A franchise owner (the franchisor) typically allows the investor (the franchisee) to purchase a license that allows them to become a local business owner/operator using the franchisors proprietary business system, usually within a given territory. This initial license purchase, usually called a “franchise fee” also covers the franchisees’ initial training which is often held at the company headquarters. If required, the franchise also helps with the site selection and buildout for the physical location. Franchises also do a lot of demographic research to carve out desirable territories for their owners. Then, on an ongoing basis, franchisees typically receive marketing, website and general business support as well as the use of the franchisors brand, trademarks, software and proprietary tools. In return for all of this, the franchisee pays a small percentage of sales (called royalties) to the franchisor on a monthly basis.

Some things may seem obvious: Does the franchise have a track record of success? Are their franchisees happy? What is the cost, and what skills and or experience are required (if any)? Also, do you want to work near, or perhaps in, your home? You also need to understand the hours and personal commitment that will be needed to run a specific franchise. However, other important factors may not always be so obvious. For example, does your personality fit the business – do you need to be outgoing or very empathetic, or detail oriented or have strong sales skills? Signing on with a franchise that’s a bad fit can have disastrous results.  We can help you!