Step 4: Introductory Calls & Meetings with Potential Franchise Markets

Franchisors do not award ownership of a franchise to everyone. You must be able to qualify first. Franchisors will be searching for someone who shares their passion for the business and is financially ready to take that next step. As we talked about in Step 3, you must have or have access to the necessary funds to take on being a franchise owner. You will need to provide many of the documents discussed in Step 3. Your credit report and net worth statement will be two of the sole documents you need to provide the franchisor. These documents will allow the franchisor to understand your financial stability and if you will be able to turn a profit. Franchisors will be looking at your attitude and work ethic. While there will not be any documents to disclose, they will be relying on recommendations and your tone during these meetings. If you are not enthusiastic or have doubts about leadership skills, franchisors may deem you unqualified. They will likely ask you what your goals, timeline, and territory for the franchise are.

Overall, the franchisor will focus on two main aspects: Your financial capital and your personality. Franchisors want people that will fit into their franchise family, that have the support and goals to run a successful franchise. Every franchise has different criteria for what they believe is the perfect fit for their company.

Also, you can ask franchisors to disclose information about their business. During an introductory call, the franchisor will lay out his/her goals for the franchise and the financial capital needed to run the business. The franchisor will provide the Franchise Disclosure Document (FDD) that highlights the agreement that will be placed after qualification. This will be discussed in more detail in Step 5. The franchisor can disclose the royalties of the business so that potential buyers understand the profitability of the franchise.

Most franchisors will happily answer your questions during these introductory calls and meetings to set your mind at ease. You should be concerned if the franchisor evades your questions and provides unclear answers. Although the franchisor is interviewing you as a potential owner, you are also interviewing the franchisor to find the right franchise.