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Working from Home With some franchises you’ll be able to work from home. This can save money in real estate and building costs and instead just go to constructing or designing a home office—but these franchises can be very specific and are often much smaller operations as opposed to opening your own McDonald’s location. Some […]

While all parts of the FDD are important to not only read, but to understand, you’ll want to pay particular attention to these sections:   Item 7: Because it talks about how much the business will cost and the initial investment, it should be 100% understood, especially that these costs are only estimates and not […]

In short, the information you’ll find in the FDD includes:     A directory of franchisees in the system Audited financial statements Company’s key staff and their qualifications Company-owned locations, how many are open, how many have closed Franchisor’s financial history, including any bankruptcies or litigations Information on system-wide growth Information on the franchise Legal […]

You should feel some security in knowing the law requires franchisors to inform franchisees about the systems they run in their companies. The information that the law requires franchisors to share should be found in the FDD and if it’s not, back away from the company because they are not in compliance with the law. […]

During the meetings with your franchisor, you will hear them make promises and you are likely to verbally agree to things. You’ll also read the FDD and the franchising agreement and will have to sign parts of both. All these experiences culminate into the end result of owning a franchise, but later down the line, […]

The Cover Pages of the FDD Every formal document will always start out with a cover page. On this (these) page(s) you should look forward to this information:   Summary of the franchise’s offerings and initial investment required. State that no government agency has verified the information in the document. Remind the franchisee to read […]

There’s a lot of debate on what to do if an FDD doesn’t present franchisees with the financial performance representation or if they do and it’s something small. If the franchisor you’re working with doesn’t provide you with any information on it, another good source to go to is the earning potential information for the […]

When you’re getting into franchising, you should know the term Franchise Disclosure Document (FDD) indefinitely. You should always receive an FDD when you sign up with a franchisor for information and you need to make sure that you understand the FDD because it holds all the important information you will need to know about the […]

Once you have gone through the traditional methods of financing the next thing you will want to consider is going with an angel investor. An angel investor is a person or group of people that offer funds for the startup of your business and in turn they have a direct role with your business.   […]

If you are trying to get a better understanding of how much it will cost to set up your franchise, then there are several aspects that will come into play. This is why it is helpful to understand what you may encounter. Keep in mind that there may be other fees and costs that you […]

Many franchisors have programs to make number crunching easier on you. This can include point of sale programs for the front of the house and accounting and payroll programs for the back of the house. While these can be very helpful, your investors and lenders will still want to see the projected income and cash […]

A business plan is essential for the success of your franchise. No matter what route you are taking for borrowing money or simply getting through the approval process for your franchise, you will need to have this information.   The First Step to a Franchise Financial Plan When creating your business plan, make sure you […]

The key to success in anything is training and preparation. This is particularly true in franchising. All franchise training will not be the same from franchisor to franchisor. There is more than one way to train properly and there are different needs in different industries. That doesn’t mean that there isn’t bad training. It’s important […]

Franchise brokers can be essential to franchising as they are individuals or companies that will offer to help find the right franchise for you. Some will even assist you as you create a business profile that reflects who you are, your background, interests, lifestyle, and expectations. They will also assist in describing your financial qualifications. […]

Choosing the right franchise is a daunting task. This will set up your finances and your job for what could be the rest of your life. It’s a huge investment of time, money, and resources, so making sure you have enough information to make an informed decision is key.   One of the best ways […]

So you’ve decided that you want to be a franchisee. You’ve realized the benefits that come with a solid franchise company such as a system that removes any guesswork for running a business and also giving you the tools you need to avoid the common mistakes and kinks that business owners experience when doing an […]

There are many small details that will make one franchise, even within the same industry. This can include things like purchasing an older franchise or buying a completely new store. This will be something you ask your franchisor and you evaluate, but here’s a place to start.   Working With a Pre-Existing Franchise Location There […]

It’s important to visit as many franchise headquarters as you can as you investigate which one is for you. This can get expensive quickly, but it is essential in discovering how well a franchisor can take care of you through the visual of how well he takes care of his home space. Consider the risks […]

While all the books, blogs, and articles in the world can tell you what to expect, what business franchisors will give you as a business franchisee, only you will be able to make the decision for yourself. It’s a personal decision based on personal questions and self-evaluation. While you might face obstacles based on your […]

Not everyone is cut out to run a franchise. Those with more passive business aspirations are some of the few that would not do so well running their own business, but there is more to it than that. It’s always important to make a self-assessment before you make any large purchases, investments, or changes in […]