FAQs about Franchises

FAQs about FranchisesThere are many questions that go along withgetting yourself into a franchise operation. Ifyou are the owner of the franchise then youparticularly want to know all the specifics aboutowning a franchise, so here are some questions andanswer that many people will typically ask thecompany directly in order to know where to beginfirst.Franchise Question #1: How Much Capital Do YouNeed?Answer: The most obvious concern that one should

think about before approaching a company for oneof their franchise businesses is how much startupcapital they will need. Most of the time thisanswer will be laying right out in the open, butit's okay too if one decides to approach thecompany directly and ask how much he or she willneed. Many times the company will have a startupcapital requirement, but then again somecompanies are only concerned about getting theirfees that are associated with a franchise beingable to use the company name, logo, and reputation.On the same note, it would be a good plan to paythe startup or initial fees of the company withcash instead of relying on a business loan for themoney. Considering the fact that many franchiseswill need to get business loans anyway for alltypes of supplies and other necessary furnishingsthe best route to take would be to essentially payfor your franchise with cash!Franchise Question #2: Where Will You GetSupplies?

Answer: Perhaps the next thing that a franchiseowner will want to know before he or she actuallystarts opening the business is where the supplieswill come from. When dealing with companyheadquarters there are many different rules andregulations that are associated with each type offranchise. Some companies will require thefranchise owner to purchase the supplies, such asseating, chairs, and cash registers from aspecific company that furnishes all of theircompany's store branches, but there may be othercompanies that have real loose guidelines aboutthe whole issue. One must make sure, though, thathe or she knows all the ins and outs of furnishingthe store with supplies before any agreement isever made!Franchise Question #3: Am I required toAdvertise?Answer: This is a very important issue in and ofitself. Many would-be franchise owners don'trealize this, but the advertising that is done for

the franchise is actually done by the companyitself! Some of the fees that are required to bepaid by the franchise include advertising fees,and these advertising costs and fees are supposedto be used by the company in order to generateadvertising and marketing for the franchiseitself. Such advertising methods may includespecial discounts that are given on a monthlybasis, coupons that are placed in newspapers, andcustomer appreciation days. Of course, if thefranchise is allowed to advertise in whatever waythe owner sees fit then no advertising fees mayhave to be paid, but knowing what exactly isrequired is of utmost importance beforeadvertising for the franchise itself!