Franchise Application: What Franchisors Are Looking for
If you’ve decided to pursue your business ownership aspirations and get into the world of franchising, you certainly want to put your best foot forward when presenting yourself to potential franchisors. Full transparency is vital, plus preparation will assist you as you journey down this road. It’s a good idea to have an understanding of terms and expectations.
By the time you arrive at the franchise application stage, you have most likely researched the franchise you are interested in and have spoken to a franchise representative. Next is the all-important franchise application. This is a screening tool that franchisors use to determine your level of interest and qualifications. An initial franchise application may be available on the brand’s website, or you can request one. The application is the opportunity you have to set yourself apart and be noticed.
Franchises can be very competitive. Many brands are highly sought-after, and franchisees are “awarded” their franchise by the franchisor. The application is the start of what promises to be a long-term business relationship. It's important to note that filling out a franchise application does not bind you to the franchise. The application allows the franchisor to see you and your qualifications on paper, much like a job application. While not all franchise applications are identical, what remains consistent across all brands is that the objective is to glean all they can about you.
What to Expect in a Franchise Application
- Most franchise applications will ask for detailed personal information, including contact information.
- It’s likely you will also need to provide the territory you are interested in, like the city and state. Plus, the franchise may want to know if you’d be willing to relocate.
- A franchise will want to know if you are married or have business partners that will be part of the franchise ownership.
- The franchise looks at your employment history. This includes where you have worked, what you did, for how long, and your annual compensation.
- They want to know your experience. That means your level of education and skill sets. In franchising, there are typically no educational requirements. On-the-job experience is often just as valuable as a college degree. They are looking for prior business or customer service experience. They want to know if you’ve ever owned a business or managed one. Leadership experience is crucial in this job because you’ll be leading a team.
- Additionally, they want to know about your finances. This is a business, after all, and the franchisor needs to make sure you qualify. Do you have enough cash on hand, and what is your total net worth? They set standards and are looking for your investments, retirement accounts, and any possible financial issues like bankruptcies. They have required minimum liquidity and net worth standards you must meet. It’s common to see a net worth of $100,000 or close to that. The Franchisor needs to ensure that you will be able to keep your franchise location afloat until income begins rolling in or if your business hits a bump down the road. Therefore, be prepared to provide personal financial statements, including your assets, liabilities, and income sources.
You want to hit the minimum standards of the brand, and then you have the chance to take it next-level and stand out. Franchisors are trying to determine if you are a good fit, so they will look at you as a person. They are looking for a balance. Franchisors want go-getters with a good work ethic who are willing to work within the parameters of the proven business model.
Industry experts agree that most franchisors are looking for a positive and can-do attitude. These are folks motivated for success who are willing to take risks. They look for prospective franchisees with leadership experience and some business background. They want passionate entrepreneurs excited to get started.
The application may also include a section to find out what you know about them and why you are interested in their brand. This allows them to measure how serious you are and what your short- and long-term goals are.
According to the Small Business Administration, the franchise purchasing process — from the search to the purchase — will take three to four months. Plus, six months to a year before you open your doors, depending on construction, supplies, leases, and permits.
There are factors to consider before buying a franchise. Make sure you do your homework. You want to research a brand thoroughly. You are looking for growth in your investment and looking for a business that aligns with your goals, interests, beliefs, and skills.
Franchising with MassageLuXe
At MassageLuXe, we suggest having a list of questions to ask a franchisor as you hone in on a brand you like. We are always looking for enthusiastic entrepreneurs who have always dreamed of controlling their own destiny in a growing wellness industry. We provide the model, training, and support you need to operate a turnkey business and help you succeed.
To learn more about spa franchise opportunities with MassageLuXe, scroll down to fill out the contact form below.