How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
You are going to make many decisions every day. Some of those choices are small, such as what you eat for lunch. Other decisions, however, are pretty major and will have a big impact on your life, such as buying a house or accepting a new job. These types of significant decisions take time and careful thought to make, but before you make them, you make many smaller decisions first. The same applies to franchises: as you progress from interested to prospective and finally commit as a franchisee, you'll make several small but influential decisions along the way.
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Is a franchise for you?
The first smaller decision you need to make before you commit to a Canadian franchise is whether you are someone who should buy a franchise. This style of ownership isn't for everyone. You should be organized, able to follow rules, comfortable with using ideas from someone else, willing to pay part of your profits out in return for support and other benefits, and on solid ground financially. Some of these are things you can work on if you're not there yet--such as shoring up your finances or becoming more organized--but others are a little more set in stone. If, for example, you know you always have trouble following rules set by someone else, you may have a tougher time running a franchise successfully.
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Which franchises are your ideal fit?
Once you have decided that you are ready to own a franchise, you need to think about fit. To do this, consider what your criteria for a franchise is. Some criteria are obvious, such as the highest investment level you're comfortable with. Others will require more consideration on your part. For example, do you want to have employees or do you prefer to be a one-person band? Do you want a physical location or do you prefer to work from home or have a mobile unit? Once you've decided just what type of franchise you want, you can start looking for brands that tick all the boxes on your list.
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What brands are calling to you?
You will likely find more than one brand that meets your criteria in Canada, so next you must narrow down your options. Look at the products, services and core values of each brand. Ideally, you want a franchise that you believe in, from what they offer to customers or clients to their corporate values.
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Are you really ready to buy?
Once you've done your homework and the steps above and found your franchise, the next step is a big one: deciding whether you should commit to the brand and become a franchisee. Of course, before deciding this, you should reach out to the franchisor and talk to them to learn as much as you can about the business. Investing in a franchise is a huge commitment on more than one level, so you must be absolutely sure of what you are doing before you sign any agreement.
