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How long does it take from the time of application to opening a franchise?
This depends on the type of franchise system you are joining and a number of different issues. Firstly, it depends on the franchisor’s own recruitment procedures. The franchisor may require you to attend a number of meetings, prepare a business plan and research the local area that you are interested in before you will be accepted as a franchisee. Much will also depend on whether you require finance from a bank and how much you need to borrow. Banks are being more cautious now about lending and generally they take longer to consider applications for finance than used to be the case.If you need to find premises for your franchise, this can add to the time before your franchise can open. It can sometimes be difficult to find suitable premises right away, especially if you need a particular planning use. Once you have found premises, they will need to be approved by the franchisor and then you will need to negotiate the lease or acquire the freehold. You may also need to obtain planning consent. The premises will then need to be refurbished and fitted out.The franchise agreement and any other documentation you have to sign will need to be reviewed by yourself and then sent to a franchise lawyer to review and provide written advice. This will usually take several weeks.Finally you will have to undergo and successfully pass initial training in the franchise system - the length of this can be several months or a matter of days, depending on the nature of the franchise.In any event, a franchisor should be able to tell you how long it normally takes to recruit a franchisee and for the franchisee to open for business.
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