Here's how you can navigate starting your own franchise business as a mid-career professional.

One of the aspects that makes franchising great for some people, can also make it terrible for others. That aspect is control and established systems. The franchise business model allows a franchise owner to step into a proven business model that they can replicate with fairly predictable outcomes (assuming they follow the prescribed systems). For individuals that struggle to work within the confines of established systems and need complete independence, the franchise model is not going to be a good fit for them. There is such a thing as being too entrepreneurial for franchising and that's okay. Franchising can provide a great pathway to scale at a quicker pace but it has to be the right fit for the individual.

When considering becoming a franchisee, do the research. First and foremost, you should have a passion for the category of which you are seeking, whether it is a particular product or service. Then inside that category, research which brands align with your values and interests. Be confident that the brand you choose will be able to provide support to the level you will require. If you are a first time franchisee, will that brand take the time to develop your business with you? You are buying a proven brand and everything that comes with it, make sure it is everything you want, because it will be easier to comply to all the brands standards and requirements.

Starting a franchise business as a mid-career professional involves several crucial steps. Firstly, conduct thorough research to identify suitable franchise opportunities aligned with your interests, skills, and financial capabilities. Evaluate market demand, competition, and the reputation of franchisors. Once you've narrowed down your options, carefully review the franchise disclosure document (FDD) to understand the terms and obligations. By following these steps and staying committed to your franchise business, you can navigate the process successfully and achieve your entrepreneurial goals as a mid-career professional.

In my experience, while you don’t need to have an absolute passion for the industry, your business should align with your beliefs, values and lifestyle. An example might be if you work out everyday and eat super healthy, you’ll probably not want to open a donut shop but you might consider a fitness studio or massage therapy franchise instead. At the end of the day, it’s important that you do your due diligence, ensure there is a need for your product or service in your community and be sure you validate what you hear from the franchisor or their representatives. Talk with past and current franchisees to be sure the support promised is provided.

I'm going to assume that you've decided franchising is for you as if you're a mid career professional it likely is. So ask yourself questions. Do I want to go to a place of work or work from home? Do I want to work with others or by myself? Am I good at Direct sales or not? Do I want a hands on or management business. Do I want a product or service based business? Do I want an established brand or a new brand? What skills do I have - list them? Do I want a B2B or B2C business? With these answers & more, you can filter down the options. Research them online YT, website, Instagram etc. Whittle down to 3/4 options. Get the prospectus & engage with the process. You'll pick the one that the people, operation, branding best aligns.

It's critical that you don't jump at the first brand you look at. First assess who you are and what fits your skillset and goals. Work with a franchise consultant who analyzes franchises every day and understands the pros and cons of each industry/type. Look at multiple players within the same industry. It's important to understand what the competitive advantages are of the brand you're considering and you might find there is a better option out there.

Para uma pesquisa alinhada com seu perfil e expectativas, busque pelas feiras de franquias. Nestes eventos você encontra variados nichos e todo tipo de franquia atuante. Ademais, para participarem, as empresas preenchem alguns requisitos formais, o que garante seguran?a ao candidato. Também é possível levantar informa??es do investimento, suporte da franqueadora, e até mesmo ter contato com outros franqueados, que eventualmente s?o convidados para participarem e apresentarem seus casos de sucesso. O primeiro passo sempre é ir do macro para o micro. Quanto mais ofertas, mais você consegue filtrar de acordo com seu perfil, expectativas e planejamentos que você possa ter feito como um pré-candidato. E o mais importante: seja realista!

Se n?o tem tempo para dedicar-se uma pesquisa minuciosa dos deveres e complexidade da Franquia terás tempo para se dedicar após o investimento?

Proper due diligence is the cornerstone of the journey. Use a professional!!! Would you buy a home without a team of professionals? The answer should be “no”.

Consider the FDD's Item 19 carefully. What story is it telling? Validate it with existing franchisees, then incorporate your own analysis to build your projections. Each franchise owner is unique, influenced by factors like location, market dynamics, managerial abilities, operational efficiency, local competition, and personal commitment. Therefore, rely on the information gathered from the Item 19 and conversations with existing franchisees to inform your due diligence process; it's not a guarantee of your potential earnings. Collaborating with a trusted funding partner who can guide you through realistic options will streamline your decision-making process.

