Starting a franchise business is easy in principle. In practice, however, franchises are typically expensive to start up and carry high overhead costs.
“how to start a franchise business with no money” is the most common question that people ask when they want to get into business. This article will provide you with tips on how to start a franchise business without any money.
Franchising appeals to a large number of individuals. It may be a road map to lucrative company ownership if it’s suited for you. You may invest in a fantastic concept or a profitable firm with a proven track record and a strong brand while still running it yourself.
A franchise, according to franchise expert Joel Libava, is “a sort of business owned and run by people (franchisees), but branded and controlled by a much larger—usually national or multinational—company (the franchisor).”
Having a franchise implies you’re jumping on the bandwagon of an already successful concept. Of course, beginning and maintaining a franchise, like any other company, comes with its own set of problems. Even with the company plan and brand spelled out for you, location, recruiting, and management will need as much thinking as any other form of business. The loss of control (you are ultimately controlled by the franchisor) might be a hardship for some entrepreneurs who are passionately independent.
So now you know that if you want to be a franchisee, you’ll need to discover the suitable franchisor. You want a well-known brand and a corporation that is known for its franchisee support. How are you going to get there? 
The following are the six stages to become a franchise owner:
- Be aware of your financial situation. The first thing you should know is that there is always a franchise cost up front, and franchisors sometimes have financial restrictions for who they would let to start a franchise. Examine your own money and assets so that you may begin exploring for options that fit your budget.
- Do your homework, as you should with so many things. A Cafe Yumm franchisee, for example, must have a net worth of $500,000. Look elsewhere if that isn’t where you’re at financially. You don’t want to spend time thinking up your plans to launch a certain franchise just to discover that it isn’t a suitable match when you read the tiny print.
- Make contact with the franchisor as well as other franchisees. You want as much knowledge and direct experience as possible about what it’s like to run this brand. There’s no alternative for face contact with those who’ve already been there and done it. Joel Libava suggests asking franchisees one important question: Would you do it all over again?
- In most cases, both the franchisor and the franchisee will be interviewed. Conference calls, visits to their offices, and sit-down meetings might all be used to do this. Depending on the franchisor you pick, the aim will be for you and the franchisor to go through the finer points and evaluate if the franchise is good for you. Take note of how much help the franchisors give throughout the setup process and whether or not they provide continuous training.
- Make your investment and sign the franchise agreement. There is a franchise fee to pay up front, as well as other investment costs such as kitchen or cleaning equipment. This is the starting point for everything.
- If everything is going well, you should renew your franchise agreement when it expires to keep your company. These contracts are usually five to ten years long.
Franchises are divided into many categories.
We’ll look at a few of the sectors a franchisee may choose from now that we’ve covered the basics of starting a franchise. We can’t cover everything since there are over 3,000 franchised businesses in the United States, but let’s look at some of the most common kinds of franchises accessible.
- Restaurants. This is, of course, what comes to mind first, simply because these franchises are ubiquitous: McDonald’s, Jack in the Box, Subway—these are all very popular brands. In fact, Subway has the most franchise units in the United States, with 26,000 as of 2014. Its appeal has been fueled by a low failure rate and a modest starting charge. If that interests you, I’ve provided two of our free example franchise restaurant business plans in the resources area below.
- Entertainment and instruction for children. Tutoring institutions like Mathnasium and Kumon, as well as play locations like Adventure Kids Playcare, are examples of these franchises. In 2015, Entrepreneur magazine named this industry as one of the top franchises to watch.
- Maids and handyman services are examples of personal services. A good example is Merry Maids. Unlike many other franchises that offer a product or an experience, this one will rely significantly on its personnel and, as a result, on its recruiting methods.
- Gyms and numerous studios for particular activities such as Pilates are examples of fitness venues. Anytime Fitness is a fantastic example; Forbes placed it fifth among the finest franchises with an initial investment of more than $150,000.
- Industry of the spa and beauty. Supercuts, a hair salon franchise, and Massage Envy, which offers a range of services such as massage and spa treatments such as facials, are two examples of this kind of business.
Resources for franchisees:
We have a lot of information for you to go over as you continue your investigation into franchise ownership.
Sample business plans include the following:
Our free example business plan library, which offers numerous distinct possibilities for franchising business plans, is one of our most valuable tools on our site. These are an excellent way to get your feet wet and see how a franchise appears on paper, from the mission statement to the financials:
Articles:
We have a franchise category page where you can view new franchise-related stuff as it becomes available. To get you started, here are a few articles:
Video:
Joel Libava, the self-proclaimed “Franchise King,” talks with Palo Alto Software CEO Sabrina Parsons on how to discover the ideal franchise for you:
The route of the seasoned
While coming up with a completely new concept has its merits, there’s no reason you can’t profit from a tried-and-true strategy, as many franchisees are currently doing. A franchise company may be a lucrative venture with careful strategy and execution.
Have you ever considered starting a franchise? What factors did you consider while selecting your brand and franchisor? Send us your tales through Twitter!
Watch This Video-
The “how to create a franchise business plan” is an article that will teach you how to start your own franchise. It includes detailed steps on how to create a franchise business plan.
Frequently Asked Questions
Do franchise owners make money?
A: The franchise owner is not necessarily the person who runs a franchise. You might be wondering how much money the person running it makes, and that would depend on what type of business structure they have in place for their particular store or restaurant.
How much money do you need to start a franchise store?
A: When looking at the start-up costs to open a franchise store, one must consider various factors. These include location, size of location and cost of rent in that area. Additionally, there are also initial expenses associated with opening up shop for business such as security deposits and inventory storage fees.
Is a franchise a good idea to start a business?
A: A franchise is a good idea to start your business with, but its not always the best option. Franchises are typically easier and more profitable to get started on, but they can also be restrictive when youre both in charge of making changes and growing as an individual company. The key is understanding what type of opportunity works for you before starting anything else.
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