The Franchising Process: A Complete Visual Guide - MassageLuXe

The Franchising Process: A Complete Visual Guide

If
you’ve found this article, you’re an entrepreneur already immersed in market
research.

In
an article titled The Real Definition Of Entrepreneur — And Why It Matters,
...

/> Forbes defines
entrepreneurs as people who identify a need and fill it. “It’s a primordial
urge, independent of product, service, industry or market,” the piece posts.

Entrepreneurs take risks. They execute on big ideas and persevere through success and failure. Entrepreneurs are the fuel of innovation and market trends.

The Advantage of Franchising

The
smart entrepreneurs, as bold as they may be, don’t take foolish risks. They
enter calculated endeavors.

One
of the best ways to do that is by opening a franchise business.

Both
starting an independent business and buying a franchise have pros and cons. Building an independent
business gives more autonomy, but the flip side of that coin is a lack of
support. For owners who have not operated their own business before, especially
in a relatively unfamiliar category, the learning curve is extremely steep.

However, the benefits of owning a franchise include an established support system and the wisdom and market intelligence to capitalize on growth trends, enabling a franchisee to achieve its success milestones more quickly.

Research and Evaluation

The
options for franchises out there will seem limitless. But narrowing your areas
of interest to a few categories of business types is the first step of the
franchising process. From there, you can narrow the selection by how much
you’re willing to invest as well as which franchises fit your personal goals.

Soul-searching
and crunching numbers are the best ways to reduce your choices and enable you
to find the right franchise.

Read
industry publications covering the industry you’re most interested in. Study
the franchise brand or brands you’re focused on. If possible, talk to current
franchisees about the pros and cons of the franchise.

The required investment levels for franchises are publicly available. If you can’t locate them online ask for the company’s Franchise Disclosure Document (FDD).

The Franchise Application

When
you pinpoint the company you want to work with, request information and speak
to a representative of the franchisor who works with prospective franchisees.

They
likely will ask you to complete and submit a franchise application, which is
similar to a job application or a shortened loan application.

Though
all franchise applications differ, typically they will ask for in-depth
information about yourself. You’ll list the geographical area, such as city,
state, or region, where you are hoping to open a franchise location or
locations. The application will ask for other information too, such as whether
you are married or will have business partners in the venture.

You’ll disclose financial information, such as how much cash you have on hand, the estimated value of any investments you have, any retirement accounts, bankruptcies, etc.

Vetting Each Other

In
this courting process, your goal will be to impress the franchise company and
show them why you’re the right franchisee for a given area, instead of other
applicants.

Showing
you can meet the financial threshold is crucial. If you establish you have the
proper funding, next you’ll want to talk up any business management or
ownership experience you have, as well as any experience you may have in the
subject matter of the market you’ll be entering.

Show
them what kind of prospect you are and how serious
and authentically interested you are. Think ahead and be prepared to share your
short- and long-term goals.

Demonstrate that you have the personality and work ethic necessary to lead a team and launch a franchise operation — in partnership and accordance with the franchisor’s systems, practices, and guidelines.

Moving Toward an Agreement

After
you and the franchisor both have conducted sufficient due diligence to vet each
other, before signing a franchise agreement, you’ll need to put forth your
funding.

Many
new franchisees aren’t financially heeled enough to fund the entire initial
investment, so they turn to outside lending sources to provide financing. Such
resources may include family and friends, investment funds, or traditional
lending institutions.

Some
people have the option to ask family or friends to loan them the funds to cover
the initial investment costs, others tap into their 401K or retirement funds,
and others use traditional lending institutions like local or national banks.

A number of franchisors have relationships with lenders and can assist a franchisee before the franchise agreement is even finalized.

Reaching an Agreement

Fully
vetted and funded, it’s time to officially become a franchisee.

Franchisors
will set forth what they expect from you and what they will provide, in franchise agreements. Be sure to ask an
attorney with experience in franchise dealings to review the proposed
agreement.

Before
getting to this point, be sure you’ve considered who will be signing — i.e.,
are you signing in your personal capacity or as a member of an LLC or other
business entity that will own the franchise? Be sure you fully consider the
duration of the agreement, whether it is renewable, etc.

The
agreement will also set forth initial fees, royalty fees, and any other costs.
You should already have been aware of these before you chose to partner with
this franchisor. Make sure the agreement reflects accurately and clearly what
those fees are and how they are determined.

The document should also set forth who is responsible for what in terms of training, operations, brand standards, marketing, purchasing, expansion options, exclusivity of the territory, and much more.

What’s Next

At
this point in the franchising process, you are officially a franchisee.

From here, your franchisor will jump into action to help you get set up for business, assist with marketing and hosting your grand opening, and all the fun, exciting, and profitable next steps that come with opening a franchise.

About MassageLuXe

Founded
in 2008 in St. Louis, Missouri, MassageLuXe is a fast-growing franchise-based
spa company with a mission of delivering the highest quality massage while
providing a comfortable, relaxing and luxurious environment to clients. To
further this mission, MassageLuXe also grants clients access to Repechage
facials and waxing services.

Massage
is a service that improves health, promotes relaxation and overall well-being
for the consumer, and has been practiced throughout the world for thousands of
years. MassageLuXe currently has 68 locations across 16 states and is planning
to expand to 250 locations in the next five years.

For
more information about MassageLuXe, please go to https://massageluxe.com/.

For
franchising information about MassageLuXe, please go to https://franchise.massageluxe.com/.

