When I first meet a new franchise candidate, some of them are surprised to learn that they won’t be able to open their new business right away. The franchise launch process varies, but I generally tell candidates to expect a 6-18-month timeline. That’s a significant range, and your particular timeline will depend on factors such as your financial or job situation, the franchisor you choose, and the type of franchise you want to open. If you have a short financial horizon or other reasons for wanting to move quickly, you can tweak those factors to come down on the shorter end of the range. Here’s how to do it.
Know What You Want
Before you start looking at franchises and franchisors, do a self-assessment. Figure out why you’re interested in franchising, what your strengths and weaknesses are, and what kinds of franchisors or business models most interest you. Here are just a few of the questions you can ask yourself to help with this process:
- Am I doing this more for the freedom of being my own boss, or for wealth-building?
- Do I need my franchise to serve as my retirement plan?
- Do I want to own just one franchise location or several?
- What’s my level of business experience? Am I better at strategy or operations?
- Do I want this to be my full-time job or a side hustle?
- What size investment can I afford?
When you start the franchise selection process knowing what you want, you can more easily sort through the thousands of options available to you. You can quickly eliminate any options that don’t fit your goals and move on to next steps with the franchises that really interest you.
Do Your Homework
Your franchise launch process will also be shorter if you’ve done some research ahead of time. If you come to the process with a reasonably good understanding of the franchise industry, you won’t have to burn time learning foundational information or asking a lot of basic questions. By knowing what to expect at each stage, you can make sure you have everything lined up on your end ahead of time. Feeling short on knowledge? We’ve got you covered. Read through the Empowered Franchisee blog, visit our YouTube channel, listen to our podcast episodes, or try one of our recommended resources for a franchising primer.
Bonus: franchisors love a knowledgeable candidate. They only have a certain number of franchises to sell, and they want to award them to candidates who will be good business partners. When you do your homework, you show franchisors that you’re taking this opportunity seriously and care about doing it right. That gives you an edge over candidates who are less diligent.
Line up Your Funding
More than anything, lack of funding will torpedo a franchise purchase. Regardless of how goal-oriented or knowledgeable you are, if you don’t have the money, you can’t buy the franchise. When you go into the process with your finances in order and your funding ready to go, you’ll avoid the biggest source of delays and failed transactions.
As you line up your funding, remember that you’re not limited by your cash on hand. The federal government, banks, and even franchisors themselves offer many financing options tailored to the needs of new franchisees. And don’t forget that you need money for your franchise fee, your startup costs and operational runway, and paying your personal bills.
Be Responsive
As you work your way through the franchise launch process, you’ll encounter plenty of opportunities for delay, many of them related to the back-and-forth between you and the franchisor. You’ll need to provide various types of documentation, fill out forms, sit for interviews, and conduct due diligence visits.
Before you start the process, make sure you have sufficient time in your schedule to handle all these milestones in a timely fashion. You can shave weeks off your timeline simply by turning your paperwork around quickly and scheduling appointments promptly. As with doing your homework, responsiveness comes with a bonus: franchisors love it, so it gives you an edge against other candidates.
Choose an Appropriate Franchise Type
The type of franchise you choose probably has the biggest single impact on your launch timeline. As you might expect, home-based franchises are the quick-launch option. With no need to rent or buy real estate or furnish a storefront, you can usually open a home-based business 2-3 months faster than a brick-and-mortar one.
Determined to buy a brick-and-mortar franchise? You can still shorten the launch process by choosing a business model that doesn’t require a lot of specialized equipment or special inspections and certifications. For instance, a retail shop will have a faster setup than a restaurant or a health care facility.
As a third option, you might want to consider a turnkey franchise. Note that this is different from buying an existing franchise that someone else has been running. A turnkey franchise is new, but the franchisor has taken care of all the setup. You just have to turn (the) key and open the door. This option will cost you a lot more than a traditional franchise but can be a worthwhile tradeoff if you’re cash-rich and time-poor.
Use a Consultant
When it comes to buying a franchise quickly, there really is a magic bullet: use a consultant. My co-consultant Lauri and I can help maximize the efficiency of every single one of the above steps, from self-assessment to opening day. We are franchise owners, so we’ve not only helped others through the process – we’ve been through it ourselves and can help you avoid pitfalls and delays. We also work from a pre-screened list of franchisors, so you don’t waste time on businesses that are unsuccessful or a poor match for your goals. And we have established relationships with franchisors, which can mean a shorter application process for you. Best of all, our services are free to candidates. You literally have nothing to lose. Want to give it a try? Book some time with one of us – we can get started with just a 20-minute call.
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