Once you realize the appeal of a joining a big franchise, the next logical question is, “Is it possible for me?” Even if you’re extremely interested in buying a McDonald’s or Subway or 7-Eleven, will those big-name players want to sell to you, Joe the Franchisee?
Absolutely, says Hardy Grewal, a longtime Subway franchisee and Subway’s development agent for Los Angeles County and Orange County, Calif. The chances for a regular guy to buy into a big brand like Subway “are there, if you have the capital and the background we’re looking for,” says Grewal, who receives about 4,000 applications every quarter. “We are still approving new franchisees now — maybe not to the extent as when the brand was growing originally, but there are always new opportunities.
Plus, people in the system may want to retire and sell stores, so we’re always looking into our pool of qualified people.”
Contrary to conventional franchising wisdom, Subway does seek the entrepreneurial spirit in new franchisees, Grewal says. Investors? Not so much.
“I sift out doctors or engineers who are looking for a second income,” he says. “We want people involved in the day-to-day and who want to expand the brand.”
Even in the current financial crisis, “don’t expect the larger and more experienced or important brands to panic and take in any candidate that simply has the money to open,” says Michael H. Seid, founder and managing director of franchise advisory firm Michael H. Seid & Associates and co-author of Franchising for Dummies.
Carry on reading.