1. Understand how franchising works!
2. Know what your own financial situation and objectives are to determine if franchise ownership is a workable option for you.
3. Examine your own motives, temperament, lifestyle preferences, health, family obligations, likes and dislikes to be sure you are realistic about undertaking a particular type of business.
4. Look for franchises that match your requirements and preferences, then compare several similar opportunities to narrow down your choices. Talk with other franchisees to get a hands-on practical viewpoint on the pros and cons of the business.
5. Establish a business relationship with an accountant to review your finances, and a lawyer to review the legal obligations involved in franchising.
6. Contact the franchisor and request the Universal Franchise Offering Circular/ Franchise Disclosure Document (UFOC/ FDD). Carefully examine this with your accountant and attorney to assess the business proposition and its earning potential.
7. Find an appropriate location based on your target market, the competition and capability to meet any site requirements stipulated in the UFOC/ FDD.
8. Do the research on the industry, the market segment and competition in your specific area.
9. Write a credible business plan to present to the franchisor and potential financial lenders.
10. Carefully review the Franchise Agreement with your accountant and lawyer to ensure it matches the UFOC/ FDD. Make sure you understand all the terms, and see if any of the terms can be altered and made more favorable for you as the franchisee.