by Larry Reed | Sep 15, 2023 | Franchising
Many franchise owners will choose to work with a partner to operate their franchise. It’s common for franchise owners to partner with people they know, be it a spouse, sibling or a long-time friend.
In this blog, I will explore the upsides to working with friends or family members, how you both can use your skills to find success and how to keep your working and personal relationships with your business partner healthy!
The Pros of Working With Friends or Family
One of the upsides to partnering with a friend or family member is the familiarity that you have with one another. So much of the success behind a franchise is based on communication, and if you are working with someone you are related to or someone you have been friends with for decades, then communication will not be a problem!
On top of that, the two of you likely share similar values. This can reduce the amount of head-butting as you will more than likely agree on how you want your business to operate, and what you want it to stand for.
How You Can Work Well Together
To avoid any arguments or feuds, you and your partner should define the duties and responsibilities that each of you will have. Each of you brings different strengths to the franchise and your partnership, and it’s up to you to figure out how to use them to grow your franchise.
You should also consider creating a detailed business plan to follow. This will help keep both of you on track with your goals and responsibilities.
The Cons of Working With Friends or Family
One of the first things that needs to be done when working with a friend or family member is the setting of boundaries. You should make it clear that your personal relationship takes a pause when work starts for the day, and your working relationship ends when you are done for the day.
Any problems at work should stay at work, and any grievances in your personal life should remain there.
Finances are another area where there may be problems. If you or your partner feels as though you are contributing more time and money to the business than the other, this could cause disagreements. In this situation, it is important to communicate to your partner how you feel.
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.
by Larry Reed | Sep 1, 2023 | Uncategorized
Starting your franchising career is an exciting time. It’s something that you have worked hard for, and now the opportunity is upon you! And while there are no secrets to finding success in franchising, there are some helpful tips that can make the process much easier for you. One of those is being comfortable asking a franchisor questions, especially as you begin your career.
In this blog, you’ll find the types of questions to ask your franchisor regarding investments and finances, the type of support you will receive as a franchisee and your franchisor’s history.
Questions About Finances
One of the more important aspects of owning a franchise is understanding how finances work in the franchising world. You will want to make sure that you are on top of everything so that there are no surprises. When speaking with your franchisor, you should make sure that you speak about franchising fees, royalties and return on investment.
It would help if you even asked about any other operating costs and the financial outlook for your franchise’s industry. Knowing this information can help you make better decisions for your franchise.
Questions About Support
As a new franchisee, you must have support as you start your career. Even if you are business-savvy, having help from your franchisor can be a massive boost. You should ask your franchisor about the types of training available, whether there are mentoring opportunities with seasoned franchisees and what help you’ll receive in marketing your franchise.
All of these factors are important to your success as a franchisee. You may be surprised to learn that some franchisors offer ongoing support.
Questions About Your Franchisor
During your career as a franchise owner, you will build several relationships, but none will be as important as the one you have built with your franchisor. They can help you with so much during your time as a franchise owner, so before you make any permanent decisions regarding a franchise, you must make sure that you know who your franchisor is. You should ask questions related to their history in franchising, their achievements and their credibility.
You will want to make sure that their visions and goals align with your own so both of you are on the same page when it comes to your franchise’s success!
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.
by Larry Reed | Aug 15, 2023 | Franchising
As a franchisee, you won’t form too many relationships as meaningful as the one with your franchisor. Your franchisor can help you understand all the different aspects of franchising as you begin your career. But like any relationship, the one between you and your franchisor needs to be nurtured to benefit both of you.
In this blog, we will discuss how communication, enthusiasm and teamwork can help to build a fruitful relationship between you and your franchisor.
Communicating Effectively
When it comes to any relationship, communication is one of the most important factors. When two people can openly communicate with one another, it helps build trust. For franchisees and franchisors, there are plenty of reasons why open communication is important.
If you as the franchisee have questions or concerns or want feedback about your performance, you should feel safe in asking your franchisor. The same goes for franchisors being able to speak with you about these things without worrying about your reaction.
Being Enthusiastic About Your Work
As a franchisee, showing enthusiasm for your work can have a positive effect on your franchise and help you to stick out to your franchisor. When a franchisor sees this enthusiasm, he or she will see that you not only enjoy what you do but that you take it seriously. This is important as it can help to build a strong connection between the two of you.
