| Here are 11 commonly asked questions that are asked | | | | Can I operate my business from my home? |
| by potential franchise candidates. Note that there are | | | | Sometimes yes. However most franchise opportunities |
| no standard answers for any question. Answers can | | | | require a business location. Many are retail related. |
| vary dramatically from one franchisor to another. | | | | How long does it take to open? |
| Please use this as a basic guide. | | | | Expect the entire process to take anywhere from 60 |
| How much capital do I need? | | | | to 180 days. |
| While the franchisor will give you guidelines, many | | | | What type of training and support do you provide? |
| candidates get hung up on an absolute number that is | | | | Everyone brags about their unsurpassed training and |
| provided by the franchisor. Just remember this: it | | | | support. The truth is, most do an excellent job of |
| usually takes more capital than you would expect to | | | | providing proper training. And if you think about it, it is in |
| start any business. While a franchisor has the | | | | the franchisor's best interest to provide ongoing |
| knowledge of many others who have gone before | | | | support. If you prosper, then they will prosper through |
| you, please do not underestimate the number. | | | | the collection of royalty payments from you. After all, |
| Do I need to have a good credit score? | | | | they have their reputation and name on the line. |
| Probably yes. Even though you may be able to | | | | What is a "Discovery Day"? |
| convince the franchisor that you have sufficient capital, | | | | A Discovery Day is a day devoted to you at the |
| experience, and knowledge to start the business, there | | | | franchisor's headquarters. You will spend time with key |
| will be other related business dealings that will require a | | | | managers and trainers, learning about systems and |
| good credit standing. Think about trying to open a bank | | | | how the franchisor will help you succeed in your |
| account, trying to borrow money, signing a property | | | | business. |
| lease, etc. | | | | Will I have a protected territory? |
| Do I need experience in running my own business? | | | | Almost definitely, that is one of the big selling points for |
| It varies. Many very basic opportunities require no prior | | | | any franchisor. |
| experience whatsoever. In fact, that can become a | | | | Will I have to pay ongoing royalty fees? |
| major advertising pitch for many. Others may require a | | | | Absolutely, this is the primary reason that any |
| great deal of experience and business savvy. | | | | franchisor would want to franchise their opportunity in |
| Do I need knowledge of my desired industry? | | | | the first place. |
| Reference above, once again, this really can vary. | | | | Note that many low cost opportunities are not really |
| Do I need to use a Franchise Broker? | | | | franchises, but they are considered Business |
| Absolutely not, franchise brokers can add value | | | | Opportunities (BizOps). BizOps are very unregulated |
| however. They can help screen potential franchise | | | | and usually have a very small entry cost. There are no |
| candidates. They can also coach you on the proper | | | | ongoing royalty fees with a BizOp. Many are home |
| do's and don'ts during the application and approval | | | | based. However, be careful when choosing a BizOp. |
| process. Just keep in mind that franchise brokers may | | | | Make sure that the opportunity is tried and proven. |
| only represent a select few franchisors. Online web | | | | There are exceptions of course. Many larger |
| portals, such as The Business Market, can provide an | | | | companies offer BizOps. One example is Sign Biz, Inc. |
| easy way to search for existing franchise | | | | They have been around since 1989 and have over 170 |
| opportunities. They will likely have a very large number | | | | existing locations. |
| of listings relative to what a broker will represent. | | | | |