Franchising is a business model that provides a specific plan for duplicating the original concept through a licensing agreement so that each independent operation is identical to the other even though each franchise is managed by different owners. This cookie-cutter approach gives future franchisees a ready-made business with a proven roadmap to operating a profitable business just about anywhere in the world.As a result, franchising is arguably the most successful business model ever created.
With a single unit franchise agreement, the franchisor will grant a franchisee a license to operate one unit in a specific location. The franchisor will protect the operator from direct competition with other franchisees within a certain radius or specific postal codes, usually within few miles.
A multi-unit franchise agreement allows the franchisee to open a certain number of franchise units within the protected territories or areas they select from available franchise locations. This is a great option for those that have franchise operation experience or already own a single franchise unit and want to rapidly expand their business and income potential.
An Area Developer (AD) is someone in the unique position of controlling the development rights for a given area. This territory can be a major metropolitan area, an entire city, or even a whole State. The developer buys the rights to market and helps develop the territory for a Brand. By assisting with this growth, the AD can benefit financially from the initial fees and on-going monthly fees collected within the area, as well as, the territorial value appreciation as the Brand matures.
Under the umbrella of a master franchise territory agreement, the franchisee obtains exclusive rights to develop, own and operate franchise units within entire geographic regions such as metropolitan areas, counties, states or even foreign countries. The master franchise owner acts as a sub-franchisor and collects royalties for each franchise unit developed under the master franchise agreement while still maintaining all of the benefits of the original franchisor. One of the benefits of a master franchise agreement is the ability to offer either single unit or multi-unit franchise licenses for owners that will operate their franchise unit(s) under your master agreement.
In many respects, buying a franchise is easier than buying any other type of business. This is because the franchise is required to provide you with financial and operating disclosures that other types of businesses are not required to provide. In addition, you will receive a franchise operating manual which is a step-by-step approach to achieving success without having to guess what to do next.
Our 11 Steps to Own a Franchise
We have access to a large number ofqualityfranchise opportunitiesand our consultants can help locate those that meet your specific goals, objectives and budgets. We also take into considerationwhether you will be actively running the business or if you will be hiring others to manage the franchise business for you.
It is crucial that your franchise application be correct and accurate. When you submit your application, depending upon how the franchisor is set up, your application will move through different departments including finance, territory management, training, marketing and operations support. You will normally be immediately assigned to a territory manager that will act as your liaison with the franchise. In the meantime, be sure to review the Franchise Disclosure Document (FDD). Everything you wanted to know about the franchise, but were afraid to ask is spelled out in the FDD.
Congratulations, you are now a franchise owner.Now that you are a franchise owner it is time for you to get to work preparing for your grand opening. Make sure you are properly staffed and prepared for contingencies. This is not the time to cut corners. Give it everything you’ve got and then a little more to make sure you’re franchise is on the path to success. Then, rinse and repeat the process with another franchise and you will be on your way to accumulating wealth.
Are you ready to own your own business? Contact us today and have the resources to you need to buy a franchise.