While there are numerous ways to become a business owner, entrepreneurs can enjoy unique opportunities by purchasing a franchise.
Operating local franchises of a larger company has many advantages, including attracting customers with brand recognition, benefiting from the company’s marketing efforts, and utilizing the company’s proven, streamlined operating processes. Depending on the company, running a franchise also can include receiving in-depth training that can be useful for any kind of business enterprise.
Becoming a franchise owner, however, often is not a simple task, and there are many factors to consider when pursuing this path.
■ Choose a brand that interests you. Running a business can be life-consuming, so it is important you enjoy your business so you don’t become miserable or burned out.
■ Evaluate the risk of different franchises. Some smaller companies might be less costly to invest in, but they might not offer as many benefits as a larger corporation with national or international resources. Factors that can influence risk include your liability for the franchise property, how well known the company’s brand is in your area and how much training and additional support the brand will offer once you become an owner.
■ Identify programs to expedite the process. Some companies offer programs that can accelerate the process of becoming a franchise owner, especially if you already have a connection to the company. For instance, McDonald’s offers training programs for crew members to work their way up to owner-operator positions. It also offers a Next Generation program for the children or spouses of McDonald’s franchise owners to become owner-operators.
■ Research the application process and financial requirements. Some companies have highly competitive application processes for people outside of the company, which can include strict financial requirements. McDonald’s application requirements typically include proving liquid assets of at least $750,000.
■ Complete corporate training. It is difficult to run a franchise without a comprehensive understanding of the brand’s operations. Most companies require future franchise owners to undergo training.
At McDonald’s, training includes working for free at a restaurant and serving in every position to thoroughly understand every aspect of the company. I worked 39 hours a week for 15 months.
■ Join a relevant association. The McDonald’s Greater Las Vegas Operator Association includes 25 franchisees who own nearly 80 percent of McDonald’s 100-plus Southern Nevada restaurants.
Kellie Vander Veur is an owner-operator of a McDonald’s franchise.