[ Read More ]

If
you’ve found this article, you’re an entrepreneur already immersed in market
research.

In
an article titled The Real Definition Of Entrepreneur — And Why It Matters,
Forbes defines
entrepreneurs as people who identify a need and fill it. “It’s a primordial
urge, independent of product, service, industry or market,” the piece posts.

Entrepreneurs take risks. They execute on big ideas and persevere through success and failure. Entrepreneurs are the fuel of innovation and market trends.

The Advantage of Franchising

The
smart entrepreneurs, as bold as they may be, don’t take foolish risks. They
enter calculated endeavors.

One
of the best ways to do that is by opening a franchise business.

Both
starting an independent business and buying a franchise have pros and cons. Building an independent
business gives more autonomy, but the flip side of that coin is a lack of
support. For owners who have not operated their own business before, especially
in a relatively unfamiliar category, the learning curve is extremely steep.

However, the benefits of owning a franchise include an established support system and the wisdom and market intelligence to capitalize on growth trends, enabling a franchisee to achieve its success milestones more quickly.

Research and Evaluation

The
options for franchises out there will seem limitless. But narrowing your areas
of interest to a few categories of business types is the first step of the
franchising process. From there, you can narrow the selection by how much
you’re willing to invest as well as which franchises fit your personal goals.

Soul-searching
and crunching numbers are the best ways to reduce your choices and enable you
to find the right franchise.

Read
industry publications covering the industry you’re most interested in. Study
the franchise brand or brands you’re focused on. If possible, talk to current
franchisees about the pros and cons of the franchise.

The required investment levels for franchises are publicly available. If you can’t locate them online ask for the company’s Franchise Disclosure Document (FDD).

The Franchise Application

When
you pinpoint the company you want to work with, request information and speak
to a representative of the franchisor who works with prospective franchisees.

They
likely will ask you to complete and submit a franchise application, which is
similar to a job application or a shortened loan application.

Though
all franchise applications differ, typically they will ask for in-depth
information about yourself. You’ll list the geographical area, such as city,
state, or region, where you are hoping to open a franchise location or
locations. The application will ask for other information too, such as whether
you are married or will have business partners in the venture.

You’ll disclose financial information, such as how much cash you have on hand, the estimated value of any investments you have, any retirement accounts, bankruptcies, etc.

Vetting Each Other

In
this courting process, your goal will be to impress the franchise company and
show them why you’re the right franchisee for a given area, instead of other
applicants.

Showing
you can meet the financial threshold is crucial. If you establish you have the
proper funding, next you’ll want to talk up any business management or
ownership experience you have, as well as any experience you may have in the
subject matter of the market you’ll be entering.

Show
them what kind of prospect you are and how serious
and authentically interested you are. Think ahead and be prepared to share your
short- and long-term goals.

Demonstrate that you have the personality and work ethic necessary to lead a team and launch a franchise operation — in partnership and accordance with the franchisor’s systems, practices, and guidelines.

Moving Toward an Agreement

After
you and the franchisor both have conducted sufficient due diligence to vet each
other, before signing a franchise agreement, you’ll need to put forth your
funding.

Many
new franchisees aren’t financially heeled enough to fund the entire initial
investment, so they turn to outside lending sources to provide financing. Such
resources may include family and friends, investment funds, or traditional
lending institutions.

Some
people have the option to ask family or friends to loan them the funds to cover
the initial investment costs, others tap into their 401K or retirement funds,
and others use traditional lending institutions like local or national banks.

A number of franchisors have relationships with lenders and can assist a franchisee before the franchise agreement is even finalized.

Reaching an Agreement

Fully
vetted and funded, it’s time to officially become a franchisee.

Franchisors
will set forth what they expect from you and what they will provide, in franchise agreements. Be sure to ask an
attorney with experience in franchise dealings to review the proposed
agreement.

Before
getting to this point, be sure you’ve considered who will be signing — i.e.,
are you signing in your personal capacity or as a member of an LLC or other
business entity that will own the franchise? Be sure you fully consider the
duration of the agreement, whether it is renewable, etc.

The
agreement will also set forth initial fees, royalty fees, and any other costs.
You should already have been aware of these before you chose to partner with
this franchisor. Make sure the agreement reflects accurately and clearly what
those fees are and how they are determined.

The document should also set forth who is responsible for what in terms of training, operations, brand standards, marketing, purchasing, expansion options, exclusivity of the territory, and much more.

What’s Next

At
this point in the franchising process, you are officially a franchisee.

From here, your franchisor will jump into action to help you get set up for business, assist with marketing and hosting your grand opening, and all the fun, exciting, and profitable next steps that come with opening a franchise.

About MassageLuXe

Founded
in 2008 in St. Louis, Missouri, MassageLuXe is a fast-growing franchise-based
spa company with a mission of delivering the highest quality massage while
providing a comfortable, relaxing and luxurious environment to clients. To
further this mission, MassageLuXe also grants clients access to Repechage
facials and waxing services.

Massage
is a service that improves health, promotes relaxation and overall well-being
for the consumer, and has been practiced throughout the world for thousands of
years. MassageLuXe currently has 68 locations across 16 states and is planning
to expand to 250 locations in the next five years.

For
more information about MassageLuXe, please go to https://massageluxe.com/.

For
franchising information about MassageLuXe, please go to https://franchise.massageluxe.com/.

[ Show Less ]

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