Franchising Frequently Asked Questions

We are sensitive to your needs to minimize costs. Our fees are minimal and our rates are set.  There are no surprises.  No need for you to spend tens of thousands of dollars to franchise your business.   Compensation for our services are broken down into different phases and you pay as each phase is completed.  We offer a Pay-As-You-Go program means you do not have to commit to a large sum of money up front. Our Pay-As-You-Go program gives you added confidence in our services, since the risk is shifted on us to perform for YOU. Call Us Now to learn more.

The length of time it takes us to create a Franchise system is subject to: Your concept, how established it is and what your business model has to offer.  It can take as little as 45-90 days for us to complete all the necessary franchise disclosure documents (Franchise Agreement, Exhibits and Area Developer Agreements) you will need to offer franchise opportunities.  The timeframe it takes for us to build your franchise structure will depend on how fast you want to proceed - we move at your speed.  Once all the disclosures are prepared, submitted to a Franchise attorney (one of ours or one in your area) and he/she reviews them, the disclosures will then be filed within your home State.  Timeline for approval from the State could be a few weeks to a couple of months; depending on how fast the State moves.  Hypothetically speaking, a business could be offering franchises within 2 - 3 months!

Both Federal and State Governments regulate franchises. This means that every franchise system is required to provide prospective Franchisees with a disclosure package referred to as the Franchise Disclosure Documents (previously known as the UFOC). This is one of the things that separate a franchise system from a licensed opportunity and why so many people invest in franchises. Franchise systems are regulated to protect potential Franchisees, have the perception of being a “safer” investment, have much lower risk of failure and gives added creditability to your business model.

The line between licensing vs. franchising is a tricky one. Offering a franchise is subject to FTC and state regulations (See also: Franchise Registration; Some States are Tougher) , which require disclosure statements (collectively known as the FDD package).  A licensed opportunity does not carry such regulations and typically does not provide organized training, support, marketing and ongoing assistance. The biggest difference is that as a licensed opportunity all control is lost, you cannot even require licensees to use your name and marks. Franchising has a much greater deal of control by the franchisor, especially when it comes to providing consistent products and services. There are also other factors to consider, which we will go over with you during our consultation.

Related article: License or Franchise: There are a few differences.

The main advantage of being a Franchise System is the level of control you have over the entire system. If branding your business and consistency of product or service is essential then franchising is the best way to go.  Franchising is simply a vehicle used for rapid expansion.  Besides entrepreneurs using their resources (money) to start your business in another area, they have a vested interest to make it successful.  When franchising is done correctly, it is not unusual for franchisees to have businesses more successful than the franchisor and the loyalty built within the franchise system is priceless.

Not every business is capable of making the transition to franchising. Some businesses succeed because they fill a market niche in a specific geographic location. This same business might not be profitable in different markets. The best way to learn if your business is ready to franchise, is to give us a call. Tell us about you, your business and your expansion goals.

Remember that franchising is countercyclical to the economy.  History has shown that when people lose their jobs and/or their security is threatened they turn to entrepreneurial thoughts.   Remember the perception of franchising is that it is “safe” therefore making it an attractive offer.  Add on top of that, franchise concepts that are home-based or mobile requiring very little overhead expenses and we have the ingredients for a perfect franchise sales climate.   Smart franchisors understand the opportunities in a down economy and will take advantage of them.

Not only will you benefit from our process, but also from our team of professionals, all our resources, experience and knowledge. Not to mention, you are not spending a small fortune to franchise your business and we offer a Pay-As-You-Go full service franchise development program. Our franchise development program is geared towards results and is broken down into various phases. We would much rather see you spend your resources fine tuning various pieces that make your system stronger rather than spend a fortune to franchise it. Our franchise development program is unique in that does not trap you into having to do everything we offer and shifts the risk on us to perform for you.

The answer is simple. Rather than use your money opening satellite locations and hiring employees, who do not care about your business to run it, use the resources of an entrepreneur who has skin in the game, to brand your business using their money.  As a Franchise system you maintain control and it is the optimal way to expand your business into other locations.

The unpredictable is registration of the Franchise system in registration States.  There are fourteen States that require a stricter registration process to begin offering for franchises for sale.  For example, California is the strictest of all fourteen States and the approval process to begin offering the sale of Franchises in California can take a few weeks or a several months depending on who is assigned to review the FDD and how well the FDD is written.  We have had tremendous success in California.  Each registration State is different and timing for approval can vary.  So far in our experience, it has only taken a few weeks.

You must be a business owner who is passionate about wanting rapid growth, branding, have a strong desire to teach and provide a proven method of obtaining success for others.  Your business must be in operation for at least one year and have a unique selling proposition.  Often times it’s the most common product and/or service with a unique twist that lends itself well to franchising.  In other situations, your business could be “the first of its kind” and if that is the case, then you had better give us a call before someone else with your same business model franchises it before you.

Some would say the biggest pay-off is money and wealth.  I would say that after seventeen years of Franchise experience and my involvement with large franchise organizations with hundreds of locations strong, that the biggest reward is the tearful testimonial of a franchisee who, when being recognized for their achievements, stands up and says; “If it was not for XYZ company, I would not be where I am today.  I am successful, happy and making a good living doing what I love while putting my children through college."