If you’ve ever wondered how to start a franchise, where to find franchisees, how the franchisor/ franchisee relationship should work, or what to ask before purchasing a franchise, you’ve come to the right place.
FAQ
Working With Us
How much money do I need to have to invest in a franchise?
The amount of money you need varies based on the type of franchise you’re looking to buy into.
There are thousands of franchises at all investment levels with brick and mortar locations costing much more that service-based franchise opportunities.
At a minimum, you will need to have at least $50,000 in liquid capital and a net worth (what you own minus what you owe) of at least $100,000 with a few exceptions. There are low cost franchises available for under $100,000 as well.
Depending on what you’re looking into, your franchise consultat can help you understand the financial requirements of specific brands and industry segments.
This will not affect your credit score
What if I already know what franchise I want? Can you still help me?
Yes, of course. We are here to educate and support you in the franchise buying process.
If you find a franchise that you like, then by all means, let’s investigate it.
We may also share with you some intelligent options that may share similar characteristics yet seem to be more in alignment with criteria we’ve determined is important to you.
It’s smart to shop around because you will learn a little bit more with every discussion, and every discussion will bring you closer to what you really want.
Am I under any obligation to invest in a franchise if I work with you?
Absolutely not.
We serve at your pleasure. You can discontinue working with us ant any time and for any reason. We do not sign any binding agreement together.
Why will franchise companies pay your consultant fees?
Franchise Companies receive hundreds of inquiries every month from people seeking franchise information.
It is an enormous task and requires a large staff to call and screen all these people to find the 1% who are serious, interested, financially qualified, and ready to get started.
Franchisors have found it more sensible and less expensive to pay consulting fees to franchise consultants than to support massive advertising and staffing fees for franchisee recruitment.
Professional franchise consultants are able to handle these functions and deliver qualified candidates to franchisors that are pre-vetted.
Do I have to be ready to invest in a franchise right now?
No, not at all.
Working with us is all about you getting educated and understanding the options in franchising that may make sense for you.
If our process of investigations takes one month or two years, it has no bearing on our interest in serving you.
Our goal is to make sure that we make a decision that you will not only be excited about but thrilled about for years to come because it enables you the lifestyle you deserve and the opportunity to achieve your long-term goals.
Can I continue to look for and inquire about franchises on my own while i work with you?
Absolutely! You might want to let us know of franchises you find interesting so we can research them for you.
Why should I use a franchise consultant to help?
Why wouldn’t you want an experienced franchising veteran on your side to help you with a process that isn’t easy?
We are here to not only educate you, but also to help you understand which franchise opportunities will be the best fit for you — not just those that you may be able to afford, but those that you can have a passion for and enjoy building.
Most importantly, we need to find you a business that can support your income goals and help you build your wealth.
There is no cost to work with us. We are compensated by the franchisor if and when you open your doors on your new business.
When you work with us we can help you save time, money, and avoid potentially costly mistakes during the process.
What if I have a question that isn't in your frequently asked questions?
That happens often.
We welcome you to complete our contact form at the bottom of the page and put the question in the message field.
We will get back to you as soon as possible.
FAQ
Get Started with Franchising
Why Should I Own My Own Franchise?
Business ownership offers you the opportunity to take control of your career, finances, schedule and future.
You will be your own boss, work hard for yourself, and potentially reap the rewards that business ownership can offer.
Why Should I Buy a Franchise?
Regardless of whether you have industry or business ownership experience, you can purchase most franchises because they offer complete training, comprehensive support from the home office, a proven business system, and a product or service that has proven itself to be popular and in-demand.
How Much Does A Franchise Cost?
The cost to buy a franchise varies greatly depending on what industry you choose to start the business in, whether the concept requires a storefront, office, home office, or is mobile, what state you buy the business in, and how much overhead your business will require.
There are concepts that cost under $10,000 to start and other franchise businesses that require the investor to have millions of dollars in available liquid capital.
Additionally, many franchise concepts offer financing or can help you gain financing if you’re interested.
We also provide a FREE cost of capital analysis for you.
How Can I Receive a FDD from a Franchise Company?
Once we have narrowed down your selections to one or two, we will introduce you directly to the CEO’s or development teams. You then will then be contacted by the company.
If you are seriously interested in potentially purchasing the concept, they will most likely offer you a copy of their FDD (Franchise Disclosure Document) for review before you make a final decision.
It is beneficial to utilize a Franchise Attorney for further analysis.
Can you get wealthy by owning franchises?
The simple answer is yes, you can get wealthy by being a franchise owner.
However, like any type of business, you get what you put into it. Owning a franchise does not guarantee wealth. But when you pursue the right franchise and diversify your investment portfolio, you’re in a good position to significantly increase your income.
Is a franchise business profitable?
Buying a franchise business can be extremely profitable. That said, when choosing a franchise opportunity, you’ll want to consider the things that make any business profitable.
Things like overhead, startup costs, franchise fees, and ongoing training and support can eat into your profits and affect your success.
