FAQ

Why Should I License My Own Franchise?

Franchising may allow you to take control of your career, finances, schedule, and future. You may operate the business, work
hard for yourself, and potentially reap the rewards that a franchise can offer.

How Do I Choose The Right Franchise?

Deciding which franchise is right for you is a huge decision. The right franchise should interest you, but the initial investment amount must fit into your budget, enabling you to live the lifestyle you desire (do you want more free time, money, and control over your work environment?). Additionally, any franchise you choose to buy must meet market demand in your community. If there is no market demand or the area is already saturated with similar businesses, your new franchise will not have a bright, long future ahead of it. The best advice is to do your research before signing a franchise agreement. Speak with current and past franchise owners and make sure there is, in fact, a demand for the business in the area you’d like to open the business.

Why Should I Buy A Franchise?

Regardless of industry or business ownership experience, you can purchase most franchises because the better, established
franchises offer complete training, comprehensive support, a proven business system, and a product or service that has proven to be popular and in demand.  “Better, established franchises…” are the keywords here. 

How Much Does A Franchise Cost?

The cost to buy a franchise varies greatly depending on what industry you choose to start the business in, whether the concept requires a storefront,
office, home office, or mobile, what state you buy the business in, and how much overhead your business will require. Some concepts offer lower costs, while other franchise businesses require the investor to have millions of dollars in available liquid capital. Additionally, some franchise concepts offer some financing or can help you gain third-party financing if you’re qualified.

Can I Have A Business Partner?

This varies depending on the preferences of the franchisor, but yes, most concepts will allow you to have a financial partner who may also be
an operating partner, if you choose.

Can I Own More Than One Franchise?

Yes, but again, this can vary by franchise concept. Many franchisors will sell area or master franchises within a certain specified territory. These
larger territories can be costly. If you own a single franchise and are successful, most franchisors will be pleased to sell you another territory. If you own one concept and would like to purchase another franchise from a different, unrelated brand, this is usually possible unless you plan to
buy a competing concept. Make sure to read the entire franchise agreement and also have an attorney who specializes in franchise law look over the
agreement before you sign it. Let your attorney know that you plan to purchase another franchise concept in the future, so he can ensure you won’t have problems.

How Can I Receive A FDD From
A Franchise Company?

After your initial contact and discussion with Kim, you’ll be presented with three to five franchises that may interest you. Once established,
and with your permission, you’ll likely speak with the franchise development individual who works for the franchise you’re interested in. If you
are seriously interested in the concept, they will likely offer you a copy of their FDD (Franchise Disclosure Document) for review.  Some FDD’s may be obtained in a few “registration” states that make them public.  I can assist you with that if the franchise is registered in one of these states.

Which States Are Franchise Registration
States?

Fifteen states have franchise investment laws that require franchisors to provide pre-sale disclosures, known as FDD’s to potential purchasers. These
states are California, Hawaii, Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North Dakota, Oregon, Rhode Island, South Dakota,
Virginia, Washington, and Wisconsin.

What Are The Best Franchise
Opportunities?

There’s a lot that goes into determining the “best” franchise opportunities. Startup costs, ongoing overhead, franchise fees, support, brand
strength, and financial stability can all play a role. Fast food service usually ranks high as well as service-based businesses like senior care
and mobile franchises.  The “Best” franchise is the one you’ve researched and believe in.

Is A Franchise Business Profitable?

When choosing a franchise, you’ll want to consider the things that make any business profitable. Things like overhead, startup costs,
franchise fees, and ongoing training and support can eat into your profits and affect your success. Research, due diligence, speaking with existing
Franchisees and those who have left various systems will provide you with the insight necessary to make a determination. It’s important to understand that NO franchise can guarantee your profitability and shouldn’t. 

What Is It Like To Own A Franchise?

Owning a franchise is like having the best of both worlds: you are essentially a business licensee and may potentially gain financial freedom (although this is never guaranteed. You may also have the backing of a strong brand. The better franchise companies have taken away all the guesswork in starting a business and do a lot of the heavy lifting for you.  This doesn’t mean you’ve no work to do. Success in franchising is never easy.

