What You Need to Know About Opening Your First Franchise
October 21, 2019
Are you interested in owning your own business? One of the most lucrative ventures for entrepreneurs today is buying a franchise. Buying into a franchise is a great move because unlike a startup, a franchise is an established business that comes with its own resources and branding. There are currently over 700,000 franchises in existence in the U.S., so there are plenty of opportunities to own a franchise in a variety of industries, including pizza franchises.
As a first-time franchisee though, there are many factors to keep in mind before you sign the dotted line including:
Costs: Every franchise system comes with unique costs in order to get started. This includes the franchise fee, cost for rent or mortgage payments, equipment, and supplies. Before deciding on a franchise, make sure you have enough capital to handle all these costs.
Franchisor Requirements: Just like each franchise has its own startup fees, many have other requirements they want potential franchisees to meet. These can include net worth, available cash, experience as a business owner, and more.
Franchise documents: Two important documents that you should be provided with by the franchisor are a franchise disclosure document (FDD) and a franchise agreement. These documents are vital to understanding what is expected of you as a franchisee and the commitment you are making to the brand. If a franchisor does not provide you with these documents, you may want to steer clear.
Location selection and training: Once you have signed on with a franchise, you will need to determine a site for your location, hire and train your staff, and get everything in order for opening day. Most franchisors will work with you to get all these items in order.
Would you like more information about owning a pizza franchise in your community? Reach out to us at Rosati’s to learn more about our exciting franchise opportunity!