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How Do I Start a Franchise?

Keep in mind these requirements when you consider making the move from business owner to franchisor.
December 22, 2003
URL: http://www.entrepreneur.com/article/66178

Q: I've got a great business that I think would be perfect for franchising. How do I get started as a franchise company? What kinds of advisors will I need and where do I find them? Is there a good source of information for me to start with?

A: Congratulations on building a successful business. It is exciting that you are considering using franchising as a method of expanding your brand and operations. You have some great questions so let's discuss each in turn.

First of all, one of the best starting points for researching this idea is the International Franchise Association (the IFA). The IFA is the industry trade association for franchising and has a host of resources that you can access to get started in this process. You can find the IFA and start your search by going to their Web site .

Starting a franchise company is not an easy or inexpensive process. There are a number of requirements you will have to meet and a few other things that, though not legally required, are also essential. These requirements include:

The final thought I'll leave you with is a word of caution. Most honest advisors in the franchise business will tell you that you'll need at least $500,000 to $1,000,000 in initial capital to even think about starting a franchise company. You will probably work harder than you ever have for at least 2-3 years before you even start to make any money on your franchise operations, and it could easily be 3-5 years.

The rewards and satisfaction of building a successful franchise company are incredible but so is the price that you'll pay to reach this goal. Make sure that you want to pay the price before you start this process and then go forward with realistic expectations and you should do fine.