Professional Franchise Information

Professional Franchise InformationIf you are thinking about owning a franchise thenthere are some things that you must think aboutbefore starting out on the journey itself. Itwould actually be best to consider what's allinvolved with owning a franchise of a companybefore you actually contact the company you'll beworking with because there may be a lot of hiddenrules and regulations involved that it may noteven be worth it in the first place. Nevertheless,though, if you are set in stone about wanting topurchase a franchise of a company name then there

are definitely some issues that must be clearedwith the company before you sign into any sort ofagreement!The FeesThe first and foremost issue that you'll probablywant to take care of when entering into anyfranchise agreement is what fees you'll be paying.Most companies require that a franchise owner payan initial fee to be able use the company's nameand reputation whenever they want, but there arealso some other fees that they must pay as well.For example, what is usually required is thefranchise owners must pay a percentage of theirprofit to the company itself in return for beinga franchise. Even though this percentage may onlybe 1-2%, it still could take a big chunk out ofthe profits. What you may want to get in writingis exactly how much you'll pay to the company,whether it will be a percentage of the gross ornet profits, and whether or not any fees will be

required the first year considering that manybusinesses do not even turn a profit until thesecond or third year!Renewal AgreementsWhen signing into a contract with a company fora franchise one of the things you may be requiredto agree upon is exactly how long that contractwill be and how long subsequent contracts willalso be. Most companies require that a franchiseowner sign a contract for at least 10-15 yearagreement, but then make subsequent contractshalf of the duration that the first one is signedfor. However, you may also want to know whatexactly will happen if you somehow breach thecontract and bankrupt the franchise before thecontract is up. There may be hefty fines and feesinvolved, but getting all of the specifics inwriting is the best route any franchise owner cantake!

LocationOne important issue with franchises and allcompany branches is the location of each one. Manycompanies have stipulations that are set so thatno company branch can be in the way, or in aphysical location that is close to another of thesame branch. This rule of thumb probably also goesfor franchise businesses, but this is an issuethat you'll want to discuss as well!There are plenty of other things that you mustdiscuss with the company headquarters itselfbefore jumping on any bandwagon or riding on cloudnine! Securing your franchise is very importantand making sure you know all the rules andregulations goes along with that!