Buy A Franchise

Buying a franchise involves buying the rights and support systems to own and operate a business that has been designed by someone else. It is a common way of establishing a business.

Usually, franchise networks are based on a successful business established in one original location. Franchise outlets may then be established in other locations. Each location uses the same company name, operating system, purchasing procedures and management system, and benefits from general advertising campaigns. Each franchise outlet receives varying degrees and types of franchise supports.

Some Examples

1. Many fast food outlets such as McDonald's Burger King and Kentucky Fried Chicken are franchise operations.

2. Other common types of businesses which may be franchised are real estate agencies, restaurants, hair salons, building supply outlets, dry-cleaners, picture-framing shops, lawn maintenance services, fast printing services, quick photo processing outlets, automobile repair and parts shops, sports equipment stores, computer stores, video rental outlets, home security firms and machine vending services.

How To Do It

1. Find and read publications relating to franchising, to learn about its advantages and disadvantages. Good sources of information include local libraries, as well as Canada Business .

2. Identify types of franchise operations you would like to explore by:
   • reading newspaper and magazine advertisements and franchise trade journals;

   • joining franchise trade associations; and

   • noticing franchised businesses in other locations which may work in your area.

3. Work at a franchise outlet of a business which interests you.

4. Attend franchise trade shows.

5. When you have selected the type of franchise which most interests you, identify and talk with potential customers to determine their need for your products or services.

6. Talk with a few franchisees for information on being part of a franchise operation.

Key Questions

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