Being a business owner is a dream many Americans have — it’s the American dream! However, starting one from scratch can be complicated and confusing. A franchise is a great way to have your own business without breaking your bank or your back. Becoming a franchise owner can be an excellent opportunity, but how can you get there? Let’s break down how to become a franchise owner in a few simple steps.
1. Do Your Research
Doing your research is likely the most important step to becoming a franchisee. When you become a franchisee, you’re essentially buying a business. You probably wouldn’t buy a car or a home without diligent research on brands, locations, and more. The same goes for buying a franchise. Consider these questions when looking at different business opportunities.
- What industry do you want to franchise in? Franchises come in all shapes and sizes — from clothing stores to restaurants. If you have a passion for the restaurant industry, franchising can provide many opportunities, including with Penn Station East Coast Subs.
- What do your finances look like? Many franchises require a certain amount of liquid capital and have an initial investment cost. The startup costs for a franchise can range from tens of thousands to upwards of a million dollars or more. Taking a look at your portfolio or loan options may whittle down which business opportunities are right for you.
- Is ownership right for you? Business owners and franchise owners need to be passionate and driven. There might be heavy financial and social responsibilities as an owner, but the right drive and ability can help take you far. Some franchise owners are content with just one location, while others may want to grow their portfolio with a multi-unit franchise — considering this can also determine which brand you go with.
2. Form an LLC or Corporation
You don’t have to wait until you’re in a business to be able to create your own. Forming an LLC or a corporation can help protect your hard-earned money. Creating an LLC or a corporation is an important step in how to become a franchise owner because, according to My Franchise CPAs, it can protect your personal assets by providing you with liability protection and ensuring your franchise will operate under a legitimate business structure.
It might be a good idea to consult with an attorney or a business advisor to understand the legal implications and benefits associated with each option.
3. It’s Time to Apply
To get the ball rolling with any franchise, you’ll need to apply and begin the franchise qualification process with the franchisor. This can usually be done directly through the franchise’s website. Franchise brands typically have different requirements, which you may usually locate on each brand’s franchise website. For example, Penn Station East Coast Subs requires owners or owner groups to have a net worth of $500,000 and at least $300,000 in unencumbered liquid assets.
For full details on ownership requirements and franchise costs, see our current Franchise Disclosure Document (FDD).
4. Get the Cash
Determining financing, if needed, is likely one of the most critical steps in how to become a franchise owner. Entrepreneurs can get financing in several ways. An Entrepreneur magazine article, written in May 2018, titled “The 6 Best Financing Options for Franchising a Business,” highlights some of the options franchise owners may have to secure capital.
The article mentions loans, which can be SBA loans, loans from alternative lenders, commercial bank loans, or loans from friends and family.. Ultimately, it’s your responsibility to ensure that you have the capital to fund any business prospect, including a franchise. It might be a good idea to talk with a lawyer, accountant, financial planner, and other business owners to get a better understanding of the options you may have.
Franchise with Penn Station
Owning a franchise with Penn Station East Coast Subs can be an exciting and potentially lucrative business venture. We specialize in mouth-watering, fresh off-the-grill subs served with fresh-cut fries and fresh-squeezed lemonade. But our menu isn’t the only thing that sets us apart. We provide intensely focused and thorough training for all our new franchisees and support that extends well beyond your grand opening. We are also uniquely positioned to grow in our industry sector, as we continue to expand our brand across the U.S.
Request information today to learn how you may become part of a dedicated team and growing franchise system with Penn Station East Coast Subs.*
The offer of a franchise can only be made through the delivery of a Franchise Disclosure Document. Certain jurisdictions require registration prior to the offer or sale of a franchise. We only offer franchises in jurisdictions where we are registered or are exempt from registration. Penn Station, Inc. 1226 US Highway 50, Milford, OH 45150. Penn-Station.com