Knowing how to buy a franchise is a matter of doing your research and finding the right franchise to become a part of. If you’ve been thinking about owning a burger franchise, you likely know that your business has a high chance of success, since burgers are a favorite with American consumers.
There are also other options to consider when it comes to having a burger franchise. If you don’t want a traditional location, you can work on starting a food truck or burger catering. Some of the best burger franchises have added these options to their business models to appeal to more customers. Zac’s Burgers is a great choice if you live in the Philadelphia area. The company has been in business for over 30 years and has helped several aspiring franchise owners achieve their dreams.
Here are some important steps you should take when you’re looking to buy a franchise.
Do Your Research
The first step to being a successful franchise owner is doing your research. Look at the various burger franchise options available so you can find the one based on your interests, budget and skill set. You can search online to find the top burger franchises in the U.S. and in your region.
To determine which franchise opportunity is right for you, make sure you know the qualifications for opening each burger franchise you’re considering. You’ll also have to do a self-assessment to determine your resources, as well as your skills and interests. Once you complete this part of the research process, you can refer to an online franchise website to find ideal opportunities.
It’s best to take a look at the various aspects of research in detail.
Make sure you know all the qualifications – in many cases, franchisors will clearly outline the minimum requirements for ensure all potential business owners are qualified when it comes to professional experience and personal finances. Remember that franchisors want to make sure their business reputation remains intact and their bottom line remains secure.
The qualifications will differ depending on the type of burger franchise you want to open. However, these factors are usually taken into account:
- Credit score – The minimum credit score will vary by franchise, but you generally need a score of 680 or higher to be approved as a franchise owner.
- Net worth – If you have to invest a large amount to start your franchise, you have to show that you have a high net worth to meet the qualifications. There are online calculators you can use to determine your overall net worth before you apply to be a franchise owner.
- Cash on hand – You’ll have to have enough money on hand to cover the down payment to open your franchise location and take care of operational costs. Your outside income will be taken into consideration as well. When you’re opening a franchise, you need other forms of income to ensure you have enough money for living expenses while you’re starting your franchise.
- Experience in the industry – Some franchises won’t require you to have prior experience in the industry. However, most burger franchises will be more confident in your skills and abilities if you have related experience.
- Leadership/management experience – As a new franchise owner, you’ll be in charge of leading a team and managing your business. Zac’s Burgers will provide you with the support you need to get your franchise off the ground. However, it’s best to have as much management experience as possible before you apply to become a franchise owner. It will make you more confident in your new business venture and increase the confidence of your franchisor as well.
If you want to know how likely you are to qualify to become a burger franchise owner, take a look at some of the statistics provided by the International Franchise Association (IFA). Typically, franchise owners are:
- Between the ages of 35 and 55
- Have a net worth of at least $250,000
- Have an IRA or 401K
- Have an average income of at least $60,000
- Have previous experience in corporate management
- Are first-time business owners
- You should carefully analyze your interest and abilities, along with your personal resources to determine if you should open your burger franchise.
- A self-analysis on your personal skills, interests, and resources is essential when buying a franchise, especially because franchisors will ask you about your finances and professional experience. Knowing what you are capable of – financially, skillfully, and professionally – will also help you narrow down your options when finding the right franchise opportunity.
- You should create a net worth report and list your assets and liabilities, as well as your credit score and income. You should also create a resume to showcase your leadership, industry and professional experience to show why you’re qualified to run a burger franchise.
- You should also take time to create a timeline for buying your franchise. This will give you an idea of how long it will take you to do your research, contacting the franchisor and review all the franchise disclosure documents and franchise agreements. The timeline should also indicate how long it will take you to choose a location and get the financing you need.
Search for Franchising Opportunities
Now that you know what type of burger franchise you want to open and you’ve reviewed your skills and franchise qualifications, it’s time to search for opportunities. Look for a franchise that will fit your needs and accommodate your skill set. Don’t simply purchase a burger franchise because it’s popular at the time. It’s best to choose a company to work with that has proven professional success over the years.
If you want to know more about Zac’s Burgers, you can visit the website to learn more about becoming a franchise owner.
Take a look at reviews from franchise owners as well as customer reviews as well. You can check out the Better Business Bureau to get a better understanding of what your customers will expect when they visit your location.
Fill Out Initial Applications and Additional Documents
After you’ve done your self-assessment and franchise research, you can contact the franchisor to receive a preliminary questionnaire and application documents. This allows franchisors to screen you and determine whether you’d be a good fit. After your documents are approved, you can establish a meeting with the representative of the franchise and get the proper franchise disclosure document.
Attend a Discovery Day
Finally, once you get your federal disclosure agreement, you can meet with the franchisor management team during what is known as discovery day. This usually occurs at the head office and is an opportunity for you and the franchise owners to become acquainted with each and ask pertinent questions that will affect your success as a new franchisee.
It’s best to prepare a list of questions about running a burger franchise and write down the information you receive to use as a resource for your new professional venture.