Some Weird Things Out There!
So you are trying to figure out how to franchise your business and you get BOMBARDED with all kinds of weird proposals. Just in the last year some strange companies have popped onto the scene. Some of these companies are even asking you to GIVE AWAY equity to franchise your business. That means a percentage of your franchise business revenue that you make EVERY MONTH, goes to someone else…that’s not right! It’s like having a General Contractor ask for a percentage of equity in the house built for you. This makes no sense!
As the franchisor, you’re supposed to be at the receiving end of all revenues, not giving it away! So if you are being asked to GIVE UP EQUITY, turn around and RUN!
Most of these companies double as sales agents (otherwise know as Franchise Brokers or Franchise Consultants) or have affiliate companies that claim they have “hundreds” of franchise brokers. Once they get you in the door, they also expect to get a large commission each time you bring on a new franchisee. This is in addition to their equity share.
Getting to the Truth
There are a lot of brokers and sales organizations posing as franchise developers that are popping up, looking for another way to capitalize on the growth of the franchising industry. Ask yourself…”Do these other companies have the depth and range of experience needed to provide me with ALL THAT I NEED to begin awarding franchises, without cutting into my business?” Even attorney firms will only give you part of what you need when franchising. So what do you need in order to franchise?
We’re Here To Help
At The Franchise Maker, we are passionate about what we do and feel it is part of our duty to safeguard the industry and YOU from some of these outrageous practices. We want you to be aware of what’s out there. Don’t worry! We will help you.
We can’t emphasis enough the importance of asking the right questions when exploring the idea of franchising. Cut through the smoke and mirrors! We have a list of Questions to Ask, to arm you as you are doing your research. Contact us to get it now!
