5 Steps in Preparing To Purchase a Franchise

Posted on Jun 12th 2018


5 Steps in Preparing To Purchase a Franchise

You love children and are passionate about providing a valuable service to families in your community. You are a “people person,” and love going the extra mile to get things done. What’s more, you’ve always been confident that you have what it takes to make a business successful.

But, before making any purchasing decisions, you’ve done your homework.

For instance, you’ve learned that the under-age-five demographic is rapidly growing with no signs of slowing down.

Studies about parents introducing preschoolers to activities supports your own observations about the moms and dads in your own community.

Also, you’ve probably discovered there is little-to-no competition in the market for well-rounded enrichment programs that develop the whole child.

Probably, this passion and knowledge is what led you to Romp n’ Roll.

We’re glad you’re here, and we’re ready to help.

As Allison Giovenco, Director of Sales and Franchise Support—points out, with Romp n’ Roll, you get a lot of training and support. Our industry professionals “help you make the most out of your business.”

No matter what you ultimately decide, we want to help you be informed. Therefore, we have outlined the following steps so you know how to prepare for a Romp n’ Roll franchise.

#1: Finding That Perfect Fit

Success for both you and Romp n’ Roll is dependent upon finding and building a solid partnership.

We’ll reach out with a phone call after you fill out our simple request form. We’ll discuss your personal goals, what we look for in a franchisee, and answer your questions.

If everyone feels comfortable moving forward, we’ll ask you to fill out a confidential questionnaire.

Then, we’ll look at the answers in your questionnaire to make sure basic requirements are met.

If everything looks good, we’ll send you our Franchise Disclosure Document (FDD).

This is our version of a document the Federal Trade Commission (FTC) mandates every franchisor must provide for prospective franchisees.

This document, and the exchange of information associated with it, is designed to help us both make a sound business decision. Any investors or lenders may also ask to see our FDD.

Here are some of the things you’ll discover in our FDD:

  • Your responsibilities as a franchisee
  • Any fees you need to pay
  • Our processes, rules and regulations
  • Romp n’ Roll’s financial performance and business history

#2: Business Plan

Preparing a compelling business plan is a critical step in your process.

So, you’ll need to provide convincing data and details in order to persuade lenders and investors to finance your business.

To help you formulate your business plan, here is some of the information we’ll provide you with:

  • Details on support services we provide franchisees
  • Historical revenue and expense information (as provided in the FDD)
  • Initial demographic report for your market

These documents will help you prepare qualified forecasts on startup costs, expenses, and potential revenue.

#3: Discovery Day

This is a step many franchisors take with potential franchisees they are considering after reviewing their business plan.

Up to this point, you will have had a great deal of interaction with Romp n’ Roll via phone calls and emails. Discovery Day is a chance for everyone to meet face-to-face. If both parties want to move forward in the process, you’ll be invited to Romp n’ Roll’s Discovery Day in Richmond, Virginia.

You’ll get a personal feel for the business by speaking with current franchise owners, staff, and management.

After Discovery Day, we’ll speak again to arrive at a mutual decision regarding moving forward or not. If you will be joining our family of businesses, we will ask you sign our Franchise Agreement.

We aim to “make sure that there’s a good fit between the franchisee and the franchisor,” says Rachel Stender. As Romp n’ Roll’s Franchise Development Director, Rachel looks for great partnerships “that can be long-term.”

#4: Financing to Purchase a Franchise

Securing financing to pay for your franchise is a necessary step for most people. This is where your solid business plan from step #2 comes into play

Here are just some options to discuss with your financial advisor:

  • ROBS (Rollover or Business Startups)
  • SBA (Small Business Administration) Loan
  • Bank Loan
  • Partner Financing

#5: Site Selection

Picking a great location for your business is very important. That’s why we take such a supportive role during this critical phase of start-up.

There are location guidelines we have honed over the years that put our franchisees in the best position to succeed. We will act as advisors throughout this process to help find you the best possible location for your franchise.

We will work with our real estate partners to help you in site selection and lease negotiation.

We’ve Got it Down to a Science

While this all seems like it should take an eternity, it usually happens rather quickly.

The first four stages typically happen in just over three months, if all goes well.

We look forward to working with you to help make your dreams a reality.

Michael Barnett

Michael Barnett is the Co-Founder and CEO of Romp n' Roll. In addition to leading the Romp n' Roll management team, Michael is an active member of the International Franchise Association, the National Association for the Education of Young Children, and serves on the Board of Directors for Connor's Heroes and Juniata College Center for Entrepreneurial Leadership. He and his wife, Babz, were featured on the first season of ABC-TV's Shark Tank.