Learn More About Franchises

A franchise is a business in which the owners are selling the rights to their business, for example; name, logo and model to third party retail outlets through an agreement called a franchise agreement. The franchise in the deal is owned by independent third party operators, also known as franchisees.


It’s uncommon to drive down the road and not see a franchise. They are everywhere and it’s a common business practice with a lot of reach, you can easily do business state by state and internationally when you get yourself established. There are franchise opportunities that come in many different industries.


How You Can Benefit From Franchising Your Business


There are many perks to running a Franchise.


  • You have a greater chance of success when starting a new business even in a competitive market.


  • It’s a low cost way of doing business when you are trying to improve your market share and geographical reach.


  • With national advertising and name recognition you're more likely to succeed. 


  • Franchises have a network of support and you're creating new relationships with prominent people, and other companies.


  • You're creating new jobs and improving the economy.


  • There’s more independence to run a small business and grow it larger.


  • You have the support of a parent company that is already established, with a good reputation, management and work practices


By allowing us to make the introduction, we can save you a considerable amount of money. Most franchises give our clients a substantial discount that you wouldn't get on your own. Please allow us to make the introduction to the franchise.


How To Invest In A Franchise


The potential franchisee must first pay an initial franchise fee to the franchisor. This is for the rights to the business, initial training, and the equipment required by that particular franchise. Once the newly bought franchise is in running order, there is often an ongoing royalty payment, either on a monthly, quarterly, or annual basis paid to the franchisor. The payment plan is typically calculated as a percentage of the franchise operation’s gross sales.


After the franchising agreement contract has been signed, the franchisee will open a replica of the franchise business, under the direction of the franchisor. The franchisee’s who own this replica of the business will not have as much control over the business as he or she would have if it was an individually owned business model from the start.  There is also something to be said about the many benefits of already being in an already established business. McDonald’s is already an established franchise and there are plenty of people who would visit the golden arches if a new one opened in their location. This is one of many franchises, however, there are plenty of solid options away from fast food. 


Read What’s in a franchise agreement? to learn more about these contracts. 


How Much Control Do You Have?

Usually, the franchisor will require that the franchise model stay the same. The franchisor will require the franchisee to use the uniforms, business methods, and signs or logos particular to the franchise. Using McDonald’s again as an example, they must still display the same likeness as every other one in the United States.


 The franchisee should keep in mind that they’re not just buying the right to sell the franchisor’s product. They’re also buying the right to use the successful and tested process used in other profitable franchises. 


The franchisee will usually have to use the same or similar pricing in order to keep it uniform with the other franchises of the same business. If you see a buy-one get-one-free deal on a McDonald’s commercial, you would expect to find this deal at the franchise operation closest to you. You will have to use the business model determined by the franchisor, but the franchisee will otherwise remain an independent owner of the franchise.


Even though there are plenty of advantages, we fully suggest researching thoroughly and determining if a franchise is right for you.  This is an investment you’d be making and like all investments or risks we take, we must consider all odds. If you are determined on buying into a franchise, you should contact an experienced franchise attorney for further assistance. We are only the messenger to introduce you.  For legal advice, you will have to consult them.

This website might be valuable to you in finding an experienced franchise attorney. Please also search yourself, weigh all options and figure out what is best for you.