Every franchisor presents its best image in its FDD Item 19 disclosure. But remember, the franchisor has a lot of freedom in what and how to disclose its historic financial data in Item 19. Do your own unit-level proforma using bits and pieces of the Item 19, then add in your own known expenses (rents and related), wage rate, tax rates in your city/state, interest rate, etc. Most importantly, factor in the royalty you will be obligated to pay. The franchisor's Item 19 numbers for company stores do not impose a royalty percentage, as the company-operated stores do not pay a royalty. Remember, an enterprise that makes money is "a business." An enterprise that does not make money is called "a hobby." No one wants to buy a hobby!

It is crucial to surround yourself with a team that can help you get to the brass tacks. BUT… make sure you find people who have franchise experience!

Carefully review the FDD and have an accountant or financial planner review it as well for you. Prepare some budget forecasts using the data in the FDD Item 19 section to see what your operating cash flows might look like and if they will support your potential debt service amounts. You will want to make sure that your potential cash flow from operations, especially in the early years, will support your debt service amounts, especially now with the higher interest rates on business loans. Use the budget data to also evaluate your financing options to determine if you will need to invest more "skin in the game" to make the investment work.

Tenho assessoria jurídica antes, antes de assinar qualquer compromisso, e antes de realizar qualquer investimento. Repeti o antes para defender a antecedência como remédio que evite as dores de um contrato leonino

Contrate um advogado especialista em franquia, com vivência, pois costumeiramente a prática é diferente da teoria e alguns itens dos documentos de franquias s?o particulares ao negócio, como por exemplo, a obrigatoriedade de consumir insumos de fornecedores homologados e até mesmo o formato de pagamento de royalties. Um especialista em franquia saberá te conduzir para o que realmente é relevante e pode ser um empecilho para o avan?o nas negocia??es. Ademais, este especialista saberá o que está ao alcance da franqueadora em termos de negocia??o, o que um advogado que n?o é especialista pode n?o te atender a contento, por n?o ter a vivência da área e mercado. Valorize seu advogado especializado em franquia.

This is extremely important… use a FRANCHISE ATTORNEY. If you use a general attorney, it would be like going to an eye doctor for brain surgery. It makes sense to use professionals that understand franchising.

Don't skip on consulting with an attorney during your initial franchise discussions. Always have a good franchise attorney review the FDD with you. I have seen too many franchisees either overlook this step or think it wasn't necessary. The money spent on the upfront legal advice is well worth it during your initial review of the FDD and before you make the franchise investment.

Leverage National Campaigns: Use franchisor's marketing guidelines and national campaigns. E.g., McDonald's franchisees benefit from global marketing like the "I'm Lovin' It" campaign. Localized Marketing: Tailor plans to your community. E.g., Subway franchisees run local promotions to attract nearby customers. Social Media Engagement: Utilize platforms for brand awareness. E.g., Starbucks franchisees engage with local customers through Instagram. Community Involvement: Engage with the community. E.g., Chick-fil-A franchisees sponsor local events to build relationships. Effective Branding: Ensure consistent branding. E.g., KFC franchisees maintain the brand's image in local advertising.

Nem todo candidato a ter franquia realmente tem perfil de franqueado, seja de forma específica ou seja de forma abrangente. O que quero dizer? Nem todo mundo pode ser franqueado, por melhor que seja a vontade e objetivo daquela pessoa, seja em uma marca específica ou no mercado. Um franqueado segue uma padroniza??o, tanto de estrutura, quanto de comportamento. A multiplica??o de negócio tem o objetivo de parecer ao cliente que, a sensa??o é de estar no mesmo lugar, em todas as franquias. Quanto mais “inova??o” um franqueado queira trazer para sua franquia, mais ele pode se afastar da franqueadora e isso pode ser uma faca de dois gumes. Seja compreensivo, caso ser franqueado n?o seja o melhor para seu perfil, explore outros mercados!