Franchise Application Process: Increase Your Odds of Approval

You’ve done your due diligence, and you’ve made a decision about the franchise you want to partner with. You are about to make a huge investment of your time and money as a potential franchisee. But first, you must make it through the franchise application process. What exactly is that? What are franchisors looking for? What should you expect? Here are some ideas of what this evaluation will entail and how to make sure you’re approved.

Although franchising is considered a less risky business venture than a start-up, there are still some elements of your business ownership dream that must be addressed. Depending on the franchise brand, the application process can be very strict, and it’s best to have all your personal and financial information ready to share as they assess whether you are a good fit with the brand. It’s a rigorous process, but it needs to be, as this business partnership must be good for both parties.

The application process is about gathering information to ensure you are capable of doing the work and have what it takes to run your franchise. It’s an elimination process to sort out which candidates have the right stuff.

What Are Franchisors Looking For?

While there is an actual application you will fill out as a prospective franchisee, there is more to the process including interviews and evaluations.

The application will include contact information along with some background information about your education and training, business experience, employment history and citizenship status.

You must reveal personal financial statements like assets, liabilities, net worth, income, and capital. You must also share a copy of your latest credit report and rating.

You will let them know what area you are interested in for your franchise location, to prevent any territorial issues with other franchise sites.

Franchisors are also looking for a detailed explanation about why you have chosen their brand. They are looking for your motivational factors, they want to know, besides profit, what drives you to success and how you align with their brand. They are looking to see if you are genuinely enthusiastic about working with them.

What Are Must-Haves for the Franchise Application Process?

Here’s a quick list of additional “must haves” and what makes you a more attractive candidate:

  • Exhibiting true entrepreneurial spirit
  • Team leader and team player
  • People skills and professionalism
  • Motivated
  • Knows the importance of self-growth
  • Ability to follow systems
  • Make and keep a commitment

A few more things to consider include, having an overall understanding of business and franchising concepts and what your role, as a franchisee will be. Franchisors do not expect that everyone will have a business degree or even a business background, but it’s good to exhibit comprehension of the basics.

Also, while you may not need a business plan, some experts advise having one ready, which outlines how you will grow your location and increase profit. Do your homework and know the brand.

How to Avoid Being Rejected

Nobody wants to be rejected, but this is the match-making process, and if something is off, now is the time to catch it before there are potential struggles and possible failure, down the road. Which is why this is such a stringent process.

Here are some pitfalls to avoid:

You will need to show documentation of sufficient capital. Inadequate finances are the number one reason you may be rejected as a franchisee.

Prepare for interview and discussion with key franchise members. Franchisors want partners who are well-versed about the brand and will represent it well.

Even if you do not have a business background, study the intricacies of the franchise to show that you are willing to learn and are motivated. Prove that you will be an equal partner in this endeavor.

Franchising with AAMCO

Partnering with franchisees that want to be a part of an iconic legacy brand, like AAMCO is what we’re all about. Once known as transmission experts, AAMCO is poised as a leader in the total car care market. Our franchise process is developed to help us learn about each other. At AAMCO, we call it our Mutual Evaluation Process. It takes you from your initial request for information, and application, through Discovery Day and signing.

We are transparent through the entire franchise application process especially regarding your funding requirements. We want to confirm that you are financially equipped to be a success.

The total investment to open a new AAMCO auto franchise ranges from $223,600 to $330,500. This figure includes a $39,500 franchise fee, as well as the costs for equipment, training, and leasing a property.

Franchise candidates should have a minimum of $60,000 in liquid capital and a net worth of at least $250,000 to get started.

If you would like to be a part of the AAMCO brand and you know you have what it takes, click here to download your free franchise information report.

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