What Goes into a Franchise Application?

Many factors go into making franchise success possible. Among them is the selection of the right franchisees. The franchise application plays an important role in helping you identify those franchisees who will be a good fit for your franchising endeavor.

Designing a detailed and thorough franchise application is one way to ensure that you learn as much as you need to know about your prospective franchisees. If your application form asks all the right questions, you will be able to figure out which individuals are likely to contribute the most to the success and growth of the franchise. The most basic sections to include in your franchise applications are explored in some detail below.

 

The Features of a Good Franchise Application

 

First and foremost on the form should be a section for the applicant’s personal information. You should be clear about the types of information you are requesting and the level of detail you want to see. Contact information, biographical data, and information that will give you an indication of the applicant’s character are all crucial parts of this section. It is also important to get the applicant’s educational background, including all training relevant to the franchise in question. Along the same lines, the applicant’s employment history is also relevant. Descriptions of jobs held, their locations, and the earnings associated with them should be provided.

The franchise application must have a section dedicated to the applicant’s personal financial history. Such information should include the applicant’s current source of income, the income amount, any assets or liabilities, and the applicant’s net worth. If the applicant owns a business and has ever participated in some form of litigation or arbitration, this must be indicated. If the applicant is married, information should be requested about the spouse’s personal financial history. If the applicant happens to have partners or financial backers, then their financial information should be requested too. This section is crucial because it is the one that indicates to the franchisor that a particular applicant has the wherewithal to handle the responsibilities that come with running a franchise in good times and bad.

A wise franchisor will include in the franchise application a section in which the applicant is invited to describe what he or she knows about the franchise opportunity and why he or she wants to become a franchisee. This section is important because it gives the franchisor some insight into the applicant’s personality and shows whether the applicant has a realistic picture of what franchising will entail. Another important section that must be included in franchise applications is one requesting applicants’ preferred territories and their willingness to consider other alternatives.

The franchise application is not too early to start to sell yourself to the franchising company as someone they want on their team.

The franchise application step is the first significant document you will fill out on your quest to buy a franchise from a popular business. In the last few years, buying a franchise has become one of the Cadillac ways to strike it rich when starting your own business.  If you can land one of the primo franchises that everybody wants, all that stands between you and tremendous success is a bunch of investment capital and even more hard work.  The name recognition, explosive customer base and amazing corporate good will all comes with that franchise name that you are buying into will do all the rest.

The downside of that much potential wealth just laying out there is there is a lot of competition for the good franchise opportunities. Whether you want to buy a franchise in Starbucks, Wendy’s or some other very successful business, you can bet that when you submit your franchise application, it is competing with hundreds of other money hungry entrepreneurs who want that franchise just as much as you do.

The key is to know the tricks for how to get your franchise application picked so you move on toward the franchise agreement that you want. One thing that a franchising company looks for is that you are a person who loves to deal with the public and that you have a lot of success doing so.  Look for ways to brag about the success of your current business and putting a big and bright spotlight on how well you have done making customers love you. That is what will set your franchise application apart from the rest.

Look on the franchise application as a type of job interview and be who they want you to be.

When you start to fill out your franchise application, it is not too early to think about getting your ducks in a row financially.  When you state boldly that you are floating in the capital and credit that you need to afford the franchise fees, royalties and start up costs, be sure you really are that financially healthy. Be honest on the franchise application because overstating your financial health will only come back to haunt you later.  There is no getting around it that when you turn in that franchise application and you make the cut as a franchise owner they want on their team, they are going to check your credit rating. So make sure it is four star before you even start filling out a franchise application.

When a franchise company is ready to franchise a small business and set you up for great success, they want to know that you know exactly how to take the ball and run with it. That means you know how to be a team player and create a franchise the bosses back at the mother ship will be proud of. But it also means you can run your own ship as an independent business person and solve problems and come out the other end smelling like a rose.

Your success in running your own business before you started the franchise application should scream out that you are just the guy or gal they are looking for.  Make sure your franchise application shouts those qualities of sound judgment, good business savvy, the ability to get on board with the bosses and still make it big as a small business franchise owner all wrapped up in one neat package. If that is the song your franchise application sings, you can bet your paperwork will cause you to get the call that they want you to take the controls of their next successful franchise outlet.

One of the first steps to owning your own franchise is the franchise application so it pays to take your time and get it right the first time.

One of the first steps to get behind you in starting a franchise in grand style is the completion of the franchise application. It might feel like you are setting out to slay a dragon for King Arthur when you start the process of franchising a business. The path you are about to trod, however, is well worn and many have killed this dragon before.  So there is no need for theatrics. The key is to know the process and what is expected of you each step of the way.

The franchisor is not being a meddling busy body when they ask you for details about your financial history and how well fixed you are for funds going into this relationship. After all, you would not let them sign any legal document with you if they were dead broke. So they need to know that you have the finances behind you to kick start the franchise process and it is the franchise application where they will start learning what they need to know.

Those questions on the franchise application are going to snoop around in your finances above and beyond the money you will need to get the franchise purchase completed in grand style. They will investigate your credit rating and the finances coming into your home including the finances of your spouse. This makes the franchise application much more of a big deal than a resume for employment. But be prepared to offer that information so they know you have nothing to hide.

The franchise application is the first step of a partnership so be honest.

After they get through the inquisition about your finances, the franchise application may also have questions about your motivations for buying the franchise. The franchisor may also ask other personality questions so they can learn a little about just who it is they are doing business with. There are some personalities that do great in franchising and others that flop big time at franchise operations.  So open your wallet and your soul to the franchisor so they can check you out to make sure you are a fit to be part of their empire.

There is one personality trait you can just make up your mind well in advance will be your shining strength throughout the franchise application process. That personality trait is honesty.  Remember, even more than in an employment situation, the franchisor and franchisee relationship is a very active partnership. Be honest about every answer on the franchise application. Tell the truth from the first line to the last and in particular in the sections of the franchise application that deal with the tricky subject of money.

There is no sense in faking it. If you are financially ready to strike a deal with a franchisor, be proud and confess it openly on the franchise application. If you are not financially prepared for this huge step in your career, better to flush out now than after the franchise process has moved along and there is money on the table.  So bear your soul even as early as the franchise application and from then on out, it is smooth sailing because there are no skeletons in the closet.  You will be glad you did.