Franchise Opportunity Frequently Asked Questions

Franchise Opportunity Frequently Asked Questions

In the Franchise Industry the most common questions we get asked by people looking for a​ franchise opportunity are covered in​ this list.

Question: What is​ franchising?

Answer: Franchising is​ where you buy the rights to​ a​ business concept, trademarks & know how. in​ return you pay a​ franchise fee and a​ percentage of​ your profits.

Question: What is​ a​ franchise?

Answer: a​ franchise is, in​ its simplest terms, an​ agreement between the franchisor and the franchisee, whereby the franchisee has the rights to​ use the logos and trademarks of​ the franchisor and the ability to​ market the franchisors products. Both parties commit to​ a​ legal agreement which protects both their interests. The franchisee usually pays an​ initial franchise fee and ongoing royalty payments.

Question: is​ it​ better to​ buy a​ franchise opportunity or​ start my own business?

Answer: Based on the surveys carried out by the US Department of​ Commerce & NatWest/BFA, the majority of​ franchisees are still trading profitably after five years. Everyone knows that the majority of​ people who start out in​ business on their own, I am sad to​ say, end up failing within the first three years. When you buy a​ franchise business, in​ return for a​ franchise fee, you receive training and ongoing support. You also benefit from the knowledge that the franchisor has picked up over many years.

Question: How much does a​ franchise business cost?

Answer: There are no fixed prices for a​ franchise opportunity. Depending on your budget there are franchises to​ suit most people ranging from only a​ few thousand, to​ over a​ million.

Question: What's the first step to​ buying a​ franchiser?

Answer: Do a​ search on the internet for the following: "franchise", "business franchise" & "franchise opportunity". You will find a​ wealth of​ material on the internet. You can also buy magazines that specialise in​ franchises and of​ course, you should attend franchise exhibitions where you can meet the franchisors or​ their agents and ask questions. at​ the exhibitions, in​ some cases you will also be able to​ touch and feel the products that form the cornerstone of​ the franchise!

Question: How do I raise the funds required to​ buy the franchise?

Answer: Most banks have special units set up to​ help potential franchisees. in​ many cases the franchisor has done the hard work for you and arranged special terms with lending institutions!

Question: Which franchise is​ right for me?
Answer: The best franchise for you is​ not necessarily the business that makes the most money! Buy a​ franchise which suits your lifestyle and is​ interesting to​ you. if​ you like the products that you are marketing, then you are much more likely to​ enjoy your work!

Question: Can I sell my business when I want to​ move on?

Answer: if​ your franchise business is​ trading profitably, then you should be able to​ sell it​ like any other business. Your franchise agreement will go into detail the processes that are involved in​ selling the business. Unfortunately, if​ your business is​ not making a​ profit, then it​ will be difficult to​ find a​ buyer.

Finally, always take legal advice before signing any franchise agreement. Your lawyer has to​ ensure that the agreement is​ fair for both parties. Your accountant will help in​ evaluating the profit potential of​ the franchise opportunity.

Franchise Opportunity Frequently Asked Questions

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