What are some tips for starting a franchise?
If you’re considering a franchise, your first step is to make sure you have what it takes to run a business.
You’ll also need enough capital to purchase the franchise and give yourself a cushion while ramping up.
Talk with other franchisees to learn more about the opportunities you’re exploring. Most importantly, be willing to work hard.
Will franchising die out as a business model?
Quite the contrary, since franchising can be a lucrative opportunity both to the franchisee and the franchisor.
However, recent years have shown there’s no room in the industry for mediocre franchising, which is why there seems to be fewer opportunities.
The good news is that this has led to franchisors doubling down on setting up their franchisees for success.
Are franchises considered small businesses?
Franchises are very much like small businesses, but with the backing of regionally or nationally recognized brands.
This model tends to have a higher level of success than a typical small business, and you get all the benefits of having your own business, hiring a staff, and setting your own schedule.
What are the pros and cons of franchising?
A huge advantage of franchising is that you get a turnkey business with very little guesswork in setup.
You also have a strong system of support helping to guide the way to success.
On the downside, you don’t have total control over how the business is operated. It can also require a significant upfront investment to get started.
How quickly can I open a franchise?
Once you purchase a franchise, you can expect to open anywhere from 2-6 months.
Most of the work is already done for you in terms of designing a store, sourcing equipment, and creating marketing materials.
Your franchisor should be able to provide a more accurate timeline.
Can I open a part-time franchise?
Part-time franchising can work in certain conditions. This is a great option if you’re looking for a side hustle without giving up your current job.
Most franchises don’t require you to be open a certain number of hours or days to qualify.
We have several Passive/Investor Models available that require as low as 2 hours a month time investment allowing you to keep your current job.
What businesses are best for a recession?
Recession-proof businesses are the ones that offer a service people need, no matter the state of the economy.
Food and groceries, retail consignment, accounting services, in-home senior care, technology and IT, and childcare can all fall into this category.
Keep in mind that recessions are just one of many threats that can impact a business’s ongoing success.
Many can also thrive.
How Do I Choose The Right Franchise?
Deciding which franchise is right for you is a huge decision. The right business should not only interest you, but the initial investment amount must fit into your budget and it should enable you to live the lifestyle you desire (do you want more free time, more money, control over your work environment?).
Additionally, any business you choose to buy must meet a market demand in your community. If there is no market demand or the area is already saturated with similar businesses, your new business will not have a bright, long future ahead of it.
We will investigate and present you with the best opportunities in your area that match your criteria.
During the validation process, you will be able to speak with current and past franchise owners and learn about their experience with the franchise system and the support staff to validate any and all claims.
Can I Have A Business Partner?
This varies depending on the preferences of the franchisor but yes, most concepts will allow you to have a financial partner who may also be an operating partner, if you choose.
Can I Own More Than One Franchise?
Yes, but again, this can vary by franchise concept. \
Many franchisors will sell area or master franchises within a certain specified territory. These larger territories can be costly. If you own a single franchise and are successful, most franchisors will be pleased to sell you another territory.
If you own one concept and would like to purchase another franchise from a different, unrelated brand, this is usually possible unless you plan to buy a competing concept.
Make sure to read the entire franchise agreement and also have an attorney who specializes in franchise law look over the agreement before you sign it. Let your attorney know that you plan to purchase another franchise concept in the future, so he can ensure you won’t have problems.
We will introduce you to a Franchise Attorney before any agreements are signed.
What are the best franchise opportunities?
There’s a lot that goes into determining the “best” franchise opportunities. Startup costs, ongoing overhead, franchise fees, support, brand strength, and financial stability can all play a role.
Fast food service usually ranks high (think McDonald’s, Dunkin Donuts, etc.), as well as service-based businesses like The UPS Store, Pearlevision, and Great Clips.
There are a lot of great franchises that you can get into for less than $100K.
What is it like to own a franchise?
Owning a franchise is like having the best of both worlds: you are essentially a business owner, can run things the way you want, and gain financial freedom.
You also have the backing of a strong brand. Your franchise company has taken away all the guesswork in starting a business and does a lot of the heavy lifting for you.
What must be considered when buying an existing business?
When buying an existing business, you’ll need to review the following: existing debt portfolio, location, P&L statement, equipment, staff, established customer base, the industry, and existing or potential competition.
All of these factors will determine your viability to succeed.
We have dozens of resale opportunities that become available on a regular basis. We always explore these first in our investigation process.
What kinds of franchises are there?
Franchises can fall into one of three categories:
A management franchise is where the franchisee manages the business, but not necessarily the day to day operations.
A product distribution franchise is where the franchisor provides the product and the franchisee sells it (think cars, vending machines, etc).
A business franchise is where you get the rights to use a trademarked name and all the business tools and processes to sell a product (the most common type of franchise).
Is franchising right for you?
Franchising can be a great opportunity, but it’s not for everyone.
