- 1). Research and determine what type of business account is best for the franchise. There are many choices for franchise owners when it comes to banking, so carefully review all aspects of the account terms, such as: How many checks are allowed to be written monthly? When are deposits accepted and posted? Is there overdraft protection? If you accept credit cards, what is the processing fee and time to post after customers buy goods or services? Are there monthly fees? Does it offer free transfers between accounts?
- 2). Gather all necessary documentation. Once you select the best account, gather all required documentation to open the account. This will include at least the franchise address, EIN (Employer Identification Number) or SSN (if sole proprietorship), driver's license, business license(s), franchise fictitious name certificate and any other credentials the bank deems necessary to open the account, along with an opening deposit.
- 3). Open the business account for the franchise. Franchisees may open business accounts online with many institutions, but it is more advantageous for franchisee to visit a local branch to make the acquaintance of the branch manager and to ask questions and explore options that may not be listed online. This will allow for relationship building with the bank and give the franchisee clear information about which account best meets their needs.
- 4). Read the welcome packet for information as to the limitations (number of checks allowed to written per month, fees, etc.) as well as the terms and conditions for the account. There will also be information about obtaining lines of credit and securing loans as well as literature for other services, such as merchant credit card processing.
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