by Larry Reed | Dec 1, 2023 | Franchising
Choosing a franchise is an exciting time for an aspiring franchisee. There is so much to learn and take away from this new opportunity that has been presented to you. But before you begin your franchising journey, it can be helpful to speak with franchisees of the franchise you are interested in to get a better idea of how it operates.
This blog will offer up the questions you should ask your fellow franchisees about the franchisor, costs and the daily operation of the franchise.
Questions About the Franchisor
There is no relationship in franchising more valuable than the one between a franchisee and a franchisor. When speaking to your fellow franchisees, you should ask questions that focus on the dynamic between the two. It can be helpful to know how involved the franchisor is in the decision-making process and whether they offer training and support to their franchisees.
It would be best if you also asked about the franchisor’s background. Try to get an idea of their level of experience. These questions can help you understand how the franchisor works and what you should expect if you join that franchise system.
Questions About Costs
You will want to know everything you can about the costs and fees for the franchise you are interested in. When speaking with fellow franchisees, it may be helpful to ask questions about the initial investment for the franchise and how fees are structured.
You should also ask about any hidden fees or unexpected costs that they may have encountered. And while it may be an uncomfortable conversation, you should ask about the return on investment. This is information that can be helpful to you.
Questions About the Day-to-Day Operation
To get a sense of what you will be doing from day to day, you should ask questions about the daily operation of your franchise. You can ask questions about customer relations, managing staff and any common challenges they face. It may be helpful to ask about their daily schedule and how many hours they work.
Don’t hesitate to ask what they like and dislike about owning a franchise. Finding out all you can about the franchise will help you to be more prepared!
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 | Nov 15, 2023 | Uncategorized
Learning the terminology used in the franchising industry is important for franchisees, especially those who are entering the industry for the first time. Understanding what certain terms mean, how they affect you, and the differences and similarities between them can make your job easier.
Not sure where to even begin? This blog will discuss and define some of the common and important terms you should know when it comes to being a franchise owner!
Franchisors & Franchisees
The relationship between a franchisor and a franchisee is one of the most important in the franchising industry. And while the names are similar, the two positions have different responsibilities.
Franchisors, which are often big brands or businesses, allow franchisees to run one of their businesses under its name and business model. The franchisor may also provide a franchisee help with marketing, training and guidance when it comes to business practices.
The franchisee is responsible for taking that assistance to help grow the name and reputation of the brand. This is done by following the brand’s business model and adhering to its guidelines.
Franchise Fees & Royalty Fees
Learning about the different fees a franchisee must pay can be overwhelming. The most common fees you’ll encounter are franchise fees and royalty fees.
A franchise fee is a one-time fee that essentially opens the door for the franchisee. This fee is paid to the franchisor by the franchisee, and it can cover training costs, equipment and the right to use the brand’s name.
Royalty fees are ongoing payments, and the amount that is paid is often determined by a franchisee’s sales. These fees are also paid to the franchisor, either on a monthly or quarterly basis, and they cover the continuous use of branding, marketing and much more.
Franchise Disclosure Document
A Franchise Disclosure Document (FDD) is a legal document that franchisors are required to give potential franchisees. This document provides franchisees with everything they need to know. Among the information covered in the FDD is the franchisor’s history, how much is required for the initial investment and information about fees you’ll need to pay.
It will also cover information about financing arrangements and the franchisor’s financial statements, among other things. The point of this document is to help you make an informed decision when selecting a franchise.
Ready to start your franchising adventure? Get in touch today to learn how I can help you.
by Larry Reed | Nov 1, 2023 | Franchising
Increasing revenue is something that all franchisees want to do. Their franchise may be experiencing financial difficulties, or they are simply interested in growing their franchise. Whatever the reason, there are many methods to increase a franchise’s revenue.
This blog will discuss how upgrading your customer experience, integrating different and newer payment methods and strengthening your marketing strategy can bring in more revenue for your franchise!
Customer Experience
The customer experience is vital to a franchise’s longevity, reputation and revenue. Without a strong customer experience, you risk giving yourself a bad reputation and scaring away loyal and potential customers. But changing your customer experience is easier than you may think.
Your staff plays an essential role in the customer experience. Training your team to be more attentive when caring for customers will help create a more pleasant experience.
Likewise, a seamless online experience for customers can also help to bolster your reputation and lead to more customers visiting your site. Creating a space for feedback can help you address customers’ concerns and show that you value their input.
