Paul's Guided Franchise Search Process by Paul Connell, Peerless Franchises, LLC

You may be just starting your franchise business search. Or you may have already waded through hundreds of franchise companies and franchise business information…and become overwhelmed by the whole process.

There are certainly a number of steps and requirements you'll need to tackle to buy the best franchise business that matches your goals, dreams and lifestyle. But it doesn't need to be hard. Take heart — when you work with me as your franchise coach, this will be a lot easier than you thought.

Here's a step-by-step guide, start-to-finish, to how you and I will work together for a smooth and successful outcome.

Step 1: THE PROCESS
Working with Peerless Franchises is available at NO COST to you. Franchisors pay us fees when franchise deals are finalized. We only ask that once we begin a relationship, you understand we will register your name with your preferred franchise opportunity. Registration does not mean you must buy, there is no obligation. It only means that we'll be recognized and receive compensation from the franchisor should you decide to buy a franchise from them.

Step 2: THE BEST FIT
Identify your skills and interests to target an appropriate franchise. Our affiliation with the Business Alliance allows us to share more than 250 franchise opportunities with you. We represent franchisors in many industries. I'm also happy to investigate opportunities not currently covered by the Business Alliance. My goal is to help you find the best fit for you!

• Take my EQ (Entrepreneur Quotient) test to see if you're really interested in becoming a franchisee.
• See Franchising 101 to understand all the ins and outs of owning a franchise.

Step 3: THE FINANCIALS
Determine how much cash you have to invest before you start the process of making a final decision. Down payments vary widely by franchise.

This Initial Qualification Form is used to determine your cash flow, financing and financial expectations before we begin looking fror the best franchise opportunity.

Franchise FAQs may help answer any additional questions.

Step 4: FUNDING
Financing doesn't have to be scary.  There are many ways to find the funding you need.

Franchise funding sources exist in many different forms. This Recommended Funding Resources sheet may help you.

With franchises, be sure to include royalty costs when running your own financial cost analysis. To make sure you understand all of the financial implications of owning a business; franchise or not, I'll walk you through a variety of options when we meet.

Step 5: EXPECTATIONS
Make sure you understand what the franchisor expects of you. Some require a commitment to specific sales numbers, some do not.

Be clear about your own expectations. Make sure you understand and are comfortable with what the franchisor offers you. Do they offer marketing help, bookkeeping, training, etc? Be sure you know what is and is not included in your royalty fees.

Step 6: LEGAL REVIEW
Make sure you are comfortable reviewing legal documents. If you're not, you may want to consider getting legal counsel to help you with the specifics.

Step 7: THE FDD (Franchise Disclosure Document), formerly the UFOC (Uniform Franchise Offering Circular).
Review the FDD provided by franchisors to prospective franchisees, very carefully. This document shows you how the company has been doing and what its likely prospects are for the future. You may even get insight into how happy current franchisees are with the company. Check to see if there is any pending litigation. The FDD is your window into the company structure.

You may also want to review a sample franchise agreement so you can become familiar with the language.

Step 8: DUE DILIGENCE
Talk to other franchise owners. Be sure to ask them key questions about the company. They're a strong resource and you should see them as such. Talk to people who have left the franchise ranks and find out why.

Here are the key questions to ask a franchisee once you've made an appointment with him or her:

• Why did you select this franchise over others?
• What was your career prior to purchasing this franchise?
• Did the franchise deliver on the initial training and support they promised?
• How robust was the training: did it cover the operating system only or did it prepare you for a competitive climate?
• Can you tell me about any problems you've had regarding the franchise, site or your success…and how the franchisor responded?
• What's your current relationship with the franchisor?
• How are you feeling about this industry and its future?
• What's the level of support you receive from this franchisor?
• Have you been satisfied with the support, advertising, guidance, and accessibility provided by the franchisor?
• Do you play a role in bringing new ideas to the franchisor? How are those ideas received?
• Can you recommend any other franchisees or former franchisees that I could speak with?

Here are some questions for a former franchisee:

• Can you explain why you left the franchise?
• Did you encounter any roadblocks or problems in selling your franchise?
• Or, if the franchise was terminated, were you satisfied with how it happened?
• Would you consider buying a different franchise?

Step 9: THE HARDWARE and "THE SOFTWARE"
If there are capital investments to be made, find out what they are and what these items cost. Find out, too, if you're required to buy them from the franchisor. Be sure you're being charged fair market rates. Also know if additional capital expenses will be needed later. Better to know that in advance. 

Understand, too, what the franchise fee covers. Does the fee include training, opening marketing, etc? The fee might be low if these services are left up to you.

Step 10: THE FINAL PURCHASE
After closely working with us through all of these phases, you should anticipate a smooth closing of your purchase and an exciting opening day of your new business!

At every step in this process, you can count on me to be a responsive, reliable resource for all the franchise business information you need.

Ready to find the right franchise for you?
Contact us now for a FREE initial consultation to discuss your franchise opportunities and best franchise for you.