You might be a good fit if you have some business experience, are self-driven, and can work independently.
You should also be able to carefully weigh risks and recognize good opportunities.
Should I buy a franchise or get a new job?
Ironically, buying a franchise is just like getting a new job – one you create for yourself.
If you have the capital, starting a franchise is an attractive alternative to seeking employment. It gives you more freedom over your career and can increase your earnings potential.
There are several Passive/Investor Models available that require as low as 2 hours a month time investment allowing you to keep your current job.
Do franchises have defined territories?
The majority of franchises follow a defined territory concept. This is helpful if you plan on opening multiple locations as a franchisee, as it helps to protect your area from competition.
How to start a business with a minimum investment?
Starting any type of business requires some upfront investment.
If you don’t have a huge capital reserve, you do have other options: small business loans and grants are available. You can also find investors to fund your venture, or opt for a low cost business idea.
We have a Funding Cordinator on staff that will execute a cost of capital analysis for you free of charge.
Where can you get startup money for a franchise?
Some franchisors will finance the purchase, which is often one of your best options.
You can also look into bank loans, SBA loans, grants, crowdfunding, or good old-fashioned loans from friends and family.
FAQ
Franchising Your Business
Franchising is one of the best ways to grow your business and reach new customers. That said, it isn’t easy, and it requires a viable strategy if you’re going to succeed. If you’re considering branching out into franchising but want more information, review these franchising FAQs to get a better idea of what franchising requires.
If you decide to proceed, trust Franchise Nav to help you succeed.
How to franchise a business?
If you’re interested in turning your existing business into a franchise, consider if your business is suitable for franchise.
Does it have a track record of success?
Do you have repeatable systems that franchisees can slide into place?
Do you have the means to offer support, training, and help with marketing?
From there, it’s a matter of learning the legal requirements and establishing your franchise model.
We have a comprehensive program to create your franchise, market and scale it, all the way to exit.
What Is Franchise Development?
Franchise development is the phrase used to describe the general preparation of a business for expansion via franchising.
This process includes strategic business planning, completion of legal documents, writing of operation manuals, marketing campaigns to find franchise candidates and the sales of new franchises.
Is Franchising a Business a Viable Business Strategy?
Franchising allows you to expand your business concept by using other people’s capital and effort.
Because you are able to gain revenue from a location operated by a vested owner-operator, they run the location much more efficiently and profitably than an employee would, thus maximizing your income.
What is the Importance of a Franchise Operations Manual?
A franchise operations manual is the “standard operating procedure” on corporate standards, systems, and protocol.
It is an essential resource for franchisees on best practices.
The operations manual should include information on safety standards, reporting requirements, inventory tracking, financial record keeping, and other essential functions of the business.
Can I Avoid Franchise Laws?
Franchise laws are in place for the protection of franchisors and franchisees alike.
If you choose to expand your business using a franchise model, then no, you cannot reasonably expect to avoid the regulations that govern such an establishment.
What Is a Franchise?
A franchise is a branch location, opened by a Franchisee that uses the trademark, name, and business model of a franchisor business.
The Franchisee typically pays the franchisor a one-time franchise fee for the right to conduct business using these properties and benefits from the training, support, and name recognition that the Franchisor offers.
Then the Franchisee pays the Franchisor a monthly fee (usually a percentage of total sales) for the ongoing right to run the business and receive the Franchisor’s support.
How Do I Turn My Business Into a Franchise?
Turning your business into a franchise first requires an assessment of its feasibility.
If you determine that your business is scalable and a franchise plan is feasible, you can develop a franchise program by consulting with an experienced franchise specialist such as Franchise Nav.
How Do I Choose a Franchise Consultant?
Choosing a franchise consultant is an important decision, and you should build a partnership with a consultant that has a track record of success.
Franchise Nav specializes in helping small businesses grow via franchising.
What Do the Franchise Laws Require?
Franchises are governed by Rule 436 from the Federal Trade Commission.
This rule mandates that prospective franchise buyers be given a Franchise Disclosure Document (FDD).
The disclosure document typically must also be filed with a state agency.
What Happens If I Sell a Franchise Without Developing the Necessary Documents?
Selling a franchise without the development of a prescribed disclosure agreement or filing of the necessary legal documents is illegal.
Choosing to operate illegally will likely result in fines or punitive action against any business licenses you may have been issued.
How Do I Know That I Will Be Able to Sell Franchises?
Simply put, you don’t.
Franchising has risks, just like any entrepreneurial project, and you should only franchise your business if you are confident in its scalability and the feasibility of its success.
Successfully launching a franchise requires skill and dedication as well as a successful business model that can be duplicated by a new franchise owner.
Franchise Nav will analyze your business and determine if it can be a viable franchise.
Contact us today for a FREE Consultation
There are no obligations, no costs, no fees… just good, solid information about franchising.
3498 NORTH SAN MARCOS PLACE CHANDLER, AZ 85225
(480)-444-8947
[email protected]
