If You've Got Questions, We've Got Answers

If you’ve got questions, we’ve got answers

Anyone who is serious about starting a franchise—or even seriously considering this avenue— is going to come to the table with questions.

Since you’ve signed up for Franchise 2.0, I know you take your future seriously. You’ve already taken the first step towards understanding what it takes to start your own franchise business, and you’re not going to let anything get in the way of your success.

That’s why this week, I want to share with you the 10 most frequently asked questions I hear from my clients:

1. Are franchises expensive? About 17% (nearly 700) have an all-in investment of less than $100,000. Over half of our franchises cost $250,000 or less to open your doors. It’s a myth that you have to invest big to return big.

 2. Does everything have to be paid upfront? When you're ready to sign and submit your franchise agreement, only the franchise fee is due at signing. The other costs of opening your franchise are expensed when incurred.

 3. Isn’t franchising just fast food and retail? Franchising covers over 70 different industries. It may not be as diverse as creating a start-up, but franchising does offer a wide variety of business opportunities.

 4. Can I finance my franchise? How do I find out about that? Yes! I help many of my clients connect with financial experts for this very reason. Experts in financing can help you understand your options to finance your franchise. Our partners help my clients determine their best option, whether that's an SBA loan, commercial loan, ROBS (Rollover of Retirement Assets), or other financing option. They will do a free cost of capital analysis for you.

 5. How do franchise companies determine my territory? Territory is usually determined based on population or number of households. Franchise companies may use other demographics to put together zip codes to identify the territory. You can expand your geography by purchasing multiple territories.

6. Why should I work with a consultant? Investigating franchising takes a commitment of time, and a consultant can help make that process easier. A consultant like myself can help you identify the right franchise for you and guide you through your franchise journey.

7. How much do you charge? You pay nothing for my service. We operate like the Real Estate Industry, where the seller (the franchise company) pays the broker (me). In my case, the franchise company pays my fees if and when a deal is done. My clients don’t have to pay a penny out of pocket.

8. How do I get started? My prospective clients complete our confidential questionnaire, or “CQ." The CQ gets you thinking about business in general and gives me the right perspective on the best match for you.

9. How long is a franchise agreement? Most franchise agreements run for 10 years. Some agreements are shorter, and a few are longer.

10. Do you offer legal advice? I connect my clients to experts in franchise law, since I work with law firms that have developed their practice to help franchise owners. This prevents any conflict of interest.

There you have it! My top ten questions with top ten answers.

But I completely understand if you still have questions—you're taking this seriously, after all!

If you do have more questions, I'd love to answer them. Hit reply or connect with me on LinkedIn, and let me know what questions I can answer for you. I'll send to you a Free copy of The Franchise MBA, the best selling book on Amazon about Franchising.

Regards,

Rick Morgin,

P.S. and let me know what questions I can answer for you.