How to buy a franchise?

Edward Studdert-Kennedy from the eDivert Franchise Network explains the most common steps to buying a franchise.

Running a franchise from home can come with a lot of distractions

 

So, you’ve decided to buy a franchise.

What are the usual steps?

First of all, work out if it’s the right thing for you. If you’re at the stage of looking for a franchise to buy, you’ve already decided to run a business for yourself. Hopefully you’ve thought about what sort of thing you’d like to do.

There are a few basic questions you will have hopefully asked yourself

  1. What’s my skillset – can I do the job?
  2. What can I afford to spend?
  3. What’s the market like? Do others make money doing it?
  4. How quickly do I need to get earning?
  5. What sort of lifestyle will the business offer me?

Let’s assume you’ve answered these questions and chosen a franchise. What are the next steps?

In general terms of buying a franchise, this is the order that things often go in

  1. Ask for a prospectus
  2. Request financial projections
  3. Maybe attend a webinar or discovery day
  4. Ask for training and support overview
  5. Ask to see the franchise agreement
  6. Speak to other franchisees
  7. Sort out the finances
  8. Find a specialised Franchise Solicitor to look at the agreement
  9. Sign the agreement and get going!

This list is not exhaustive, or necessarily in a particular order.

Let’s have a look at how the process normally works at the  eDivert franchise network

  1. Request a prospectus by filling out the form on our webpage or clicking the button in this article. The Prospectus gives a basic outline of what eDivert does, how the franchise network works together, potential earnings, etc.
  2. Have an initial conversation over the phone with someone from eDivert HQ. Feel free to ask us any questions.
  3. Fill in the Non-Disclosure Agreement (NDA) that we send to you when you request our financial projections or a copy of the franchise agreement. Nearly every franchise will ask you to fill one in. Our business model is confidential and needs to be protected for our franchisees.
  4. Read through the Financial Projections that we sent to you after receiving the NDA. These will help you plan your personal and business finances for the first 3 years of growing your business.
  5. Attend an eDivert Discovery Morning or a Discovery Webinar. In these presentations, we explain more about our background and experience, the eDivert model, how the network shares its work, what training you will get etc.
  6. A Discovery Morning gives you the chance to meet us, other potential franchisees and existing eDivert franchisees. There is a presentation on eDivert and it is a good opportunity to ask questions in person.
  7. A Discovery Webinar is a live online presentation about eDivert, where you can ask us questions and learn more about the business.
  8. Read through the Draft Franchise Agreement to ensure you are happy with the terms and to ask any questions you may have. If you want a solicitor to go over the agreement for you, make sure you use a specialist Franchise Solicitor who knows the specifics of franchising. We have a separate article on why you shouldn’t just use any solicitor.
  9. Speak to a franchisee. Our franchisees are happy to answer questions on their experience of eDivert and their plans for the future.
  10. Apply to buy in to the eDivert franchise.
  11. Fill in the Personal Information Form: We understand that you want to do your due diligence to ensure the eDivert franchise is right for you. At the same time, as a franchisor we need to make sure that you are right for our franchise network. The Personal Information Form will give us information about your background, skillset and motivation to purchase an eDivert franchise. One we have received your Personal Information Form, we will inform you if we will if we accept your application. Often before filling in this form, we have had already had several conversations with you and a chance to get to know you, so if for any reason we think that you are not suitable, we will normally let you know at an earlier stage.
  12. Arrange Finances. Speak to eDivert HQ if you need help with financing your eDivert business
  13. Incorporate your company. You will have your own limited company trading under the eDivert name and brand. We can help you to register your company and get set up.

Once this is all sorted, you can begin your training. You will also receive your eDivert welcome pack with marketing materials, eDivert office signage and personalised business cards.

You will have access to the eDivert network of franchisees to share your work and you will enter your customers on the eDivert CRM (Customer Relationship Management) system to show that they are uniquely yours.

Find out how you can build up your eDivert business.



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