If you’re considering investing in a franchise, you might be asking yourself: how long will this process take? From the moment you make your initial inquiry to your first day on site, it typically spans anywhere from 3 to 9 months. Understanding the key steps involved can help you navigate this timeline effectively.
Initial Inquiry: The journey begins with your inquiry. It’s essential to understand who you’re communicating with and the specifics of the franchise opportunity. We typically hold multiple phone calls to share baseline information about the business, ensuring you have a solid foundation to build upon.
Financial Model Review: After the initial discussions, we schedule a detailed meeting to walk you through the financial model. This step is critical, as it equips you with the knowledge to understand projections and numbers. We’ll teach you how to read cash flow tools and profit and loss (P&L) statements, as well as how to evaluate the business effectively. I’ll also provide tailored suggestions to optimize your potential returns.
Due Diligence and Legal Preparations: Once you feel confident that this franchise is the right fit for you, we’ll guide you through the due diligence process. This includes obtaining relevant legal and financial advice and ensuring that you have the financial capabilities to move forward.
Onboarding and Location Search: The entire process, from your first meeting to becoming a franchisee, generally takes around 8 weeks. During this time, we prepare to start searching for suitable locations post-onboarding.
Why Location Negotiations Come Later: One of the reasons we don’t negotiate locations before you become a franchisee is due to this onboarding period. Once we start negotiating with landlords, we need to move quickly to secure the best possible site for your new business. By waiting this 8 week documentation period, we risk losing the site & damaging landlord reputations.
The Exciting Fit-Out Phase: Now, onto the fun part: the fit-out! Depending on the business, you’ll sign your lease with a little "head start." This means you can begin fitting out and building your location under the guidance of the franchisor. We work together to create a calculated timeline to ensure you’re not incurring rental costs during the build phase. While every location is unique, it’s wise to have some additional working capital on hand just in case. Ideally, you’ll complete the fit-out so that you can start running your business right as your lease officially begins.
Embarking on Your New Business Journey: With the fit-out complete and your business ready to launch, you’re set to embark on an exciting new journey! This is the moment you’ve been preparing for, and it’s where the hard work pays off as you step into your role as a franchisee.
I hope this overview provides valuable insight into the first half of your journey to owning a franchise. Each step is designed to ensure you’re fully informed and prepared to make a successful investment. If you have any questions or are ready to take the next step, don’t hesitate to reach out!
Katie Missingham National Sales & Marketing Manager
DC Strategy
t: 1300 682 657 | m: 0436 812 540
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