Additional Payment Methods
Another way to increase your franchise’s revenue is to offer multiple payment methods. Today’s customers want transactions to be quick, and they expect to be able to pay through mobile wallets and other electronic methods.
The more payment methods you offer, the more potential customers you are opening your business up to.
Technology can be overwhelming, but you will benefit from embracing it. If customers know that there won’t be a hassle when it comes to paying, then they are more likely to visit your business. They may even spread the word about how easy it is to pay for your services!
Marketing Strategy
A successful marketing strategy can make all the difference for a franchise. It can help you reach new customers and maintain relationships with those you already have.
With the growth of social media and email marketing, creating engaging content for your audience has become easier. You can keep your customers up to date about sales, changes in your store and new products.
In addition to those options, you can engage in community events to spread the word about your franchise! Hosting a booth at an event allows you to meet potential customers face to face.
If you are ready to begin your career as a franchisee, get in touch today to get started with a free consultation.
by Larry Reed | Oct 15, 2023 | Uncategorized
Owning a franchise comes with challenges, and there is one you will need to figure out before putting pen to paper. How you’ll afford your franchise is something you need to take into consideration when choosing the franchise you want to own. Obtaining financing help is common in franchising.
This blog will discuss the common financing options available to franchise owners: SBA loans, franchisor financing and bank loans.
SBA Loans
Small Business Administration (SBA) loans are one of the most popular forms of financing for franchisees. To provide these loans to franchisees, the SBA works with different lenders to fund the loans.
You will need a detailed business plan and to have your credit history assessed before obtaining one of these loans. Part of what makes these loans so popular is that the SBA guarantees a portion of the loan, which means that lenders are taking fewer risks and are more willing to offer loans of varying amounts with longer repayment times and lower interest rates.
SBA 7(A) is the most popular type of loan and allows you to take up to $5 million. The CDC/504 loan allows up to $5.5 million dollars and is often used for equipment and real estate. The smallest loan is the SBA Microloan, which allows borrowers to take up to $50,000.
Franchisor Financing
Another form of financial assistance is financing through your franchisor. This can come in the form of help with the franchise fee or help with purchasing any of the necessities needed to operate your franchise.
It is important to know that each franchisor will have individualized financing terms. This includes the amount offered and repayment times. The success of your franchise is important to your franchisor, so they will be more than happy to help you with getting started!
Bank Loans
One of the most common types of loan is a bank loan. These loans are given to small business owners to help them fund their goals. Similar to other types of loans, to secure a bank loan you will need a detailed business plan and to have your credit history assessed.
When taking a loan from a bank, remember that each bank offers its own repayment terms and interest rates.
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 | Oct 1, 2023 | Uncategorized
Purchasing a franchise is a life-changing decision for a franchise owner. But before going out and purchasing a franchise, some factors need to be taken into consideration to help you pick the franchise that is the right fit.
This blog will discuss how your business goals, financial readiness and other franchisees play a role in helping you select a franchise. It will also discuss how the different franchising industries can impact your decision-making process.
Goals
When considering purchasing a franchise, one of the first things you should do is figure out your business goals. You will want to match yourself with a franchise that has similar goals to your own.
These goals could be as simple as making a certain amount of revenue in your first year or as complex as expanding to multiple units over the next five years. When speaking with franchisors, do not be afraid to ask questions about their goals. It will help you determine how focused they are on the brand’s growth and success.
Finances
Maybe the most important aspect to consider is your financial readiness. You need to think about what it takes to own a franchise. That includes the initial investment, ongoing fees, and any equipment and operational costs that need to be covered.
You will want to align with a franchise that is within your budget range to avoid financial problems. Should you need it, many franchises offer help with funding to get your franchise started.
Franchisees
If you have narrowed down your list of possible franchises, try to connect with franchisees of those brands to learn about how they operate, the experiences they’ve had with their franchisors and their brand’s track record over the last few years.
This can be helpful information that can inform your final decision. These experienced franchisees will be more than happy to help you!
Industries
Another thing to consider when purchasing a franchise is the industry you would like to work in. You should pick an industry that you have an interest in or one that you may have previous experience in. This will make franchising much more enjoyable for you.
Whether it’s working in the home repair industry or working in the fitness and health industry, there is no shortage of franchises to choose from. Take your time finding the one that is best for you!
If you are ready to start your career as a franchisee, get in touch today to get started with a free consultation.
