Articles Index
Franchising as a Career Alternative
It isn’t the norm for students graduating college to consider franchising as an alternative to pursuing corporate success. But, with the competitive challenges in the modern workplace to achieve an executive position and high-paying salary, seeking entrepreneurship through franchising may be a viable option.
Should You Buy From a Franchise Broker?
Franchise brokers are not franchise consultants even though many people confuse these two roles. A franchise consultant offers unbiased advice on purchasing a franchise whereas a franchise broker is like a commissioned salesperson, representing a franchisor client list.
Royalties
Royalties are an integral component of the financial structure of a franchise. They are usually paid monthly by franchisees to the franchisor and are based on a franchise outlet’s gross or net revenues. Without a royalty structure, a franchise system will not have the financial resources to sustain operations or support its franchisees.
The Pros and Cons of Buying a Franchise
If you’re set to start a business venture, you have likely gone back and forth on the dilemma of buying a franchise versus going out on your own. Regardless of your decision, the advantages and disadvantages are equally weighted for both business options.
How Much Money Can Your Franchise Make?
Section 19 of the UFOC may or may not include the anticipated revenue your franchise could earn over a specific time period. By law, a franchisor is given the option to include or exclude any of this information and in most cases, it is excluded. Here are some approaches to getting the financial facts on the franchise you’re interested in buying.
Levels of Support You Can Expect From the Franchisor
One of the advantages to buying a franchise is the initial and ongoing support you will receive from the franchisor. The level of support you can expect to receive will be outlined in the franchise agreement. The larger the franchise system, the more sophisticated the support system should be.