What is franchising?

Franchising is a way to be in business for yourself, but not by yourself. The companies that franchise their business are looking for true partners that will be ambassadors of their brand and trust that franchisees will grow the business using their proven systems. With over 5,000 brands to choose from, it can be overwhelming to decide what concept is best. Linda has over 200 pre-screened franchises that have committed to this proven investigation process, so there will be consistency as you proceed with due diligence.  LEARN MORE

How do I know which franchise is the best fit for me?

Since the year 2000, Linda has helped hundreds of people figure out what they are looking for, using the proven FranChoice technique. She accomplishes this by getting to know you, personally. She digs in and asks the hard questions while guiding you with compassion and understanding. You will feel as if you are family while Linda guides you through the turbulent waters of entrepreneurship. You will feel the comfort of a buoyant wetsuit as she points you to the safe shores of franchising..

How do I know if I’m destined for franchising?

Linda has separated pretenders from contenders for many years. She will be able to help you understand what it takes to be a franchisee and will not let you move forward if you are not a good fit. If you are a good fit, she knows what is necessary in order to make the perfect match between a true buyer and franchisor. Her sharp listening skills, broad knowledge and discriminating judgment in the franchise industry are paramount in helping people control their destiny and realize their dream of becoming independent business owners.

How do you ensure success?

Experts state that there is a much higher success rate when the owner is excited about the business. Linda focuses on the business attributes that you have interest in. Sometimes this means simply getting excited about the business model. Other times, there needs to be passion for the product or service. It’s up to you and Linda to uncover what path is best for you. You will discuss risk tolerance and investment levels that are appealing. The topics of product vs. service, storefront vs. home-based businesses and the type of employees. There will be no stone unturned and you will be in a position to make an informed decision.

Why is now a good time to become a franchisee? 

Essential businesses are a priority right now. There are many franchise options that are essential both now and when the cloud of COVID is lifted. Landlords are providing incentives never seen before. Lenders are offering great rates. Franchisors are supporting franchisees more than ever. There will be pent-up demand for goods and services once the worst is behind us.

What kind of experience do I need?

The majority of franchisors do not want you to have any experience in the business they are in. They would rather train you on their systems and processes instead of having to break bad habits that may exist. The training they provide is designed to get you up to speed in a meaningful way so that you can hit the ground running. The ongoing training and field support will enable you to continue to grow your business with confidence.

How long does it take to be open for business?

The investigation process takes 3-6 weeks. Once you make the decision to move forward, the time it takes to open your franchise will vary based on the type of model you choose. If there is real estate/storefront involved, it will take up to 6-months to open. This is because the site selection, lease negotiations, design and build-out can take time to manage. If you choose a service-based business, you can open after your training. Most service-based businesses can be open within 2-3 months and some even faster.

How much money can I make?

The amount you can potentially make as a franchise owner is revealed during your investigation when speaking with existing franchisees during validation calls. Some of the questions you ask will be, “What was your expectation for annual revenue?” – “How long did it take you to realize those expectations?” – “How long were you in business before you reached breakeven?” – “What was you rannual net profit?” – and more. After you have completed a thorough investigation, you will achieve a clear understanding of financial projections in order to make a well-informed and decision.

What is the total investment required to buy a franchise?

The total investment varies by franchise but typically includes the initial franchise fee, equipment, inventory, and working capital. Reviewing the Franchise Disclosure Document (FDD) is crucial to understand all costs and avoid any hidden fees.

What is the success rate of franchisees in this system?

Success rates differ among franchises; it’s important to research and compare specific franchise performance data. Consulting with a franchise consultant can provide insights into the advantages and disadvantages of franchising.

What is the earning potential of this franchise?

Earnings can vary widely based on location, management, and market conditions. Reviewing Item 19 in the FDD can provide accurate franchising information about potential returns on investment.

What is included in the franchise fee?

The franchise fee usually covers the right to use the brand, initial training, and ongoing support. Understanding what the franchise fee covers helps in planning your finances.

What are the ongoing royalty fees?

