Franchising is regulated by the FTC (Federal Trade Commission) which has spelled out guidelines for how franchise opportunities are offered and awarded (see our “Awarded versus Sold” blog post for more on “award.”)
Simply put, the process starts with a quick interview to determine the level of interest of the interested party. Next, is a structured Discovery phase where the franchisor provides overview information about the industry, the business and the franchisor’s approach to support, marketing and operations. This phase can last from a few days to weeks, depending on the candidate’s level of interest or sense of urgency. The key is that the schedule is driven by you, not us. You can, and should, proceed at your own pace.
During this phase, the candidate is provided a copy of the Franchise Disclosure Document (FDD), which contains everything you would ever want to know about the franchisor – as defined by the FTC.
At this point, Always Best Care’s Area Representative also will have made a personal introduction and helped answer any questions about the specifics of the local market.
Discovery is followed by Validation, where prospective owners have the opportunity to engage current owners with specific questions about their experience, ‘a day in the life,’ sales, margins, challenges, successes and goals. Again, this process can last a few weeks, depending on the depth of due diligence performed.
When a prospective owner has completed Discovery and Validation, they have an opportunity to visit the company headquarters for a Discovery Day and meet the leadership team and support team. Given all that information and interaction, the candidate should then have all the information necessary to make an informed decision about their future.