What Does The Initial Franchise Fee Cover?
What Does The Initial Franchise Fee Cover?
So what do you need to know before starting a small business franchise? While the most important part of selecting a franchise is choosing the business that excites you and will work best for your circumstances, another important aspect of a franchise is the initial franchise fee. Every franchise requires an initial franchise fee, but it’s important to know what this fee includes and how much it will cost, which varies greatly from franchise to franchise. Here’s a look at some of the key components included in the average franchise fee.
What’s In A Name?
When you’re starting a small business, one of the most difficult aspects can be building a client base and gaining the trust of the people in your area. One of the quickest and easiest ways to accomplish this is to open up a franchise with a well established name. This is quite possibly the most important item included in the franchise fee and will usually make the difference between a $10,000 franchise and a $1,000,000 franchise. While a big name can help generate quick and sustainable profits, lesser known franchise names also have some advantages. If you’re planning on starting a junk removal small business and decide to go with a 1-800-GOT-JUNK small business, you’ll benefit from a name that’s also the company’s phone number, which will go a long way in helping your clients remember your name and your phone number.
Won’t You Please, Please Help Me
When you start a small business, often the goal is to gain financial independence and to "be your own boss", but going it alone can a quite a daunting task, particularly if you’ve never owned or operated your own small business before. This is one area where franchises really do offer the best of both worlds. Included in your franchise fee with nearly every franchise is the support you will undoubtedly need to run a successful business. From the initial training, ranging from as little as a couple days, to several weeks in some cases, to the ongoing support and training tools offered by each franchisor, with a small business franchise you’ll definitely feel supported and you’ll always have all of your questions answered.
The Inside Information
One of the toughest parts of starting a typical small business is learning all of the intricate details associated with that particular business. Many successful entrepreneurs have had experience in the business that they choose to pursue, so this makes it a bit easier on them. But what happens if you’re starting a business in a field that you have absolutely no prior experience in? This is where a franchise can really come in handy. Not only does your franchise fee include the equivalent of a copy of the franchisors proprietary operations manual, but you’ll also gain access to the franchisors suppliers and list of clients and business partners. These types of lists can take the average small business startup years, if not decades, to compile, and having inside access to the franchisors suppliers will also often equate to lower costs for products that any small business can manage to achieve.
While some franchise fees may not include some of the items listed above, and some may include quite a bit more, the point of it all is that it’s important and beneficial for anyone considering a franchise to thoroughly investigate the franchise in questions prior to making the commitment. Most franchises make great businesses and provide plenty of income potential, but finding the right one for you and your needs is the name of the game when it comes to selecting a franchise. When you get closer to making your decision, make sure you take the time to ask the franchisor what all is included in their franchise fee, and whether it ends up being more money than it’s worth, or a screaming bargain, you’ll have the information you need to make the right decision.
What Does The Initial Franchise Fee Cover - To learn more about this author, visit Candice Clem's Website.
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Starting a new small business franchise can be one of the most exciting and profitable moves for any budding entrepreneur, but before you make the big leap into a new business, it’s important to know as much as possible about the fundamentals of franchising. If you’ve spent any time looking into the benefits of a franchise, you’ve undoubtedly seen the statistics which show that franchises are nearly twenty times more likely to survive past the 5 year mark when compared to a small business startup. Additionally, franchises have been one of the only types of businesses to show growth in the midst of our current recession.
So what do you need to know before starting a small business franchise? While the most important part of selecting a franchise is choosing the business that excites you and will work best for your circumstances, another important aspect of a franchise is the initial franchise fee. Every franchise requires an initial franchise fee, but it’s important to know what this fee includes and how much it will cost, which varies greatly from franchise to franchise. Here’s a look at some of the key components included in the average franchise fee.
What’s In A Name?
When you’re starting a small business, one of the most difficult aspects can be building a client base and gaining the trust of the people in your area. One of the quickest and easiest ways to accomplish this is to open up a franchise with a well established name. This is quite possibly the most important item included in the franchise fee and will usually make the difference between a $10,000 franchise and a $1,000,000 franchise. While a big name can help generate quick and sustainable profits, lesser known franchise names also have some advantages. If you’re planning on starting a junk removal small business and decide to go with a 1-800-GOT-JUNK small business, you’ll benefit from a name that’s also the company’s phone number, which will go a long way in helping your clients remember your name and your phone number.
Won’t You Please, Please Help Me
When you start a small business, often the goal is to gain financial independence and to "be your own boss", but going it alone can a quite a daunting task, particularly if you’ve never owned or operated your own small business before. This is one area where franchises really do offer the best of both worlds. Included in your franchise fee with nearly every franchise is the support you will undoubtedly need to run a successful business. From the initial training, ranging from as little as a couple days, to several weeks in some cases, to the ongoing support and training tools offered by each franchisor, with a small business franchise you’ll definitely feel supported and you’ll always have all of your questions answered.
The Inside Information
One of the toughest parts of starting a typical small business is learning all of the intricate details associated with that particular business. Many successful entrepreneurs have had experience in the business that they choose to pursue, so this makes it a bit easier on them. But what happens if you’re starting a business in a field that you have absolutely no prior experience in? This is where a franchise can really come in handy. Not only does your franchise fee include the equivalent of a copy of the franchisors proprietary operations manual, but you’ll also gain access to the franchisors suppliers and list of clients and business partners. These types of lists can take the average small business startup years, if not decades, to compile, and having inside access to the franchisors suppliers will also often equate to lower costs for products that any small business can manage to achieve.
While some franchise fees may not include some of the items listed above, and some may include quite a bit more, the point of it all is that it’s important and beneficial for anyone considering a franchise to thoroughly investigate the franchise in questions prior to making the commitment. Most franchises make great businesses and provide plenty of income potential, but finding the right one for you and your needs is the name of the game when it comes to selecting a franchise. When you get closer to making your decision, make sure you take the time to ask the franchisor what all is included in their franchise fee, and whether it ends up being more money than it’s worth, or a screaming bargain, you’ll have the information you need to make the right decision.
What Does The Initial Franchise Fee Cover - To learn more about this author, visit Candice Clem's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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