A guide to buying a franchise: Steps, costs, and what to expect
Many entrepreneurs explore buying a franchise when they feel ready to grow, but want a model they can trust. Franchising offers a blend of structure and independence that makes the entrepreneurial journey less overwhelming. If you want to understand the process more clearly, this guide to buying a franchise lays out the steps, costs, and details you should know before diving in.
Key Takeaways
- The process of buying a franchise becomes easier when you understand its stages, financial requirements, and long-term expectations.
- Franchising blends independence with a proven system designed to guide new franchise owners.
- Comparing industries, support models, and operational roles helps you match a franchise to your goals.
- Launch readiness often depends on your financial plan, comfort with structure, and experience level.
- Clear training and onboarding systems help franchise owners grow with confidence.
Why entrepreneurs choose to buy a franchise
Many entrepreneurs choose to buy a franchise business because it offers a structured path to business ownership. Instead of creating every operational detail from scratch, you start with a model that outlines how to run and grow your business. This helps you focus on customer relationships, local outreach, and daily management.
Franchising also appeals to those who want to reduce the uncertainty that comes with launching a new business. You gain access to a brand that already has community presence, which can help you build trust faster. This is why many aspiring business owners begin researching how to own a franchise when they want a clearer starting point.
A franchise works well for people seeking a career shift, a long-term investment, or a business with built-in support. It is especially appealing to people who have reached an earning plateau in their career and want to increase their income potential, or people who have long held a more corporate role and feel ready for the challenge and reward of working for themselves. The combination of independence and guidance makes franchising an attractive option for first-time entrepreneurs.
Understanding the franchise model
A franchise operates through a partnership between the brand and the local franchise owner. You receive the right to operate under the company’s name and use its systems, while you follow brand standards to ensure consistency of operations and marketing. In return, you gain access to tools, training, and resources that support your daily operations.
This model is designed to help you move quickly and avoid common early mistakes. Franchise owners benefit from established operational playbooks, robust marketing support, updated technology platforms, and ongoing business coaching. Many entrepreneurs look for a scalable commercial model when choosing the franchise that fits their goals.
Understanding this framework helps you decide whether franchising aligns with your work style. If you prefer structure and support, it can be a desirable path. If you prefer full autonomy, an independent business might feel more natural than a franchise.
Key steps to buying a franchise
The process of how to buy a franchise business is more straightforward when you break it down into stages. Each step helps you evaluate your readiness and understand what a brand expects from new franchise owners.
- Self-assessment. Think about your strengths, preferred industries, financial comfort level, and long-term goals.
- Industry and brand research. Explore different franchise industries and compare how they operate. If you’re considering staffing or HR services, resources like a staffing franchise guide can help you understand the field.
- Introductory call. Brands typically start with an initial call between you and a franchise salesperson to meet you, understand your motivations and background, and explain their model and answer basic questions.
- Franchise Disclosure Document (FDD) review. The FDD is a standard legal document that all franchisors must publish annually. It outlines fees, performance data, training, support, and legal requirements.
- Validation interviews. Speaking with existing franchisees helps you understand their day-to-day experience and ramp-up timeline.
- Discovery Day or brand visit. Many brands invite prospective business owners to their headquarters or another central office location to meet the leadership team, learn about support systems, and experience the company culture.
- Agreement signing and onboarding. Once you move forward, you begin training, location setup, and operational preparation.
Understanding these steps helps you see what to expect as you explore how to obtain a franchise and prepare for franchise ownership.
Evaluating franchise opportunities
Evaluating your franchise options is one of the most important parts of buying a franchise business. A clear evaluation process helps you compare brands based on your budget, lifestyle, and long-term plans.
Consider these core factors:
- Brand history and credibility. Look for franchising brands with clear experience and strong support systems.
- Training and ongoing support. Find out how the brand prepares new franchise owners and what ongoing guidance looks like.
- Industry fit. Choose a field that matches your interests to keep daily work engaging.
- Local demand. Confirm that the business model solves a real need in your area.
- Growth opportunities. Ask about future pathways, including multi-unit ownership or the potential for franchise resale.
Taking time to compare these points helps you select a franchise that aligns with your long-term plans
Understanding franchise costs and ROI
Most franchises include three main categories of expenses: the initial franchise fee, setup costs, and ongoing royalties. These fees support your onboarding and training, fund national and local marketing resources, and grant you access to the brand’s systems.
One of the most common early questions involves how to afford a franchise, especially when comparing different industries. Many entrepreneurs use savings, business loans, or franchise-friendly lenders to build a funding plan that supports their launch.
Return on investment depends on factors such as market demand, industry strength, operational consistency, and how well you apply the training you receive. Reviewing investment earnings through the FDD helps you understand what established franchise owners have achieved and what contributes to long-term performance.
A clear financial plan will help you choose a franchise that fits both your goals and your comfort with risk.
Take the first step toward franchise ownership
Buying a franchise business gives you a guided way to start a business while still having the freedom to run your local operation. With structured training, brand recognition, and a support network, many new business owners find franchising to be a strong and approachable path.
If you’re considering people-focused industries like staffing, Spherion Staffing offers a model built on support, local business ownership, and community involvement. Start your franchise journey with clarity and explore opportunities with Spherion today.
FAQs about buying a franchise
Before selecting a brand, it helps to understand the common questions new franchise owners ask. These FAQs provide a quick overview of what to expect:
How much money do I need to buy a franchise?
Costs vary by geographic area, brand and industry. Most franchise owners prepare for the franchise fee, setup expenses, and several months of operating costs.
What questions should I ask before buying a franchise?
Ask about training, daily responsibilities, ramp-up time, and local market demand. It also helps to understand the level of support you’ll receive after opening.
Can I get financing to buy a franchise?
Yes, many lenders offer funding options designed specifically for franchise owners. Some brands may also guide you toward helpful financial resources.
What are the risks of buying a franchise?
Risks include financial commitment, market changes, and the responsibility of following the brand’s system. Reviewing the FDD and talking with existing franchise owners can help you understand these risks.
How long does it take to open after signing?
Most franchise owners open within a few months after training and setup are complete. The exact timeline depends on the brand and the requirements for your location.