Frequently Asked Questions
Not sure if buying a franchise or an existing business is right for you? Below we discuss answers to some of the most frequently asked questions to give you a better idea of the time, investment, and commitment needed to launch, develop, and grow – making the most of a franchise opportunity.
FREQUENTLY ASKED QUESTIONS
What should I consider before buying a franchise?
- Your Abilities
- Demand and Competition
- Training and Support
- Franchisor’s Experience
- Expansion Plans
- What is a Franchise Disclosure Document?
- The Franchise Disclosure Document, formerly known as the UFOC, is a legal document that must be provided by the franchisor to the prospective franchisee at least 14 calendar days before any agreement of sale is signed and finalized. This legal document is intended to provide prospective franchisees with enough information to help them make an educated decision about buying the franchise.
What are the key items in the Franchise Disclosure Document?
- Initial Investment
- Franchisor’s Obligations
- Franchisee’s Obligations
- Renewal, termination, transfers and dispute resolution
- Financial representations
- List of Franchisees – Present & Past
- Financial statements
How can a franchise consultant or specialist help me?
- Help you determine if you are a candidate for business ownership
- Focus on finding the “right fit” for you
- Offer personality profiling and a process to discover types of businesses for which you would be a good fit
- Inform you of industry trends and “niche” opportunities you might not find on your own
- You will probably never pick from a list what could be the “perfect” business for you
- Assist you in the research phase by offering possible questions to ask the franchisor and the franchisees
- offer references for other professionals you may need in your quest for
business/franchise ownership (for example, franchise attorneys and people or
companies that can assist you in accessing your 401K money without interest or penalty)
- Financing possibilities
How much does it cost to work with a consultant?
There is no charge to work with a franchise consultant or specialist.
If I work with a franchise consultant, do I end up paying a higher franchise fee?
You will pay the same franchise fee regardless of the involvement of a franchise consultant.
If I go directly to the franchise, will they negotiate the franchise fee because I didn’t use a franchise consultant?
No. Franchise fees are not negotiable. They will not charge you a lower fee for going directly to the franchise.
How does a franchise consultant get paid?
Franchise consultants are paid by the franchisor to find qualified candidates for their opportunity. Consultants get paid much like a recruiter. When we find a good fit between a franchisor and a potential franchisee…it is a win-win situation for everyone!
Wouldn’t it be easier to look on the Internet and get a list of available franchises?
You can get lists of franchises off the Internet but it can be overwhelming with all of the opportunities available. A franchise consultant can help narrow the field and only show you opportunities that will be a good fit for you and are available in the area in which you are interested.
How much money do I need to buy a franchise?
Depends on the industry type. For example, food and retail franchises will cost more than Service types. If you plan to obtain financing, you should plan on having 25-30% of the total investment in cash to invest.
“When I first met with Anne back in the spring of 2016, I was at a definite crossroads in my career. I knew that I wanted to take on some entrepreneurial role, but wasn’t certain where to go from there. Anne did a quite thorough job interviewing me and getting a detailed picture of who I was, where my skill set lied and what I wanted to get out of a business. Anne then embarked on a very patient, very supportive and very pressure free 6 month process to ensure that I got the right fit. Anne was always available by phone or in person to answer all questions and provide candid no nonsense feedback. At the end of the process I found a business that believe to be the right fit. I can’t recommend Anne enough.”
At Franchise Opportunity Specialist, we can help you find the right franchise or existing business opportunity. We’ll assist you in mapping out your business model, focus in on the right opportunity, avoid roadblocks, and navigate the process.
Give us a call at (972) 786-0017 for a free consultation or complete the following form and we’ll contact you.
Franchise Opportunity Specialist
13140 Coit Rd., Ste. 211
Dallas, TX 75240