(800) 853-8808
info@frangroup.com

Franchise Your Business FAQs

Growing Your Business and Your Brand – FAQs

Q) How long do I need to be in business before I consider franchising?
A) We recommend that you have been in business for a minimum of 2 years which shows a track record of success and builds your credibility as a franchisor.

Q) What are the minimum capital requirements to franchise my business?
A) We will need a minimum of $50,000 liquid capital available to invest if we determine your business is franchisable. This covers the cost of Phase I (turning your business into a franchise) which includes: Legal documentation including the Franchise Disclosure Document (FDD), franchise agreements, territory definition and mapping, operational manuals, marketing materials, state registrations, etc.

Q) Are there additional costs to grow your franchise brand?
A) Yes, successful emerging franchisors establish a monthly advertising budget for potential franchisees between $2,000 and $6,000 per month. We will work closely with you in establishing the right budget to successfully launch and promote your brand.

Q) Do you provide any independent lead generation services?
A) Yes, we have a database of franchise candidates looking for quality options. We also continuously network with lead generation services to leverage our extensive networks of franchise brokers.

Q) How does your company get compensated?
A) Our primary compensation comes from a share of the initial franchise fee we establish that is paid to you upon the awarding of all new franchises. Additionally, we offer an array of franchise development services and the costs of those services vary depending upon your needs.

Q) Can we work with your firm on a non-exclusive basis?
A) No, to maximize franchise sales and effectiveness and to maintain consistency with your brand message and vision we work exclusively to serve you. This helps prevent duplication of efforts and crossing of sales channels as we grow your brand together.

Q) Can we work with other franchise / business brokers?
A) Yes, if we receive a lead from a broker we will manage and work closely with that lead. All leads are closely managed by us so you can focus on being a successful franchisor. We have relationships with over 300 franchise / business brokers through our extensive networks. We provide our relationships as a resource and a value to you to promote your brand.

Q) Does your firm provide reporting to our management team?
A) Yes, you will receive periodic reports on key performing sales and growth indicators. We will work with you and your team to review and analyze your franchise sales variables periodically to ensure that we meet your strategic growth goals.

Q) Are there any guarantees on the success of my franchise company and selling franchises?
A) No, unfortunately there are no guarantees. However, we leverage our years of experience and success in the franchising industry and work closely with you in the beginning stages to minimize risks and potential pitfalls. We also understand and value each other’s time and therefore very selective as it relates to working with the right people and the right concept to successfully grow the brand together.

Q) How do I learn if my business will qualify to be a franchise?
A) We have developed a proven set of criteria and a comprehensive process to determine if a business is franchisable. If your brand meets the minimum qualifications, we will conduct an in-depth feasibility study to present and review with you. We will than determine together if we should move to Phase I – turning your business and brand into a franchise, then on to Phase II – strategically promoting and growing your brand.

Q) How do I learn more about franchising my business?
A) The next step is to contact us directly to learn if your vision of being the next great brand can become a reality through franchising. There is no cost or obligation for an initial consultation so we can learn more about you and your business model to determine if we can help grow your brand together.

Contact us today and learn how we can take your business to the next level.