How Long Does It Really Take to Open a Franchise?
“Are we there yet?” Anyone who has ever taken a long car trip with small kids is more than a little familiar with that question. In many ways, this is the same dynamic we face when we plan to open a franchise. Once people decide that they want to get their own piece of the American Dream by owning and operating a franchise business, they want it to happen now!
The truth is there are a few time-consuming things that have to get done before the business is ready to open—and rushing these things might be a very bad or expensive idea. Let’s take a look at some of the major milestones you must pass before your new franchise is actually ready to open for business.
Key steps before you open your franchise
1. Do you really want to buy a franchise?
This is the beginning of the process. You have made up your mind that you want to get your own business, be your own boss, control your destiny and live a life of freedom. Of course you don’t yet have any solid idea of what the franchise of your dreams might be, so you need to embark on a journey of discovery. We know exactly how long it takes to reach this milestone—your whole lifetime up to now.
2. Choose your franchise
Just like an explorer, you set out on a journey into the unknown—finding the right franchise for you. Perhaps you’re starting with a focus on some product or service you like and that you think would create the foundation for a good business. You start researching franchises, probably online. You find that there is a ton of information—so much, in fact, that it is almost impossible to figure out how to organize or sort through it.
You finally decide to start contacting individual companies that seem like they might work for you, based on the service or product they offer. This portion of your journey can be as short as a month, but it can also go on to infinity if you make the mistake of sailing your boat in circles during this stage.
3. Fill out initial forms and paperwork
If you’re lucky, you’ll be smart enough to give some thought to what your life would be like as a franchisee in each of the businesses you are checking out. That will help you avoid making a huge mistake of entering a business you’d be miserable in.
Once you have completed your investigations and have determined the right franchise for you, you’ll need to complete all the initial paperwork to become an official franchisee. This part of the process usually involves contract reviews, territory analysis and selection, and preliminary finance commitments. There is definitely a lot of work to be done here, but it can usually be completed within a couple of weeks.
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4. Select a location
The biggest variable in determining how long it will take from picking a franchise to actually opening for business is selecting your real estate location. Some franchises are home-based, and for them, this step takes no time at all. Others are businesses that can go into a variety of locations, so that real estate selection and lease completion is relatively easy and fast—say a month or two.
Then there are franchises which have very specific location needs and/or space requirements, often needing sites that are in high demand with relatively low availability. For this type of franchise, it can easily take six to 12 months, or even longer, to find the right site with the right financial terms that will give the business the best possible chance for success.
As frustrating as delays may be for a location-dependent franchise, cutting corners on either the site quality or the lease terms can put you in a position that will limit your earnings potential. This is an area where you have to take the time necessary to get it right and to not sweat any delays. If that’s not going to work for you, then pick a different franchise opportunity.
5. Set up shop
Most franchises require some degree of construction and build-out for your location, even if it is simply setting up an office in your house for a home-based business. For other franchises, build-out can be an elaborate process of selecting a general contractor; obtaining permits and variances; ordering equipment, furniture, and other leasehold improvement supplies for your facility; and a myriad of other things.
Typically, the more complicated the build-out, the more assistance is available from the franchise company. But count on at least one to three months for this process for any site-dependent franchise.
6. Training
At some point you are going to have to go through the franchise company’s new franchisee training program. Training can usually be completed while you are doing other things, like working on your real estate needs or preparing your grand opening marketing plans. Most training programs last from one to three weeks, though that can be much longer if you’re also required to get operating experience at an existing unit (which can be a fantastic learning experience).
Time to open your new franchise
Now you have come to the glorious day when your new franchise opens for business. Depending on the type of franchise, it has taken somewhere from two to 12 months on average for you to get your business open. The delays may seem interminable while you’re going through them, but the pleasure of opening will make you quickly forget those times as you focus on your new business and customers.
RELATED: Buying a Franchise vs. an Independent Business: What Are the Pros and Cons?
About the Author:
Jeff Elgin is the CEO of FranChoice, Inc., a national network of franchise referral consultants in the United States. Elgin has more than 20 years of franchise industry experience on both the franchisor and franchisee side. A noted franchise expert, consultant and speaker, he is nationally recognized for creating effective franchisee recruitment systems.