What Are Some Tips For Starting A
Franchise?

If you’re considering a franchise, your first step is ensuring you have what it takes to run a business. You’ll also need enough capital
to purchase the franchise and give yourself a cushion while ramping up. Talk with other franchisees to learn more about the opportunities you’re exploring. Most importantly, be willing to work hard.

Are Franchises Considered Small
Businesses?

Franchises are like small businesses but with the backing of regionally or nationally recognized brands in some instances. It is said that these models tend to have a higher level of success than a typical small business, and you get all the benefits of having your franchise, hiring staff, and setting your schedule where possible.  This is another critical area of due diligence you must feel confident about.

What Finally Pushed You To Start Your
First Business?

Time and financial freedom are the most common drivers of starting a business. In many cases, it’s a great way to possibly increase your earnings 
and not have to rely on someone else for job security.  However, no business start-up is without risk. 

Is Franchising Right For You?

Franchising can be a significant investment, but it’s not for everyone. You might be a good fit if you have business experience, are self-driven,
and can work independently. You should also be able to weigh risks and recognize good opportunities carefully.

What Are The Pros And Cons Of
Franchising?

A considerable advantage of franchising is that you get a turnkey business with very little guesswork in setup. They may also have a robust system of support helping to guide the way to possible success. On the downside, you don’t have total control over how the business is operated. It can also require a significant upfront investment to get started.

What Is A Master Franchisee?

A master franchisee is a franchise operator over a specific area or territory. The franchisor gives the franchisee control over all franchising
activities, which means you’ll typically have multiple locations.

Should I Buy A Franchise Or Get A New
Job?

Ironically, buying a franchise is like getting a new job – one you create for yourself. If you have the capital, starting a franchise is
could be an attractive alternative to seeking employment. It gives you more freedom over your career and can potentially increase your earnings (although never guaranteed).

How Quickly Can I Open A Franchise?

Once you purchase a franchise, you can expect to open anywhere from two to nine months. Most of the work is already done for you in 
designing a store (if brick and mortar), sourcing equipment, and creating marketing materials. Your franchisor should be able to provide a more accurate timeline.

What Is A Franchise Discovery Day?

A franchise Discovery Day, Meet The Team Day, and other presentation titles are face-to-face meetings with a franchise company you’re considering. These usually take place at a corporate office and serve as your opportunity to go behind the scenes of the brand, ask questions, and decide if it might be a good fit for you. You’ll meet key personnel and “discover” more about the particular franchise.  We strongly advise that you never sign any agreement at this meeting.  You’ll want to process the information you received and not be pushed into “signing up.”  Leave the checkbook at home.

Do Franchises Have Defined Territories?

The majority of franchises follow a defined territory concept. This is helpful if you plan on opening multiple locations as a franchisee, as
it helps to protect your area from encroachment. It is vitally important that the franchisor provides absolute and easily understood criteria for
any protected site, territory, area, or location.

Can I Open A Part-Time Franchise?

Part-time franchising can work in certain conditions. This is a great option if you’re looking for a side hustle without giving up your current
job. Most franchises don’t require you to be open a certain number of hours or days to qualify.

Is It Wise To Take Out A Personal Loan
To Fund Your Business?

For some people, using personal loans to fund their business is their only option. It can also be risky, though, because you’ll be on the hook
for repayment even if your business fails. It’s essential to have a plan to repay the loan and to fully understand the terms of the agreement, generally known as “post-term covenants.”

What Businesses Are Best For A
Recession?

Recession-proof businesses are the ones that offer a service people need, no matter the state of the economy. Food and groceries, retail consignment,
accounting services, in-home senior care, technology and IT, and childcare may all fall into this category. Remember that recessions are just one of many threats that can impact a business’s ongoing success, and the term “recession resilient” that many franchisors use must be entirely vetted and rooted in reality.  

Where Can You Get Startup Money For A
Franchise?

Some franchisors will finance portions of the purchase, which is often one of your best options. You can also look into bank loans, SBA loans,
401k rollovers, grants, crowdfunding, or good old-fashioned loans from investors, friends, and family.