Frequently Asked Questions
FAQs
Franchising can be an excellent opportunity to invest in a proven business model. Luckily, there are processes, systems & procedures in place to follow which can lead to a successful franchise business. If you’re able to follow the system you’re on the right track! If you think you might feel smothered or frustrated, owning a franchise business may not be for you.
- Someone who has the desire to own their own business by following the proven processes, systems, and procedures already built by the franchisor without the headache and hassle of creating the wheel.
- Someone who has business experience in operations, management and finance.
- People who are independent, self-starters, time management experts and can make important decisions for the business and its direction.
How a client goes through our investigation process with a brand is a good overall indicator of how they will approach being a franchise owner. This provides valuable feedback to the franchisor on whether to make an offer.
An experienced consultant will guide you on the right path by identifying if franchising is right for you and which brands match your personal profile, goals, skill sets and investment range. Look for a consultant with knowledge of the franchise world, relationships within the industry and business acumen themselves either from prior or current franchise ownership. A consultant’s job is to help you think critically, disrupt preconceived & usually incorrect information and challenge you in order to make sure you’re making the best decision for your needs and goals.
We are paid by the franchisors, very similar to a Fortune 500 company using an executive recruiter. At no time will you ever be charged by The Franchise Educator (nor any other consultant should you choose another firm) nor are any fees increased to cover our costs.
By working with a consultant through a process, including a personality assessment, we help identify what attributes are important to you, what skill sets are needed, what goals you have, the investment you’re comfortable making – with this information we match concepts available in your market. We then coach you through the investigative process to get awarded a franchise. This takes out so much of the guesswork and helps to set you up for success.
No. Good franchisors are scrupulous during the investigation process. Once someone is a franchisee it is a win–win for everyone to make sure the franchisee is successful. If there is a failed or closed location this will show on the Franchise Disclosure Document (FDD).
If you prefer to do this research this is certainly understandable as so many of us want to feel we are doing our part in a big element of our lives. Be warned there is a lot of information that can make the process overwhelming. However, brands purposely do not put everything out there. Most brands will not provide important information about their business model to the public, this information is only available to people who submit a serious inquiry to explore the brand. These in-depth conversations are the investigation and are acquired by being introduced to the brand by the franchise educator.
One of the positives of franchising is it allows you to explore businesses or industries that you would not normally start on your own, therefore, expanding your options. Because of the proven business model, support systems, and training it allows someone to focus on being a leader and/or business owner – working on the business and not in the business.
For example: Chick Fil A and Dunkin Donuts because they are a better investment, more of a guarantee.
There is a saying I heard years ago – If you’ve heard of it, it’s unavailable, the territory isn’t available or it’s very expensive. There are certainly upsides to having a nationally well-known brand, but like anything there are downsides too. There is an assumption of security and financial success with a well-known brand and that is generally what people are perceiving. But misconceptions live here too – McD’s zees have failed. OrangeTheory owners have sold their units. Crumbl owners didn’t invest b/c of the national sensation – that was a fluke and they happened to be w/the right brand at the right time – franchise lottery. It’s not always perfect. There are great stories of high success or failure – but those are anomalies. Most of the success lives with a well-developed brand that has proven processes & procedures in place. Their marketing is strong, which converts to a loyal customers base. Lastly, corporate support systems are also in place to ensure success.
Usually, the hottest franchise is one that is already taken b/c it has been around for some time. Other investors investigated it, properly evaluated it, accepted an offer to invest in it and decided to accept the offer b/c it matched many of their needs and goals. Then a social anomaly occurs, it hits a prominent popular social note, and it explodes. Google searches, consultants and the brands get bombarded with requests only to have most territories taken or possibly some outliers available. The biggest take away here is if a current hot brand was offered to you before it was big, would you know how to properly evaluate it, and would you accept a possible offer? There are up & coming brands that are making their mark, proving themselves along the way, potentially being that next brand, we will receive calls about in a few years. Are you open to looking now?
The ultimate business ownership dream of many. If this existed everyone in the franchising world would have gobbled it before anyone else could get their hands on it. So, let’s focus on the next best thing – a proven brand with strong systems, processes and procedures in place that meets your goals.
Depending on your experience and available time, maybe nothing. Franchising isn’t for everyone. There are different reasons why someone wants to start a business and what resources they want to have readily available to them. Investing in themselves by investing in a franchise is very similar to being a new parent and having a nanny, a cook, a couple grandparents and a personal massage and mental health therapist on personal standby. You have a team ready to assist you to be your best self, best parent and make your job so much easier. Walking through the pros & cons and which path is best for you is crucial to our client conversations.
Wanting to know the numbers is common and obviously a crucial part to any decision, but it’s only one part of the equation process. To cut to the chase, the franchisors will share all the information regarding investment and returns within the Item 19 per the FTC during an investigation…and what the franchisor cannot share can be discussed with current franchisees during the validation process. However, to get to that stage a client needs to be part of an investigation into the brand. Keep in mind each franchisee is different. They operate their business differently, with different goals, with varying unit economics and management styles. If you go and do research and find some figures online, it’s more than likely a general estimate of figures based on a grouping of franchisees that may or may not have your business acumen. You could do better…or worse. Let’s first figure out which concepts are a good match for your goals and skills and then layer in the investment level with what is available in your market.
There are thousands of franchise options available. Some of them are not available in your market. Some of them do not fit a client’s goals for various reasons; skill sets, goals, minimum net worth requirements, and/or investment level. Once you begin working with us, we will be happy to show you a list of the options available that are not only available in your market but match your needs & goals.
No, franchisors do not look for any reason to take away someone’s business! When you’ve hit a speed bump or a pitfall the good ones come in and provide support. They want you to succeed! Good franchisors are scrupulous during the investigation process. Once someone is a franchisee it is a win-win for everyone to make sure the franchisee is successful. “What’s good for the goose is good for gander”. If there is a failed or closed location that will show on the FDD.
Deciding to franchise your business is a big decision. To franchise or not to franchise. Figuring out where you are in the process and what next steps are best to take can be outlined with a professional – and we can help. Schedule a call with Telanda to discuss this further.
