Franchise Requirements: What’s It Take to Open a Franchise?

As a budding entrepreneur, you may be curious about the requirements to open a franchise. Fortunately, brands are clear about their criteria. Get insights about the franchise requirements you can expect from any franchisor, plus additional expectations for certain industries.

Conduct a Self-Assessment

Before you look at different franchise opportunities, you’ll want to consider the following:

• Skills and experience: What was your previous occupation? What skills can you pull from that experience into your new business? Strong time management and organizational skills are universally transferable and valuable across all industries.
• Financial resources: Determine your investment budget and how you plan to finance your venture before you inquire with different franchise brands. Meet with a financial advisor to get a firm grasp on your net worth and liquid assets – these will help you narrow down the right franchise opportunity for you.
• Interests and passions: Your interests are also important when picking a franchise investment. As an entrepreneur, you’ll be working in your business every day – especially at the start. Having a passion for what you do makes work much more rewarding.

Consider the above your “personal requirements.” Once you have a clear understanding of these aspects, you’ll be better equipped to choose a franchise opportunity that’s right for you.

General Franchise Requirements

No matter which franchise you research, you’ll come across the following requirements:

• Financial prerequisites: The franchisor will lay out all financial expectations during your introductory call. At that time, the brand will confirm the franchise’s net worth requirements and any liquidity standards. If you fit the bill, you’ll be able to proceed with the discovery process.
• Startup costs: These are the initial expenses you’ll incur when starting the franchise. Costs can vary depending on the brand and industry but generally include the initial franchise fee and total estimated investment costs. The franchisor can tell you how much you may spend on real estate, inventory and equipment, marketing, insurance, and other miscellaneous costs.
• Background and expertise: Some franchisors may look for candidates with prior industry knowledge. However, most expect potential franchise owners to at least have general business acumen or leadership experience.
• Commitment: Franchisors want enthusiastic entrepreneurs who are excited about the business. Even if you don’t have prior industry experience, franchisors value your drive to embrace their brand and learn their business model.

Specific Requirements by Franchise Type

Depending on the type of franchise you plan to invest in, there may be additional requirements you need to pay attention to:

• Service-based franchises: If you plan to focus on providing services, you’ll likely need specialized training or certifications relevant to the service offered. However, many franchisors will also offer comprehensive training to ensure you meet their standards.
• Product-based franchises: If you’re considering a product-based franchise, you’ll need a solid understanding of product supply chains and inventory management. This knowledge is crucial for maintaining stock levels, managing logistics, and effectively showcasing your merchandise.
• Home-based franchises: Owning a home-based franchise involves adhering to specific regulations and local zoning laws. Depending on the nature of your business, you may require extra insurance and special licensing to operate from your residence.

Franchise with Always Best Care

At Always Best Care, we offer an accessible opportunity to new and experienced entrepreneurs. We don’t require our franchisees to have previous care experience. Instead, we ensure our franchise owners are backed by a dedicated support team consisting of a leader, mentor, business coach, team builder, and crisis manager.

Interested franchise candidates should have a net worth of $200,000 and at least $100,000 in liquid assets to qualify for an Always Best Care franchise, with startup costs beginning as low as $90,000.*

Always Best Care is awarding new franchises throughout the U.S. and Canada. To learn more about our senior care franchise, request information today, and we’ll set up a call.

*See our Item 7 of our FDD to learn more about our franchise costs.