Franchise Review

Are you considering a franchise? 

Franchises can be a lower-risk pathway for entrance into business. Like any business, there are pros and cons to consider.

Here are 7 pros:

1. The concept is already proven.
2. Sophisticated franchisors have great systems and training programs that help first-time franchisees succeed. 
3. Clear guidance is given on permits, licenses, and everything needed to begin. 
4. Franchise disclosers provided by the franchisors include past successes and failures, so you enter the agreement with full transparency. 
5. Franchise laws are largely created to protect the franchisee - you. 
6. Business loans are easier to obtain with proven franchises even for first-time franchisees. The SBA looks favorably at established franchises.
7. You're part of a large organization, so you have support when challenges arise. 

Here are 7 cons:

1. The cost to begin is high and usually includes non-refundable franchise fees. 
2. The franchisor will charge both royalties and marketing % of sales that are non-negotiable.
3. You are often required to use the franchisor as your supplier, giving them the ability to control your margin. 
4. Franchisees are generally given a specific geographic territory which limits growth to just a zip code or small region which can be limiting. 
5. Franchises are prone to competition because a neighboring "ma and pa" shop that sells the same product can always sell similar products at a lower price, since they aren't paying franchise fees or royalties. 
6. Your royalties go to broad, general marketing. Any local marketing comes out of your pocket. 
7. You are beholden to the franchisor for new product development, new marketing campaigns and new growth. 

Our team of advisors have opened hundreds of franchises and can provide guidance as your trusted advisor on any franchise you may wish to review. 

We will help you do the following:

1. We will review your franchise disclosure document with you. 
2. We will detail our observances by providing both cautions and advantages of the franchise you are exploring. 
3. We will evaluate your proposed geographic territory to discuss local marketing opportunities. 
4. We will provide guidance on items within your agreement that you may want to negotiate to improve your position at the start. 

100% Satisfaction: If at the end of our call you don't believe your time with us was well spent, simply request a refund and a full refund will be issued immediately. 

We would love to help you succeed as, together, we apply proven business principles to your business.