to Know the Brand
There’s a great deal of advice available on how to become a franchise owner, and one of the things we suggest is to get to know the culture of the brand. Find out what the brand looks for in a franchisee, explore their values, and see if they’re a match for you as a business owner.
At Merry Maids, our goal is to attract dedicated people who are passionate about serving their customers. Our cleaning service gives our homeowners time back in their schedules to do the things they enjoy. We know that when a franchise owner is truly committed to the customer experience, they are a good fit for us. While cleaning experience and business skills can be taught and learned, having the value of high service is a personal characteristic that comes naturally to our franchisees.
Start Your Franchise Search with Merry Maids
Merry Maids has a 40-year history in franchising. Over this time, we’ve invested in our business model and our franchisee relationships to ensure the foundation we provide for prospective franchise owners is reliable, supportive, and of high value. Start your franchise search with us to see what elements comprise a solid franchise relationship.
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