Learn about these 6 steps to launching a franchise in 2018.
Do you dream of owning your own business or franchise location? If so, you’re not alone. There are more than three-quarters of a million franchise establishments in the United States. Owning a franchise location is a great approach to running your own business that reduces the risks that can be encountered when starting a business from scratch.
Many franchise brands have systems in place to help new owners launch their new locations, but that doesn’t mean it’s always easy to know where to start. At The UPS Store, we understand the first step can be the hardest, so we put together this guide to help new franchise owners get up and running.
6 Steps to Launching a Franchise in 2018
Step No. 1: Decide which franchise system is right for you
Buying a franchise can be one of the most rewarding business decisions you will ever make. However, it’s important to make sure you choose the right franchise for you. Here are a few tips to help you make the right decision.
- Start with the industry or field you’re most interested in. You don’t have to have experience in that industry but it’s important to be passionate about the work.
- Look for industries that have plenty of consumer demand to help make your business successful but aren’t overly saturated by competing brands.
- If you have an idea where you want to set up shop, research the franchise brand to make sure they have availability in that market.
- Narrow down your choices to franchise systems with well-recognized brand names, stable fiscal performance and established support systems.
If you’ve narrowed down your options and are wondering if The UPS Store is right for you, here are a few benefits to help make that decision easier.
- The UPS Store is consistently one of the top franchise brands according to Entrepreneur Magazine’s Annual Franchise 500 list and has been named the best brand in the category “Postal, printing, communications and business services” for 28 straight years.
- The UPS Store has a world-class training program for new franchise owners. The extensive on-site and in-house training programs have been honored with the American Society of Training and Development’s PEAK Award.
- The UPS Store is a well-recognized brand and runs national advertising campaigns to increase brand recognition, along with local marketing initiatives to increase awareness within your community.
- The UPS Store provides dedicated support resources to help you open, operate and grow your business. If you need help, just pick up the phone and our technical support team is ready to help. We also offer networking opportunities to help franchisees stay abreast of industry trends and learn the newest strategies for running your business.
- The UPS Store offers multi-unit opportunities with the potential of reduced franchise fees and specialized training. In fact, more than half of the franchisee network owns more than one center.
- The UPS Store franchisees provide professional services and excellent customer support for businesses in their communities. Businesses regularly need these types of services (printing, direct mail, packing and shipping) and our dedication to customer service keeps them coming back time and again.
Step No. 2: Apply for approval to open a The UPS Store
Every franchise system has a unique method for helping new owners get started. The UPS Store offers a simple four-phase process that starts with the inquiry phase where you’ll receive invitations to attend a national webinar and complete an application. Then, you’ll move on to the application phase where you’ll go through an opening interview, sign a franchise disclosure agreement, submit your financials and complete an executive interview. In the next phase, funding, you’ll sign a letter of intent, provide an initial application fee and, if everything looks good, you’ll receive a letter of approval. In the last phase, booking, you’ll get your location up and running – which we’ll cover in more detail below.
Step No. 3: Determine how you’ll finance your new franchise location
Launching a new franchise location is a major investment and it’s important that the brand provides the support and resources necessary to help franchisees create success. The UPS Store partners with Guidant Financial to offer a full suite of financing options for qualified franchisees. Prospective franchisees can check to see if they’re qualified with this innovative tool from Guidant Financial. Within two minutes, you’ll know your maximum funding amount, funding options and which programs you’re preapproved for.
The UPS Store also offers special programs for veterans and store in store locations.
Step No. 4: Selecting a site for opening a The UPS Store and negotiating a lease
The UPS Store works closely with new franchise owners to determine the best geographic territory for new locations and has plenty of available markets across the country.
Here are the criteria The UPS Store looks at when finding ideal locations for franchisees:
- A strong grocery store anchor or center with a tenant mix that includes national brands
- Strong signage placement opportunities
- Great visibility from major roads or anchors
- A parking lot with ample spaces that’s easy to enter and exit
- Strong demographics
Once we find the location that’s perfect for you, our Franchise Development team will help you negotiate the terms of a lease, design the store and get it ready to open.
Step No. 5: Complete comprehensive brand training
Along with helping to get the business ready for you, The UPS Store will also provide the training to get you ready for the business. The UPS Store offers a comprehensive training program consisting of these four phases:
- Web-based training: Online training to provide new owners a solid foundation of store operations and business acumen.
- In-Store Experience I: In-person training focused on store operations and technical systems at a The UPS Store Certified Training Center.
- University Business Course and Print Services Training: An interactive workshop focused on business acumen, human resources, sales and marketing, operations and financial management.
- In-Store Experience II: In-person training reviewing store operations, technical systems and print services.
Step 6: Continue to grow your business
To succeed in today’s fast-paced digital world, franchise owners need to constantly evolve – mastering the newest strategies and tools of the trade, staying up to date with the latest industry trends and finding innovative ways to reach consumers. The UPS Store helps franchise owners grow and keep learning by:
- Offering networking opportunities including area meetings, regional conferences and a national convention.
- Continuously innovating to help you better serve your customers with new products and services.
- Marketing your franchise at the local level to gain and retain customers in your community and advertising at the national level to build brand awareness.
If that process sounds good and you’d like to get the ball rolling on opening your own The UPS Store, contact us to get started. If you still need more information before you decide, make sure to check out one of our weekly webinars or upcoming live events.