Ongoing royalties are typically a percentage of gross sales or a fixed monthly fee paid to the franchisor. These fees are essential to consider when evaluating the advantages and disadvantages of franchising.

How long is the franchise agreement term?

Franchise agreements often range from 5 to 20 years, depending on the franchise. Knowing the terms of the franchise agreement is crucial for long-term planning.

Can I renew the franchise agreement? If so, under what conditions?

Many franchises allow renewal, usually requiring adherence to current terms and payment of a renewal fee. Renewal conditions are outlined in the franchise disclosure document.

What type of training and support does the franchisor provide?

Franchisors typically offer initial training and ongoing support in areas like operations, marketing, and management. This support can be a significant advantage of franchising.

What marketing support does the franchisor offer?

Support may include national advertising campaigns, promotional materials, and guidance for local marketing efforts. Effective marketing support can help recession-proof your franchise.

What are the franchisor’s expectations for franchisees?

Franchisees are expected to follow the established systems, maintain brand standards, and meet performance metrics. This adherence helps avoid the disadvantages of franchising to the franchisor.

How is the franchise territory defined?

Territories can be exclusive or non-exclusive, defined by geographic boundaries or population density. Understanding territorial exclusivity is important for market strategy.

Can I own multiple franchise units?

Many franchisors encourage multi-unit franchising, sometimes offering incentives for expansion. Owning multiple units can increase your return on investment.

What are the key performance indicators (KPIs) for this franchise?

KPIs may include sales targets, customer satisfaction scores, and operational efficiency metrics. Tracking KPIs is essential for both the franchisee and franchisor.

What is the franchisor’s financial health?

Reviewing the franchisor’s financial statements in the FDD can provide insight into their stability. This helps avoid potential risks associated with the franchise.

How does the franchisor protect the brand?

Through consistent quality control, trademark enforcement, and strict operational guidelines, the franchisor protects the brand’s integrity.

Are there any restrictions on sourcing products or services?

Often, franchisors require purchasing from approved suppliers to ensure quality and consistency. This could be seen as a disadvantage of franchising to the franchisee due to reduced autonomy.

What is the average time to break even for franchisees?

Break-even times vary but can range from several months to a few years, depending on various factors. Knowing this helps in financial planning and assessing the return on investment franchise.

Can I speak with existing franchisees about their experiences?

Yes, it’s recommended to contact current franchisees for firsthand insights. Speaking to other franchise owners can provide valuable information about the advantages and disadvantages of franchises.

What are the biggest challenges faced by franchisees?

Common challenges include market competition, staffing, and adhering to franchisor policies. Being aware of these can help you prepare and mitigate the disadvantages of franchising.

How does the franchisor adapt to market changes?

Proactive franchisors invest in research and development to stay ahead of industry trends. This innovation franchise approach can be a significant advantage.

How does the franchisor understand the level of competition in the market?

Through market research, competitive analysis, and feedback from franchisees. This helps both the franchisor and franchisee strategize effectively.

What is the process for selling or transferring the franchise?

Typically, you must get approval from the franchisor and follow their transfer procedures outlined in the agreement, which may include a franchise transfer fee.

How is the franchisee’s performance evaluated?

Performance is usually assessed using KPIs, financial reports, and compliance with operational standards. Regular evaluations help maintain the franchise’s brand standards.

What happens if I want to exit the franchise agreement early?

Exiting early may involve penalties or financial obligations; the specific terms are in the franchise agreement. Early exit is often considered a disadvantage of franchising to the franchisee.

How does the franchisor handle underperforming franchisees?

They may offer additional support, require corrective action, or, in some cases, terminate the agreement. Understanding this can help you avoid the disadvantages of franchisor policies.

What is the level of autonomy I will have as a franchisee?

While you’ll manage day-to-day operations, you’ll need to adhere to the franchisor’s systems and standards. This balance is a key characteristic of franchising.

How does the franchisor support franchisees during economic downturns?

Support can include adjusted fees, enhanced marketing efforts, or operational guidance, helping to recession-proof your franchise.