How to Open a Successful Franchise in Dallas, Texas
Have you thought about becoming an entrepreneur and wondered if you could make it starting your own company and everything that goes along with it? You’ve thought long and hard about it, and then realized it’s too much for you at the moment, and put it on the back burner.
You then pass certain places here in Dallas, or walk into a shop and see that it’s a franchise. The owner, the person running it perhaps, seems pretty content, and it comes into your mind—what about a franchise? If you’ve thought you don’t have the natural ability or expertise to manage and run efficiently all aspects of a business and make it successful, then this could be your option.
Why Is Operating a Franchise a Good Option?
A franchisor has years of experience, with the organization offering a structure for launching, operating and growing a business. By becoming a franchisee, you’ll have the entire framework you need already done for you; from operation manuals to training programs covering everything you need to know to be a success—business-specific marketing, operations, accounting, technology, etc.
It’s in the franchisor’s best interests to make sure you are successful, after all.
What Are Some Benefits to Becoming a Franchisee?
One of the main things is the collaboration offered by the franchisor. You’re able to grow under a common brand and share the benefits of a large group of other owners. Yes, you’ll be independently-owned and operated, but a franchisee shares in the collaborative benefits of a franchise operation, such as: group advertising resources (not generally available to a small-business owner); an increased ability to sell to established target markets; the previous recognition of the brand; a lower risk of failure; being part of a large operation but still independent; a large network of support; and many others.
Remember the happy owner mentioned above? When you make the franchise decision, you’ll know that if you’ve chosen the right franchise, a happy owner is more successful, and makes more money. Make sure you ask questions when you’re investigating franchises—a key question is the commitment of the franchisor, and their own future development plans.
With the thanks of Franchise Direct, the below infographic gives the 11 most-important steps to opening a franchise.
Self-evaluation. Think about why you’re doing this, and why this arrangement appeals to you. It won’t be a piece of cake; there will be long hours that will most likely include weekends and holidays (especially when starting out). Are you committed to it? Are you comfortable with a predetermined set of business model methods, and paying a percentage of profits to the franchisor?
Franchise consultant. You may find yourself unsure about everything involved, and that’s where a consultant comes in. It’s not a must-have, but certainly, something to think about.
Research. Make sure you research! This includes determining what business your chosen area can sustain. Once you’ve determined that, is it the type you’d like to open? Both Federal and state governments will have all types of statistics you can delve into before making such a big decision. Once you’ve narrowed it down, then request the franchise application from the companies you’ve chosen to consider. If you’re deemed a “good match,” they’ll send you a copy of their franchise disclosure document (FDD). This will give you an in-depth look into their model.
Discovery day. We recommend holding an in-depth meeting with as many franchisors as you like, before making a final decision. These are generally arranged by the franchisor, and usually include detailed information about support, offerings, department tours, and the like.
Other franchisees. This is very important. As part of your research, be sure to talk with other franchisees of your chosen business. Ask them detailed questions, such as satisfaction with franchisor support, and were they realistic in everything offered.
Location, location, location. Again, this is part of the intense research, making sure you choose the right location for the specific business. Is it a low- or high-traffic area? Are there complementary businesses around that will drive customers to you? Many times the franchisor can help with finding the right location but if not, then they’ll need to approve your chosen location in advance.
Secure funding. Now that you’ve done your research, attended discovery days, learned about nearly every neighborhood in Dallas, and talked to many franchise owners, it’s time for the two biggest of things to happen: making the decision as to what franchise, and securing funding. There are many sources to consider, such as bank loans, Small Business Administration, home equity credit, and others. You guessed it—more research. Keep in mind that you’re going to need enough cash reserves in the beginning to cover all pre-profit expenses. It won’t happen overnight.
Signing the agreement. The rigidity or flexibility of the agreement will depend on the franchisor. Like any other agreement you may sign, you should speak to your attorney before doing so. Franchises are based on a proven system for each brand, and rigidity doesn’t have to be a bad thing—but too much flexibility should cause a question mark.
Insurance and permits. Here at Hogue Insurance Agency, we’ve worked with many franchisees and franchisors. We have years of experience in various business models and the insurance requirements for each. This includes those for Texas, the city of Dallas, and the counties. While the franchisor will generally have knowledge also, do feel free to stop by or give us a call so we can help you make sure that all insurance requirements are being followed, and you’re adequately protected and covered for any eventualities.
Pre-opening staff hire and training. Of course, the number of staff needed will depend on the business, but one of the best things about being a franchise is that the training is nearly always provided by the franchisor.
We’re open! Now comes the marketing and letting Dallas know you’re open for business. Your franchisor mostly likely will have pre-defined marketing options available for you, such as signs, ads, and other initiatives. These should have all been part of the FDD. Your chosen franchisor may even have a corporate trainer on-hand at the pre-opening (or soft opening) and your grand opening.
We hope this information and the infographic have been helpful to you. As always, we at Hogue Insurance Agency are here to help you answer any questions you might have or to answer your important franchise insurance needs questions. Stop by to see us at Hogue Insurance Agency, 5757 W. Lovers Lane, Suite 221, Dallas or call us at (972) 404-0303.