A Plan for Selecting a Tanning Center Franchise

You've made up your mind - you're definitely going to buy a Tanning Center franchise. But which one should you select? Making that decision requires a little legwork. When researching franchise opportunities, it's important to have a firm plan set out in advance. Then, once you've worked your way through each of the steps, you will know whether or not a franchise is the right one for you.

Step One: Read the Franchise Offering Circular

The offering circular gives you all the basic information about a particular franchise system. By law, the franchisor has to give you the circular at your first direct meeting or at least ten days before you are required to sign a franchise contract. The circular will be extensive, covering twenty-three topics related to the franchise, as well as providing a sample franchise agreement.

As you're reading the circular, certain questions are apt to come to mind. This is your cue to take action - start making a list of all the questions you want to ask the franchisor and another list to ask current franchisees. If there is anything too technical that you don't understand, consult with a franchise attorney for explanation.

Step Two: Interview Current Franchisees and the Franchisor

Begin to interview franchisees within the system - they are your inside scoop about how the business really functions. Most franchisees will be open to your questions and willing to help. If they're not, this may be a clue that there are problems within the system that they aren't comfortable talking about.

Plan to consult with eight to ten franchisees and be sure to ask them all the same questions - structure your interview and don't simply fly by the seat of your pants. If you try to do the interview this way, you might find yourself forgetting to ask an important question. Better to be prepared and cover all of your bases at once.

As you speak with the franchisees, new questions will arise. Make note of them and use these questions as a guide the next time you speak with the franchisor. When you speak to the franchisor, take careful note of their answers - are you satisfied with the response or do you have any lingering issues? How a franchisor answers your questions now is a good indicator of how they will work with you in the future. If they seem reticent and unwilling to answer a question, this should sound an alarm bell to you - proceed with caution.

Step Three: Revise and Repeat

Now it's time to review your interview notes. Did many of the franchisees answer a particular question the same way? If so, you've probably learned all you can about that issue. Set that question aside and add new questions to the interview instead.

With a new list of questions in hand, start the whole interview process over again. Complete another eight to ten phone interviews and again, take careful note of their responses. What's next? You got it - talk to the franchisor again and get more answers. If the Tanning Center franchise opportunity still looks good at this point, then move on to the next step.

Step Four: Visit Several Franchises

With a list of questions and concerns prepared, visit several franchisees in their place of business. As you do this, your level of dedication will shine through to the franchisee and they will know that you're serious about the opportunity. As you're meeting with the franchisee on their home turf, ask yourself: "Can I see myself doing this? "Is this the right business for me?" "Would I be happy here?"

If you're meeting with franchisees in your local area, they might see you as potential competition - with mixed feelings about helping you. On the other hand, they might view you as a potential new resource in the system. Keep these considerations in mind when you visit in any case.

Having another set of eyes and ears on the visit is always a good idea. Bring along your spouse or any other family member who might be involved in the business. Ask them for their honest impressions and opinions - did they see any problems that you didn't notice? Does the franchise seem to be a positive place? Does the staff have a good attitude? Remember to ask the franchisee the big question: "Would they do it all over again?" If most of them say no, there's probably a genuine reason why and you would be prudent to think twice about selecting that franchise.

Step Five: Visit the Franchisor's Home Office

Now it's time to visit home office. Arrange to visit all the key management there, as well as those in charge of training, finance, marketing and customer service. Be prepared with a list of questions and treat these meetings as information interviews - are they the kind of people you want to work with for the next several years?

Still interested? Then it's time to get serious and hire professional help. Find a knowledgeable franchise attorney who can review the circular and the franchise agreement, and an experienced accountant to review the financial history and potential growth of the franchise.

Taking all of this information into consideration, from your own personal impressions during the interview process to your professional legal and financial guidance, it's time to decide once and for all - is this the right Tanning Center franchise for you?

Yes? Great! Now it's time to get busy. Even if your answer is no, you can rest assured knowing that you conducted a serious and thorough investigation and you can go into your next one with your eyes wide open.