HOW CAN A FRANCHISE EXPERT HELP YOU
HOW CAN A FRANCHISE EXPERT HELP YOU
You have begun investigating franchises and now you are overwhelmed, confused, frustrated, and ready to throw your hands up in the air and quit. You have discovered that franchisors ask you all of the questions and it is difficult for you to get your questions answered. The franchisor wants you to fill out information about yourself and you are uncomfortable in doing this at this time. You have hit a “brick wall” and you do not know what to do next.
As a franchise consultant that has assisted many people in going through the process over the past 30 years, I understand your frustration and confusion. All you need is a basic understanding in the process and procedures a franchisor puts all potential franchisees through. Here are some of things I want you to understand.
1. FRANCHISORS DO NOT SELL FRANCHISES, THEY AWARD THEM. A quality franchisor has a profile of who they want as a franchisee. If you do not fit that profile, then you will not be awarded their franchise, no matter what. The basic way a franchisor determines this is by asking your questions and having you complete the franchise application form. The franchisor is basically looking for someone who is willing to follow directions, enthusiastic, positive, open and willing to listen to the franchisor.
2. THE FRANCHISORS CONFIDENTIAL FRANCHISE APPLICATION FORM. It is very important that you answer all of the questions the franchisor is asking in the application form. Omission of a large number of questions could disqualify you from the franchise. Be sure that all answer for truthful and accurate too. If a person falsifies information and later the franchisor discovers this after you have been awarded a franchise, this could be grounds for termination.
3. ACQUIRE THE FRANCHISORS UNIFORM FRANCHISE OFFERING CIRCULAR (UFOC). Before you become too committed and emotional about any franchise business, you will want to read the UFOC disclosure that a franchisor is required to provide you by the FTC. This document will contain very important information about the business, principle people, terms and conditions of the business, financials, existing franchisees and terminated franchisees, and an actual copy of the Franchise Agreement. As you read this document, have a red pen and begin marking what you do not understand or need clarification. Send the franchisor an e-mail with all of your questions.
4. CALL THE EXISTING FRANCHISEES OF THE FRANCHISOR. Select some of the franchisees listed in the UFOC to call and ask them questions such as: 1) Are you satisfied with the business? 2) Is the business you opened represented correctly? 3) Are you pleased the both the initial franchise training and support the franchisor is providing? 4) Would you purchase this franchise again if you had it to do over again? 5) How long did it take for you to break even in your business?
5. VISIT A FRANCHISEE LOCATION. If possible, visit a location that is operating by a franchisee. Determine if the business is busy. How is the look and image of the business? If possible, speak with the staff. Are they happy working in the business? Get as much information as possible.
6. VISIT THE FRANCHISORS HOME OFFICES. You may want to meet the franchisors staff. Some franchisor provide an orientation to potential franchisees who take the time to travel to the headquarters of a franchisor. This could be a great time to see if Area Development Agreements are available.
7. AREA DEVELOPER. The benefits of becoming an area developer are tremendous. Many franchisees who are area developers have a gold mine in the franchise business. I encourage most individuals wanting to purchase a franchise to inquire whether or not area development agreements are available.
8. MAKING THE DECISION TO BUY THE FRANCHISE. At some point, you must make a decision. There are so many variables associated with making that decision that books have been written. I suggest that you follow your intuition. Ask yourself if this is what you want to spend your time working in for the next 5, 10, or 20 years?
9. HOW EASY WILL IT BE TO SELL THE FRANCHISE? Some franchise businesses could be consider a “White Elephant” and difficult to sell if you decided to get out the business. You want a business that will increase in value due to your efforts of building the business.
10. DOES THE FRANCHISOR PROVIDE FINANCISING? Is the franchisor on the register of the Small Business Association? Are there funding companies that the franchisor has used to help a franchisee in the past. How long does it take to go through the process? Have you consider private investors through a Private Placement Memorandum?
HOW CAN A FRANCHISE EXPERT HELP YOU - To learn more about this author, visit Ken Hollowell's Website.
