Starting a Small Business with a Franchise

Interested in opening a franchise? This week, we feature a beginner’s guide to some of the activities you will need to complete before you start, including reading a FDD and interviewing a franchisor.

Successful franchisees

It cannot be stressed enough: research is important. You must do your homework. Successful franchisees conducted careful market research, developed a thorough business plan, including marketing, asked advice from trusted financial and legal professionals, and in some cases had some prior work experience.

Where do I start?

The library and the Internet – read directories, articles, and books. Check out trade shows in your area. Talk to people in the business. Here’s a list of resources to get you started:

Books

• The Franchise Opportunities Guide
• The Executives’ Guide to Franchise Opportunities
• Bond’s Franchise Guide
• The Franchise Annual
• Franchise Handbook

Business publications:

• Inc. (www.inc.com)
• Entrepreneur (www.entrepreneurmag.com)
• Franchise Times (www.franchisetimes.com)
• Franchising World (www.franchise.org)
• Franchise Update (www.franchise-update.com)
• The Wall Street Journal (www.wsj.com)
• USA Today (www.usatoday.com)
• The New York Times (www.nytimes.com)

Other resources:

• FranNet is a franchise consultation company that can point entrepreneurs in the right direction (www.frannet.com/)
• IFE (International Franchise Expo) is sponsored by the International Franchise Association (IFA: 202-628-8000 or www.franchise.org) and is the world’s largest directory of franchise companies
• The U.S. Small Business Administration and Small Business Development Centers (SBA: www.sbaonline.sba.gov/sbdc/)
• Federal Trade Commission (www.ftc.gov/bcp/menu-fran.htm)
• Small Business Administration (www.sba.gov)
• International Franchise Association (www.franchise.org)
• Entrepreneur Magazine (www.entrepreneurmag.com)
• Franchise Update Magazine (www.franchise-update.com)
• IFA Franchise Opportunities Guide (www.franchise.org)

Next time, we’ll present ways to evaluate a potential franchisor.