While the enthusiasm may come from you, the franchisor plays a role in fostering that enthusiasm. The training, support and constant communication he or she offers can help a franchisee continue to feel motivated about work!
Working as a Team
It is important to remember that while your titles may differ, you and your franchisor share the same goal of building a strong franchise to continue the brand’s growth. As a franchisee, you have insight into what happens daily in your franchise that may be helpful for your franchisor, and your franchisor has the experience of handling various situations that may help you!
Coming together as a team to implement marketing strategies, focusing on continued growth and how to stay true to the brand’s visions, takes work from the both of you. By working side-by-side, communicating and trusting one another, you can find success for your franchise.
Are you ready to start your franchising journey? Get in touch to learn how I can help.
by Larry Reed | Aug 1, 2023 | Uncategorized
Owning a franchise is a fantastic way for an entrepreneur to get a start in business ownership. Franchising allows you to work with a brand that has built its name already and has shown that it has a working and profitable system.
Franchisees are required to pay fees before they can take control of their franchise. This blog will discuss those fees and why they are important.
Franchise Fees
The first fee you will need to pay, and one of the most important, is the franchise fee. This fee allows a franchisee to become part of a franchise system. Franchise fees are one-time payments that range in price. Depending on how big the franchise brand is—and what the franchise fee covers—determines how much you will need to pay.
As a result of paying the franchise fee, you can now take advantage of the franchise’s brand name and trademarks. From there, you can then go and find an audience of your own to help your franchise grow.
Royalty Fees
Royalty fees are also important in franchising. The difference between these fees and franchise fees is that royalty fees are paid regularly. You and your franchisor can discuss how often these fees will be paid. Most will decide to make the payments either monthly or quarterly. While franchise fees focus on getting the ball rolling, royalty fees are there to keep the ball rolling.
A franchisee’s royalty fees allow for continued support from the franchise brand. This could include ongoing training, other needed services and marketing. The percentage that you will be responsible for paying will come from your gross sales and can differ from franchise to franchise. Royalty fees are also how most franchisors make their money.
Advertising Fees
Owning and operating a franchise takes a lot of work out of franchisees but also franchisors. In most instances, franchisors will be in control of any advertising that happens. This could be via social media, commercials and any other form of advertising available. These services are not cheap. This is where advertising fees for franchisees come into play.
Much like royalty fees, advertising fees are often paid regularly. These fees can help your franchisor afford national and local advertising, which will help build brand awareness and attract more customers!
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.
by Larry Reed | Jul 15, 2023 | Uncategorized
One of the many roadblocks that can keep a prospective franchisee from owning a franchise is the amount of money it costs. Without proper funding, a franchisee won’t be able to pay the fees and costs of owning a franchise or purchase the necessary materials and equipment to get started.
Luckily, there are ways for franchisees to gain funding to help afford the franchise that they are interested in. One of those options is receiving financing from your franchisor. It’s important to know that not every franchise will offer this option, but some do.
This blog will explore why franchisor financing is a win-win for franchisees and franchisors, financing amounts and the requirements needed to qualify for financing.
A Win-Win Situation
Receiving funding from your franchisor is a win-win for everyone involved. You as the franchisee will receive the funding necessary to start your business, and the franchisor and franchise will be able to continue to grow with new locations.
A major benefit of going to your franchisor for financing is that they are already familiar with the franchise. They know how much things cost and can help make your job easier as they know the ins and outs of the franchise. Not only that, but there is the chance that this will help the relationship between franchisee and franchisor grow stronger because of their shared goals.
Requirements
When it comes to the requirements for receiving funding from a franchisor, those requirements are often left up to the franchisor to decide. While some franchisors may look for one type of criteria, another franchisor’s requirements could be completely different. There are a few general requirements.
Your credit will be assessed, and you will be asked for a personal investment of some sort and a developed idea for what you plan to do with the money. Franchisors take a lot of risk by providing you with funding. They want to make sure that it is in good hands.
Potential Financing Amounts
Much like the requirements to receive financing from your franchisor, the amount you receive comes down to the franchisor. The amount you are given is determined by the size of the franchise, your financial background and your desired amount.
Ready to start your franchising adventure? Get in touch today to learn how I can help you!
