Franchisor Expectations
Franchise Disclosure Document (FDD): What You Need to Know
Prospective franchisees typically receive a Franchise Disclosure Document after requesting more information about a franchise or during the Discovery Day process. But this 100- to 200-page legal document is more than just an intimidating pile of papers; it can mean the difference between your success or failure as a franchise…
Franchise Funding: Preparing to Finance Your Franchise
So, you’ve identified the golden franchise opportunity that suits your skill set and needs. What’s next? Funding. Two significant expenses to consider are the initial franchise fee and ongoing royalties. The franchise fee is the nonrefundable, one-time price to operate a franchise using the franchisor’s model. You usually have the…
Choosing a Franchise Opportunity: What to Ask a Franchisor
Choosing a franchise opportunity is much like buying a new car; it’s a big investment that requires its fair share of research. Although a two-seater Porsche with all the upgrades is everything you’ve always dreamed, it likely won’t have enough room for your family of five. And while an SUV…
4 Screens Potential Franchise Investors Must Pass
You’re planning to invest in a franchise, and you’re probably shopping around. You’re checking out the various options, thinking about your personal goals and preferences, talking with other franchisees — really scoping out all the businesses you’re considering. That’s what you should be doing. Getting plenty of information helps you…
Crowdsourcing Franchisee Compliance Checks
Domino’s (formerly Domino’s Pizza) has offered a chance to win a year of free pizza to people who will post Instagram photos of “Domino’s Pizza” signs with their locations, using the hashtag #logoinformants. What’s going on? First, Domino’s has created a clever social media campaign. Reaching Instagram users with the…
How Much Time Does It Take To Own A Franchise?
When you think about owning your franchise business, what are you imagining? You work the same 40 hours each week that you do now. Those hours include tasks like visioning, networking, taking people to lunch, and providing high-level empowerment for your staff. You set your own hours, opening and closing…
Is It a Franchise or a Lease?
2014 was an exciting year for franchises from a legal point of view, filled with high-profile cases that hit the headlines. Fortune magazine recently quoted a lawyer who suggested that much of the legal drama turns on one particular issue: the term of the contract. Franchising is a contractual relationship…
Why Would a Franchise Sue a Franchisee?
In a high profile move, global fast food chain Wendy’s is suing one of its largest franchisees. At issue is the franchisee’s refusal to make changes required by the franchisor: A uniform point of sale (POS) system was chosen by Wendy’s in 2012, and all franchisees were required to switch…
Understanding Franchise Royalty Fees
A franchise business opportunity will always involve upfront costs. Some will go to the franchisor and some will simply be the costs of opening a business — rent, wages, inventory, supplies, utilities, and so forth. There will also certainly be ongoing costs, both the direct costs of the goods and…
Franchisee Troubles
Hashim Syed once received an award from 7-Eleven for running “the best store in the country.” But now he’s under fire from the franchisor after speaking out against the company on WBEZ Chicago on April 8. One week later, inspectors from the franchisor came out to check up on the…