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The process

How to buy a franchise: the actual sequence

Published

The process is more structured than most people expect, and the structure exists mostly for your benefit.

Buying a franchise follows a sequence that is broadly the same across systems, partly by convention and partly because a federal rule dictates the shape of the middle of it. Knowing the order makes it much easier to tell an ordinary process from a rushed one.

One: an enquiry, which commits you to nothing

You make contact and give a franchisor enough information to have a useful first conversation. This is not an application, it does not reserve anything, and it should not require financial documents or a signature. The process on this site works the same way.

Two: conversations in both directions

You ask about the brand, the method, and the support. The franchisor asks how you intend to run a business. Either side can decide it is not a fit, and that is a normal outcome rather than a failure.

A franchisor that only sells during this stage, and never asks you anything searching, is not evaluating you. That is worth noticing, because a system indifferent to who joins it is telling you what the operator standard is going to be.

Three: disclosure, and a waiting period

You receive the Franchise Disclosure Document. Under the FTC's Franchise Rule you must have it at least fourteen calendar days before you sign anything or pay anything, and some states require longer. What the document is and how to read it is the thing to have understood before this arrives, not after.

This is the real decision point, and the work in it is yours: read the whole document, call the franchisees who left, and take it to a franchise attorney and an accountant who work for you.

Four: negotiation, within limits

Franchise agreements are less negotiable than commercial contracts generally, because a system that varies its terms per franchisee becomes impossible to administer and creates disclosure problems of its own. Some terms move and many do not.

Where there is room, it is usually around territory definition and timing rather than around fees. Your attorney will know which is which in the jurisdiction.

Five: signing, funding, and opening

Then training, setup, and the operational work of opening. Financing is normally arranged in parallel with the disclosure period rather than after it, and the routes that exist are worth understanding early.

Limits

What this does not establish

This describes how the process works generally. Craftline has not issued a Franchise Disclosure Document and no date is being committed to for one, so stages three onward do not exist here yet. An enquiry today is a conversation and nothing more. The franchising section says the same thing at length.

More reading

Other guides in this section.

Have a question this did not answer?

No Franchise Disclosure Document has been issued, so there is nothing to apply for.

Franchise inquiry