3.05 – Meeting Your Franchise’s Requirements
Developing your location to meet the franchisor’s standards, including layout, décor, signage, furniture, fixtures, and equipment, is a crucial step. Most franchisors provide a layout that you will need to have an architect or builder adapt to fit your location. This section explains what you need to do.
Implementing a Franchisor's Designs
Every retail and restaurant franchisor has a detailed floor plan, or footprint, that must be followed exactly. Even minor changes, like adjusting counter length, require franchisor approval. Review these specifications and standards with your architect and contractor.
Franchisors usually provide prototype plans for each location. Your architect must develop plans that meet both local ordinances and the franchisor’s standards. Don’t assume you can add improvements to the design without approval.
Check with your franchisor before making expensive changes that may need to be reversed.
If local restrictions conflict with the franchisor’s building plans, notify the franchisor to discuss the required changes. The franchisor may personally contact the builder or city planner to discuss significant changes.
Generally, the franchisor will provide a list of sources for the equipment, décor, and other items you’ll need to purchase. Before opening your business, you will typically need the franchisor’s approval that your location meets its standards.
Getting Approvals, Permits, and Licenses
Whether renovating an existing leased site or building a new one, you must prepare preliminary plans and specifications for approval and permits from your local zoning board and building department. Submit these plans to your franchisor and your banker or lender.
If building a site, touch base with the local zoning board and building department before closing on the property and starting construction. Ensure compliance with all regulations, including local ordinances that set construction hours. Determine if the town needs to approve any variances for the property and whether the site will support your needs for utilities, parking, and other essentials.
Early discussions with the municipality are crucial. Even if your use is permitted, the planning board may have requirements that could make the site unworkable for you. Green-space setbacks or water-retention basins, for example, can push your building out of sight of approaching traffic, which can be detrimental if your business relies on impulse purchases.
Although your contractor or architect usually handles pre-construction legwork, ensuring everything gets done is your responsibility. Your contractor needs to obtain the following:
- Permits: For construction, utilities, signs, curb cuts, and environmental matters.
- Variances: If you need the town to approve some specific violation of the zoning requirements for your site.
- Certificates of Occupancy: To allow you to occupy the location.
Beginning Construction
After your franchisor approves your site plan, it’s your responsibility to build out the location to the franchisor’s standards and meet local building codes. Selecting a reputable commercial contractor experienced in meeting deadlines, securing necessary permits and approvals, and complying with the franchisor’s quality requirements is critical. Your franchisor and other franchisees can provide information on how long the construction process typically takes.
Getting Help with the Opening
Many franchisors provide in-person assistance before and during a location’s grand opening. The amount and nature of this assistance vary greatly by system. Some franchisors send a single field consultant, while others send a team of field consultants who arrive up to a week before the grand opening and stay until the franchisee is ready to run solo. Pre-opening and opening assistance can include the following:
- Marketing Guidance: Providing guidance on the type of marketing and advertising a franchisee should conduct for the location’s market introduction and grand opening.
- Inventory Orders: Placing initial orders for opening inventory and supplies.
- On-site Training: Conducting additional on-site training for the franchisee and its management team. Many franchisors historically provided some training to a franchisee’s staff at the franchisee’s location in connection with the opening. However, due to concerns about being declared a joint employer of a franchisee’s staff, franchisors are increasingly providing train-the-trainer programs for franchisees and expecting franchisees to train their own staff.
- Compliance Checks: Ensuring initial compliance with brand standards.
Check your franchise agreement and Item 11 of the Franchise Disclosure Documents (FDD) regarding the opening assistance you can expect to receive from your franchisor.
