As a business broker, franchise FAQs are some of the most common questions received at our office. Here we have complied a few of the most asked questions to provide a basic understanding of franchising.
Common Franchise FAQs
- What Is Franchising? Franchising is a way to sell or distribute products or services from more than one location. Rather than simply opening up additional stores to expand, the original owner (franchisor) lends the franchise name/brand and/or business system to a buyer (franchisee). The franchisee pays the franchisor an initial fee and usually royalties for as long as they operate the franchise, but beyond those amounts, the franchisee keeps the profits and runs the business as his or her own, within guidelines set forth under the contract.
- How Do I Choose a Franchise? This is our most common franchise FAQ. It comes down to a combination of personal preference and abilities, franchise availability, budget restraints, and market demands. What do you want, what can you afford, and what will succeed?
- How Much Does A Franchise Cost? Franchises vary widely in cost, from a few thousand dollars to millions. Cost is determined by the type of franchise, the industry, the location, overhead requirements, the state of the business when you buy it, and the physical location needs.
- How Do I Find A Franchise? You can find a franchise in several different ways. You can conduct an internet search of franchise directories, you can identify a company you want to franchise with and contact them directly, or you can work with a business broker. A business broker will provide you with the most comprehensive service, helping you with research and answering all of your questions.
For more answers to common franchise FAQs, contact Crowne Atlantic Properties at 407-478-4101.