Finding Franchise Candidates; Is Your Business Conversion Friendly?
May 2, 2008 by
The eternal question: “How do I find the right franchisee?” In my opinion, this is no different than trying to find the “perfect” employee. Either way you are taking a chance; the difference is how well you target franchise candidates and interview the person. You will be surprised that many franchise systems have brought on…
Finding The Perfect Franchisee
September 20, 2011 by
Let’s say you have finished all the steps to franchising, are now offering franchises and are looking for the perfect franchisees for your system. This is a very exciting time and as a new franchisor your focus is now on talking with applicants and bringing on qualified individuals as franchisees. When you start looking to…
There Are NO Stupid Questions about Franchising!
April 5, 2011 by
The decision to franchise is a big one. Are you asking the right questions? Over the last few years so many “drop ins” have entered the franchise development industry. Be watchful of deception out there and make sure you are talking with franchise developers. You need to ask the right questions about franchising to ensure…
What Financials Do You Show to Prospective Franchisees
July 8, 2013 by
When you franchise your business, you may wonder, “Do I have to show prospective franchisees my financials?” The answer is yes, but probably not the financials you are thinking about. As part of the franchise development process, financial statements are prepared for your franchising company. This is the company that will be offering franchises and…
Your Business May Be Ready to Franchise, But Are You Ready?
September 8, 2008 by
You built a successful business. Customers know your name, your operation is working and you have started thinking about how you can grow beyond your current location or market. For many business owners, franchising your business seems like the logical next step. After all, if your business is successful, why not teach others how to…
Does Your Business Measure Up For Franchising
December 13, 2012 by
A while back you started your business and it has been doing great. You have survived recessions, pandemics and maybe even natural disasters. Things are humming along quite well. Perhaps you have a team running your business and you find yourself not as involved in day-to-day operations. You have morphed into the role of a…
What is the Basic Difference Between a Business Owner vs an Entrepreneur
September 14, 2010 by
When thinking about franchising, it is important to know your mindset. Are you a business owner or an entrepreneur? In a business conversation, the terms “small business owner” and “entrepreneur” are typically used interchangeably as if they mean the same thing. So, is this a matter of semantics? Or is there an important distinction to…
Should Franchisor Be My Next Job Title?
November 1, 2010 by
You built a successful business. You know what it takes to find customers, deliver great products or services, manage employees and overcome the daily challenges that come with being a business owner. Now you are thinking about the next stage of growth and thinking about franchising your business. You have considered opening additional locations but…
Does a Business Need to Be in Operation Before Franchising
April 7, 2012 by
One of the most common questions about franchising is, “Does a business need to be in operation before franchising?” Legally speaking, a business does NOT need to be in operation in order to franchise. You can franchise a business that is not up and running and there have been several franchise systems that have been…
Do I Need to Show My Business Financials to Franchise?
November 15, 2011 by
One of the misconceptions we hear from business owners considering franchising is that they need to have several years of their own business financial statements available so they can franchise. You may have even been told that you need two or three years of financial history before you can franchise your business. That’s a franchise…
How to Research Companies That Do Franchising
January 31, 2020 by
You are serious about wanting to franchise your business and so you start doing your research on companies that do franchising. You are not sure who to trust or what to believe. There are so many companies that you come across that offer franchise development in addition to a potpourri of other services. You are…
Making Sense of the Franchise Fee and a Franchise Territory
July 29, 2016 by
There’s a common misconception out there that when a person buys a franchise, the franchise fee that is paid by the person buying a franchise is contingent upon the size of the franchise territory that is awarded. While this is currently not the case, there was a time years ago, when franchisors charged a fee…
Understanding Franchise Fees and Royalty Fees
March 22, 2008 by
One of the most common questions asked by business owners (like you) who are interested in franchising is “What is the difference between a franchise fee and franchise royalty fees?”. These two terms can be confusing so let’s explore the franchise fee first. Franchise Fee The franchise fee is a one-time fee that is paid…
How to Prepare for Franchising Your Business
December 30, 2015 by
Whether franchising your business has been your goal since you started operating or you’re just starting to consider it; you’ve probably wondered, “What are some of the things I can do now to help prepare for franchising my business?” Since much of franchising is about duplication, let’s review what you can do now to make the…
Beyond Franchise Development: Funding Your Franchise Company
March 4, 2010 by
When you’re considering franchising your business, most of your attention is naturally focused on how to franchise and what it will cost to create your franchise program. But there is another financial consideration you need to know about. As part of the franchise development process, we will create a separate company for you that will…
What Do I Get Out of Franchising My Business?
