savvy and industry knowledge are the best tools you
can equip yourself with when preparing to start a
franchise. The Franchise Guy can provide you with
this invaluable information and guidance as you work
your way through the red tape of financing, acquiring
rights, and ultimately starting a franchise.
Acquaint Yourself With Franchise Language
terms to get you started:
Franchise: An established franchise provides the
benefit of name recognition that carries a loyal following,
in addition to a successful business model to base your
own business methods on as you start a franchise.
Territory: The franchisee and the franchiser form
a non-compete agreement that prohibits the franchiser
from opening a new branch within the franchisees' established
Trade Commission (FTC): is a government agency supporting
the Federal Trade Commission Act of 1914 to promote
consumer protection and prevent anti-competitive business
acts. Passed in 1979, FTC Rule 436 was specifically
written to regulate the franchise industry. Additional
information can be found at www.ftc.gov.
An owner of a franchised business branch. A franchisee
may own one or more franchised businesses and play an
active or a passive role in their investment.
The individual or corporation that owns the rights
to a franchise. The franchiser places great value on
a recommendation from a franchise consultant who will
introduce you to the right franchise representatives.
Consultant: A franchise consultant helps you to
select a franchise business that fits your lifestyle
and fulfills your aspirations, in addition to establishing
your expectations, securing financing and preparing
you to meet with the franchise representative. The franchise
consultant is an invaluable resource who's working in
your best interest - at no cost to you!
Investment: Includes a franchise fee paid to the
franchiser for licensing and the rights to open a branch
of that franchise. This is a portion of the overall
cost of starting a franchise that may include
legal fees, leasing fees, staff and equipment expenses.
Be Prepared Financially
the Franchise Financing You Need:
franchised business may be easier to obtain financing
for as a successful franchise has a proven track record
that lenders know and trust.
Small Business Administration (SBA) loan program helps
you to secure a loan with the SBA guarantee using
Certified Lenders or Preferred Lenders - additional
information is available at www.sba.gov
an IRS-approved method to invest your 401k or IRA
into a franchised business without penalty, taxes
or loan repayment.
franchise business opportunity consultant can help you to determine the
financing method best for you.
Consider Your Franchise Business Opportunity Investment Choices
Franchise: A newer franchise offers a fair amount
of flexibility and innovation in your business methods
and can also offer you the opportunity to share in company
growth and profits.
Questionnaire: An online questionnaire used to assess
your aspirations, qualifications and investment potential
to help your franchise consultant determine what type
of franchise will meet your lifestyle needs.
Please contact us for more information about the ABCs of owning a franchise business!
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