Franchise FAQ

What are the advantages of franchising my business?

The benefits to you when growing your business through franchising come down to speed, people, and money.

Speed. Expanding your business through franchising is much faster than opening company locations. Your franchisees are managing the bulk of the process. They find the site, negotiate the lease, hire the contractor, oversee the buildout, and employ and train the employees.

People. Franchisees represent the best, long-term management there is. You won’t need to be involved in day-to-day operations or deal with the turnover associated with employee managed, company-owned locations.

Money. After your investment to create the franchise offering, you will be using other people’s money to grow your franchise system. Franchisees use their capital to open the new business, making the cost to you when opening a franchised location a fraction of what you would spend opening company locations.

Learn more about our Flat Fee Franchise Development.

There are a few articles about franchise development in the Articles section of this website.

How much can I make by expanding my business through franchising?

When done right, expanding your business through franchising can be very profitable.

To get an idea of how much you can make by franchising your business, contact me and I’ll send you a Franchise Potential Calculator you can use to forecast franchise sales and royalty for up to ten years.

If I franchise, won’t I lose control compared to company-owned locations?

You do lose the absolute control of firing someone on the spot, which comes with its own set of problems, but you’ll gain control in other ways.

There will be a binding contract (the Franchise Agreement) between you and your franchisees and a playbook they must follow (the Operations Manual). These legally enforceable rules, standards, and policies can be as strict as you want them to be, even to the point of micro-managing your franchisees. Although that is not something I suggest you do.

Is an Operations Manual required to start selling franchises?

Yes.  The Federal Trade Commission (FTC) Franchise Rule requires that you have an Operations Manual.  The Table of Contents and the number of pages in the manual are a required exhibit in the Franchise Disclosure Document (FDD).

A complete, well-designed Operations Manual is the perfect textbook to use during initial and ongoing franchisee training. You won’t need a separate training manual.

Learn more about our Custom Operations Manuals and DIY Operations Manual Template.

What is the Franchise Disclosure Document (FDD)?

The Federal Trade Commission (FTC) requires a Franchise Disclosure Document (FDD) for all franchisors offering franchises in the United States.  It contains 23 Items that explain the franchise that you are offering in plain English.

The FDD must include copies of everything your new franchisee will be signing such as the Franchise Agreement and other agreements. The Franchise Agreement is the legal contract between you and your franchisees.

Learn more about our Flat Fee Franchise Development that includes the FDD, Franchise Agreement and Operations Manual.

I was quoted $25,000 for a feasibility study before I franchise my business. Do I need one?

Not unless you have a very complicated and high-fee offering planned such as a hotel. With smaller startups, feasibility studies are usually a waste of money.

As a successful business owner, you understand your business and industry better than anyone else ever could. Deciding whether franchising is right for you takes some thought and investigation on your part. Just not an expensive consultant’s report.

Can I sell my franchise opportunity myself?

Yes. If developed right, you can sell your franchise offering yourself.

Learn more about our Flat Fee Franchise Development and Franchise Sales.

There are a few articles about franchise sales in the Articles section of this website.

Can you help me manage franchise leads?

Yes. We offer a Prospect Qualification service that works great for managing sales leads.  It also works exceptionally well if you are selling your franchise opportunity yourself.

Learn more about Prospect Qualification.

Can you help us with franchise sales?

Yes.  Learn more about Full-Service Franchise Sales here.

There are also a few articles about franchise sales in the Articles section of this website.

What is your hourly fee?

My hourly fee is $175 but I also work on a flat-fee basis, one that you will know up front regardless the hours I work on your project.  You can also purchase five hour blocks of personal, one-on-one consulting time for $750.

Learn more about our Flat Fee Franchise Development.