February 15, 2012 by
Each day you pour your heart and soul into your business. You work hard to be the best, providing superior service and great products resulting in happy, loyal customers and/or clients. If you are like most business owners, the payoff for all your sweat equity is not just simply in revenues, but in the flow…
Why You Need Franchise Marketing Collateral
January 24, 2015 by
Imagine for a minute you are done, yep you have worked hard to franchise your business. You have thought through every detail during the process of setting up a franchise for your business. Now, you are ready to tell prospective franchisees exactly why, out of a myriad of franchise opportunities, your franchise is the best….
Who Finds and Builds Out the Site for a Franchisee?
January 14, 2016 by
When the term “turnkey” is used in franchising there is sometimes a misconception that if someone buys a franchise, they are told, “Okay great! Call me in a few months and I will give you the keys.” Someone might think that all they have to do is pay you a franchise fee and they are…
If I Don’t Franchise I May Be Missing Out
February 8, 2011 by
No doubt the idea of expanding your business and growing into different markets is something you have thought about often. However the challenge is HOW to do this without adding tons of overhead, without spending a lot of money and without the additional headaches of managing each location and employees. Perhaps you have even thought…
Is a Franchisor Required to Advertise for Franchisees?
June 30, 2012 by
True or False? Advertising is a marketing tool that is essential to any business’s success and can range from networking strategies to million dollar media campaigns. Within a franchise system, advertising is equally important. In fact when talking about franchising and advertising, there are specific obligations that the franchisee must follow in terms of advertising their…
5 Reasons You Should Not Franchise Your Business
February 5, 2014 by
One of the biggest misconceptions about franchising is that every successful business should become a franchise. Nothing could be further from the truth. Every year we talk with hundreds of business owners who are interested in franchising their business. Surprisingly, more often than not, we advise many of these ambitious business owners against franchising. Why?…
Franchising and Building Trust MUST Go Hand in Hand
July 26, 2011 by
Trust is the Foundation. Retailers say the three most important elements to success are “location, location and location.” Experienced franchisors will say that the most important elements in a successful franchise system are building trust, being trustworthy and maintaining trust with franchisees. Franchising is more than just offering your products or services in other markets….
Does Being Solicited by Retailers Mean You Should Franchise?
May 21, 2019 by
One day you get called by a retailer or someone from a property management company who says they want to put your concept in their space. This type of call does well for your ego, gives you validation along with a sense of demand for your business. Then you realize, wait a minute I am…
Franchise Partner Why this is a Bad Word
May 9, 2018 by
Recently we had a conversation with someone who was very eager to franchise his business and said he wants to be more of a “franchise partner” with people who buy into his concept. This business owner was using the term “franchise partner” loosely. As you will see below his intent was in the right place,…
Franchising and Opening Locations Simultaneously
October 6, 2015 by
As you know, franchising has been a catalyst of growth for businesses for many decades now. One of the obvious reasons why a business goes the route of franchising boils down to resources. By resources we are referring to money and talent. Let’s face it, franchising is centered on the idea of using other people’s…
What a Franchisee Gets for Their Royalty Payments
May 31, 2011 by
Many people realize that owning and operating a franchise is one of the easiest ways to become a successful business owner. As a franchisor, you will collect a one-time franchise fee. This franchise fee is intended to reimburse you for getting your new franchisee trained, setup and running their business (more on the franchise fee). In…
When Establishing a Franchise is it State Specific?
October 12, 2017 by
You built your business to franchise. Yep, you want to scale it nationwide, so what are some important things to know when establishing a franchise and how to make it effective nationwide. Franchising is regulated by the Federal Trade Commission in an effort to protect franchisees against fraud. This is why franchising is considered a…
Want More Locations But Don’t Want to Hire More Employees?
August 6, 2012 by
You’ve probably heard this statement (or something like it), more than a couple times…maybe from someone at a networking mixer, or even from a business owner you know. When you hear this, your immediate response should be: “Have you ever thought of franchising?” It’s nearly every business owner’s dream that their business goes viral and expands…
What Does It Really Mean to Franchise My Restaurant?
March 1, 2019 by
If you are the type of restaurant owner who likes to create menu items then you might be able to relate to this piece. When creating a new menu item, it all starts with a vision; then you plan it out and carefully pick your ingredients. You then prepare the item and along the way…
Successful Franchising is Keeping Franchisees Engaged
December 13, 2017 by
You have been thinking about wanting to franchise your business. Besides the glory and the money you make, have you thought about what your job will be as a franchisor? One of your jobs as a franchisor is to keep your franchisees satisfied and engaged. So you might ask… when franchising, what are some of…