Thinking about owning a franchise? Learn what requirements you’ll need to meet as a new franchisee.
So You Wanna Buy a Franchise…
You’ve dreamed of opening your own business, being your own boss, kicking ass, and taking names. And rumor has it there are advantages to buying a franchise compared to starting a business from scratch, and you wouldn’t be wrong to believe the buzz. Buying into a recognizable brand with an established reputation and a clear track record of success is kind of a no-brainer.
But before you dive into this relationship, there are things you should know. Choosing the right business to buy is key to your success, so ask yourself if you have anything in common. The best franchise for you will match your interests, values, skills, financial expectations, and budget for buying in.
And guess what? They want to know all about you, too. A franchisor has a brand, a business reputation, and a financial track record to protect, and they don’t want to take up with just anyone. Before they put a ring on it, they have some franchise requirements for you to meet. Of course, these vary from franchise to franchise, but there are some common requirement hoops you can expect to jump through.
What You Bring to the Party
The nitty-gritty of franchise requirements differs depending on the brand you’re interested in. Buying a franchise is a two-way street; you’ll pay the franchisor for the right to run a business based on their established brand, using their proven business plan, for an agreed-upon period. In addition, you’ll pay royalty payments and sometimes ad or marketing fees to the franchisor. The franchisor has an interest in seeing you succeed, so they often provide support like helping you find a prime location, training you and your employees, and creating marketing and advertising campaigns. They want to make sure you can go the distance. Let’s check out some common requirements.
Net Worth: The higher the initial investment required by a franchisor, the bigger your net worth will need to be.
Cash on hand: You’ll need money to cover the costs of starting your new business, plus living expenses while you ramp up to break-even. If you don’t have the cash burning a hole in your pocket, you’ll need to arrange financing. There are different types of loans available for new franchisees, and the SBA is a good place to start.
Credit score: A strong credit score is necessary for most franchisors. If yours is less than stellar, learn how to improve your credit score here.
Skills: Certain industries require certifications, degrees, or years of experience. If this is the industry for you and you don’t have those needed credentials, go out and get them.
Business experience: Having a background in a particular area of business can be beneficial in some industries since it demonstrates knowledge and preparedness. But general business or management experience is also desirable. As the boss, you’ll potentially be overseeing employees, interacting with customers, and overseeing various aspects necessary to keep the lights on.
Depending on the franchise, there may be additional or different requirements, but these are good ducks to have in a row regardless. Not all franchise brands make the process easy, and some are downright ornery about who they decide to work with. Let’s see who’s breaking the mold with a different approach.
The Scissors & Scotch Difference
If you’re looking for a business opportunity with a twist, Scissors & Scotch is the franchise for you. A modern-day barbershop with drinks, you need be neither a barber nor a bartender to join the party.
But we have standards, too. We don’t swipe right on just anybody. However, we make the process as simple and easy as possible. Our franchise process is clearly laid out and it takes about 10 minutes to fill out an application. And we won’t hold you back or tie you down; if you want to own more than one location in a city, you’ll be our new favorite person. Let’s grow together.
Scissors & Scotch and you. Make it official. Apply Now.