Franchise FAQ

What are the advantages of franchising my business?

The advantages to you when growing your business through franchising are easy to remember.  They are speed, people, and money.

Speed - Expanding your business through franchising is much faster than opening company locations.

People - Franchisees represent the best, long-term management there is.

Money - Franchisees use their capital to open the site, making the cost to you when opening a franchised location a fraction of what you would spend opening company locations.

Read the article; “Ready to Franchise your Business?” for more.

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

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

There will be a binding contract (the Franchise Agreement) between you and your franchisees and a playbook they must follow (the Operating Manual).  These legally enforceable rules 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.

Read the article; “Ready to Franchise your Business” for more.

Is a completed Operating Manual required to start selling franchises?

Yes.  An Operating Manual is a Federal Trade Commission (FTC) requirement for selling franchises in the U. S.  The table of contents and number of pages must be included in the Franchise Disclosure Document (FDD).  Operating Manuals should be at least 150 pages.  Ours are between 200 – 300 pages when completed.

The Operating Manual is included in our Franchise Development Package.

Is a Franchise Disclosure Document (FDD) that important?

Yes.  The FDD is required by the Federal Trade Commission (FTC) for all franchisors offering franchises in the U. S.  It contains 23 Items that explain the franchise that you are offering in plain English.  The FDD includes 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.

The FDD and Franchise Agreement are included in our Franchise Development Package.  For more about FDD design, read the article; “The FDD – One Size Never Fits All.”

I was quoted $75,000 more than what you charge to franchise my business. How can you do it for so much less?

There are a few reasons. A lot of one-stop franchise shops (franchise mills) overcharge for what you get, which are usually generic documents full of legalese gobbledygook anyway. They have a lot of overhead to cover.

On the other hand, I have minimal overhead and do all of the development work myself.  I do work with a seasoned franchise attorney when working on your documents, but I cover that cost.

Learn more on the Franchise Development page or call me anytime at 321.392.3000 X 1.

Do I really need a $25,000 feasibility study?

No.  Feasibility studies are 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.  Just not an expensive consultant’s report.

Read the article; “Ready to Franchise your Business?” for more.

Will I need anything else with your Franchise Development Package?

Yes.  The first one is essential.  The other three are optional.

1. Before you start selling franchises, you will need to hire a franchise attorney to look over the documents and represent you as you sell.  Some development firms claim attorney review, but that attorney works for and protects them, not you.  They can’t “sell” you attorney services.  Budget about $1,500.

2. If you don’t have a registered trademark, you may want to file a registration to protect your brand.  It isn’t an FTC requirement.  Budget about $1,500.

3. Audited financial statements are an FTC requirement in the FDD, but not the first year.  You only need a simple balance sheet and consent letter from your CPA.  Budget about $300.

4. You may want to start a new legal entity for the franchise company.  It isn’t an FTC requirement.  Budget about $500.

Can you help with franchise sales?

Yes. We offer two services. Full-Service Franchise Sales and Franchise Sales Training.

Learn more on the Franchise Sales page.  There is more information about franchise sales in the Franchise Articles section.

What is your hourly fee?

My hourly fee is $195, but I also work on a flat-fee basis, one that we both know up front regardless of the hours I work on your project.

Learn more on the Franchise Development page or call me anytime to discuss your project at 321.392.3000 X 1.