Most people who have a general knowledge about franchising know that every franchisor charges a royalty fee. A franchise owner is contractually obligated to pay the franchisor a portion of their sales over the life of the agreement. The payment is normally made on a weekly basis. However, there is a lot of confusion regarding … How Significant are Royalty Fees?
By Rick Bisio | Posted January 2, 2019
Although the Franchise Disclosure Document (FDD) is a uniform document providing information about a franchise organization, there are many aspects about owning and operating a franchise that vary from state to state. This can include taxes, real estate leasing prices, operational costs and local licensing agreements. The Franchise Rule The first area of focus tends … Consider Local Factors Before Purchasing a Franchise
By Rick Bisio | Posted December 12, 2018
Franchisees have a lot on their plate before they invest in purchasing a franchise. They need to interview with a franchisor, thoroughly read the Franchise Disclosure Document (FDD), incorporate the franchise to save on payroll FICA taxes, and file for a Doing Business As name (DBA). Trademarks must also be taken into consideration, too. These … Why Does a Trademark Matter to a Franchise?
By Deborah Sweeney | Posted October 22, 2018
There are a lot of reasons why now is a good time to take the leap and start a small business. 2018 and 2019 are both shaping up to be advantageous economically, thanks to 2018’s tax reform that benefits small businesses. Overall the health of the economy is positive. A study conducted by Intuit projected … Now is a Great Time to Start a Business
By Eric Bell | Posted October 15, 2018
Before a franchisee makes the decision to invest in a franchise, they must thoroughly read the Franchise Disclosure Document (FDD). This document is typically provided to the franchisee by a franchisor once the franchisee has completed and submitted in their application. The FDD contains extensive details about the franchise system and franchisor’s expectations — broken … A Quick Primer Inside the Franchise Disclosure Document (FDD)
By Deborah Sweeney | Posted August 13, 2018
To the outsider, franchising may appear static. However, to those of us who specialize in this sector, we know that franchising is constantly changing and evolving. These evolutions not only require staying up to date, they necessitate changing strategies to offer effective, and current, advice as a franchise coach. Case in point, I’ve had to … What’s New in Franchise Financing for 2018
By Rick Bisio | Posted July 10, 2018
Franchisees who are serious about buying a franchise already know that they’ll need to undergo an interview with a franchisor before they can sign the franchise agreement and make the investment. Much like any interview, franchisees know they can’t walk in unprepared. They have to do their homework in advance and that typically means being … What Franchisees Need to Do Before Interviewing with a Franchisor
By Deborah Sweeney | Posted July 2, 2018
When it comes to financing a franchise, you have several options to choose from—withdrawing funds from your retirement account, small business administration loans, financing through the franchisor, home equity loans/second mortgages, borrowing from family or friends, or using your own savings. If you are opting for any sort of loan or outside financing, there are … 5 Tips on Financing a Franchise
By Eric Bell | Posted May 17, 2018
Many entrepreneurs new to starting a small business know there are a few legal procedures they must accomplish before they can open up shop. Some of the primary ones include incorporating or forming an LLC to protect their assets, obtaining employer identification numbers (EINs) if they plan on hiring employees, and filing annual reports to … What’s a DBA and Why Does It Matter to a Franchise?
By Deborah Sweeney | Posted May 8, 2018
Prior to Investing in a Franchise, Interview Existing Franchisees First One of the most important steps in your journey to find the ideal franchise opportunity is what’s known as validation. Validation refers to the process of interviewing franchisees who have bought into a concept that you have expressed interest in. It is during the validation … Before You Buy: 10 Questions to Ask a Franchisee
By Eric Bell | Posted April 23, 2018