Franchises are businesses that are chains and are sold to give co-ownership to the franchiser and to a private individual or company that will operate the particular franchise. Some examples of franchise chains include McDonald's, Subway, Holiday Inn and Exxon gas stations. In some cases the individual that purchases the franchise will gain sole ownership, but in most cases owners pay portions of the profit back to the franchise company. In order to open a franchise, you must consider several options.
Instructions
1. Research the possibilities and determine what kind of business franchise you would like to open. It is important to consider your location, what businesses the area lacks and how you could make the most money. Ask questions and contact other franchise owners to find out their thoughts and experiences.
2. Apply for the franchise that you wish to own and operate. Many companies allow you to apply online to get the process started. In some cases, you will already need to have your business site or building in place to apply.
3. Hire an attorney to review the franchise agreement if you are approved by the company. According to Entrepreneur.com, lawyers can also help you set up the legal entity, corporation or partnership to operate your business. By having a lawyer review the agreement, you will ensure that it is fair and you will understand any terms or hidden costs.
4. Pay the franchise fee and get your business and property insured. Upon completion and being insured, you can interview prospective employees and begin to set up your business. Some franchise companies provide the business operation tools, such as registers and ovens, as a part of the fee, but others do not. After setting up you will be ready for business.
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