Starting a franchise in Arizona is an exciting opportunity to own your own business. Serving both larger cities such as Phoenix and Tucson, plus the many small towns that the state is famous for, Arizona offers a wealth of potential for entrepreneurs. Plus, the culture, art and natural beauty in areas like Sedona make it a great place to live and work. Especially if you are running a thriving business that allows you to take advantage of all the state has to offer. Here is a step-by-step guide for potential business owners looking to start a franchise in Arizona.
When considering any business venture, research is essential. It is important to be familiar with the brand, how it operates and how it is structured. Researching the different franchises available in Arizona can involve internet research, industry magazines or seeking advice from experts within the field. It is also wise to talk with the existing franchisees to get feedback on their collective experience. One hack for doing market research is to view the success of the franchise in markets that are similar to yours demographically. For instance, if you are in Oro Valley, you may look at the franchises in Catalina Foothills to see how they may fare in Oro Valley. After all, the locations have a similar population size, median age, and median household income level (HHI).
Step 2: Fee Structure & Financing
Franchise fees vary widely and can range from thousands to hundreds of thousands of dollars. Master franchise opportunities also involve additional costly fees. For example, if you choose a national brand, the start-up costs could be anywhere between $50,000 and $150,000. Meanwhile, a local franchise may cost only a few thousand dollars. Additionally, it is important to research the financing options available and weigh up the pros and cons of each. While one franchise may cost more and require more funding, the difference in revenue could mean the breakeven point is sooner with the more costly business.
Step 3: Franchise Disclosure Document
All franchisors are obligated to provide franchisees with a Franchise Disclosure Document (FDD). This document should contain information about the franchise including all costs and fees, restrictions, financial statements, impending litigation and the terms of the franchise agreement. Make sure you read all of the details included, as this is legally binding and legally non-negotiable. Plus, doing so can help you avoid getting involved with a business that is in hot water legally or financially.
Step 4: Choose a Lawyer
It is highly recommended to select a lawyer experienced in franchise law to look over the FDD, as well as negotiate any requests on the franchise agreement. Your lawyer will be able to provide professional advice and look out for any potential legal or financial issues that may arise.
Step 5: Choose a Location and Open Your Franchise
When selecting a location, consider several factors such as the required space, type of population, competition and viable customer base. In addition, you must consider the applicable zoning and licensing requirements. When it’s finally time to open for business, you’ll be ready to hit the ground running.
Stop putting your dreams on hold. Starting a franchise in Arizona is an exciting opportunity to own your own business that can create financial success and personal satisfaction. By researching and preparing for the steps involved, you’re in the best position to make a wise decision and have a thriving business. Get started now by viewing some of the best franchises available in Arizona. See below.