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HOW CAN A FRANCHISE EXPERT HELP YOU?
You have begun investigating franchises and now you are overwhelmed, confused, frustrated, and ready to throw your hands up in the air and quit. You have discovered that franchisors ask you all of the questions and it is difficult for you to get your questions answered. The franchisor wants you to fill out information about yourself and you are uncomfortable in doing this at this time. You have hit a “brick wall” and you do not know what to do next.
As a franchise consultant that has assisted many people in going through the process over the past 30 years, I understand your frustration and confusion. All you need is a basic understanding in the process and procedures a franchisor puts all potential franchisees through. Here are some of things I want you to understand.
1. FRANCHISORS DO NOT SELL FRANCHISES, THEY AWARD THEM. A quality franchisor has a profile of who they want as a franchisee. If you do not fit that profile, then you will not be awarded their franchise, no matter what. The basic way a franchisor determines this is by asking your questions and having you complete the franchise application form. The franchisor is basically looking for someone who is willing to follow directions, enthusiastic, positive, open and willing to listen to the franchisor.
2. THE FRANCHISORS CONFIDENTIAL FRANCHISE APPLICATION FORM. It is very important that you answer all of the questions the franchisor is asking in the application form. Omission of a large number of questions could disqualify you from the franchise. Be sure that all answer for truthful and accurate too. If a person falsifies information and later the franchisor discovers this after you have been awarded a franchise, this could be grounds for termination.
3. ACQUIRE THE FRANCHISORS UNIFORM FRANCHISE OFFERING CIRCULAR (UFOC). Before you become too committed and emotional about any franchise business, you will want to read the UFOC disclosure that a franchisor is required to provide you by the FTC. This document will contain very important information about the business, principle people, terms and conditions of the business, financials, existing franchisees and terminated franchisees, and an actual copy of the Franchise Agreement. As you read this document, have a red pen and begin marking what you do not understand or need clarification. Send the franchisor an e-mail with all of your questions.
4. CALL THE EXISTING FRANCHISEES OF THE FRANCHISOR. Select some of the franchisees listed in the UFOC to call and ask them questions such as: 1) Are you satisfied with the business? 2) Is the business you opened represented correctly? 3) Are you pleased the both the initial franchise training and support the franchisor is providing? 4) Would you purchase this franchise again if you had it to do over again? 5) How long did it take for you to break even in your business?
5. VISIT A FRANCHISEE LOCATION. If possible, visit a location that is operating by a franchisee. Determine if the business is busy. How is the look and image of the business? If possible, speak with the staff. Are they happy working in the business? Get as much information as possible.
6. VISIT THE FRANCHISORS HOME OFFICES. You may want to meet the franchisors staff. Some franchisor provide an orientation to potential franchisees who take the time to travel to the headquarters of a franchisor. This could be a great time to see if Area Development Agreements are available.
7. AREA DEVELOPER. The benefits of becoming an area developer are tremendous. Many franchisees who are area developers have a gold mine in the franchise business. I encourage most individuals wanting to purchase a franchise to inquire whether or not area development agreements are available.
8. MAKING THE DECISION TO BUY THE FRANCHISE. At some point, you must make a decision. There are so many variables associated with making that decision that books have been written. I suggest that you follow your intuition. Ask yourself if this is what you want to spend your time working in for the next 5, 10, or 20 years?
9. HOW EASY WILL IT BE TO SELL THE FRANCHISE? Some franchise businesses could be consider a “White Elephant” and difficult to sell if you decided to get out the business. You want a business that will increase in value due to your efforts of building the business.
10. DOES THE FRANCHISOR PROVIDE FINANCISING? Is the franchisor on the register of the Small Business Association? Are there funding companies that the franchisor has used to help a franchisee in the past. How long does it take to go through the process? Have you consider private investors through a Private Placement Memorandum?
HOW CAN A FRANCHISE EXPERT HELP YOU - To learn more about this author, visit Ken Hollowell'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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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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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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