The Franchise Disclosure Document (FDD) is a critical document that prospective franchisees need to understand. It provides detailed information about the franchisor and the franchise
A: A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name, or advertising symbol and an individual or group wishing to use that identification in a business.
A: Choosing the right franchise involves considering factors such as your financial capacity, skillset, interests, and lifestyle. Mariel Miller can guide you through this process, helping you find the right match.
A: Costs include the initial franchise fee, setup costs, ongoing royalties, and advertising fees. The amounts vary depending on the franchise.
A: The FDD is a legal document that franchisors must provide to prospective franchisees. It contains information about the franchise, such as its history, financial statements, and agreements.
A: A franchise agreement is a legal contract between the franchisor and franchisee that outlines the terms and conditions of the franchise relationship.
A: Yes, many franchisees own multiple units. This is called multi-unit franchising.
A: Not necessarily. Franchisors provide training and support, so industry-specific experience is not always required.
A: Support varies by franchisor but typically includes training, operational support, marketing assistance, and ongoing advice.
A: A royalty fee is an ongoing payment made by the franchisee to the franchisor, usually a percentage of gross revenue.
A: The term varies but is typically between 5 and 20 years, often with renewal options.
A: Yes, franchises can usually be sold, subject to franchisor approval and terms in the franchise agreement.
A: Earnings vary widely depending on the type of franchise, location, and your management skills.
A: A territory is a specific geographical area where you have the exclusive right to operate your franchise.
A: Most franchise agreements are standard and non-negotiable, but some terms may be open to negotiation.
A: It’s highly recommended to engage a lawyer experienced in franchising to review the franchise agreement and FDD.
A: The timeline varies by franchise, but it typically takes several months from signing the franchise agreement to opening day.
A: Risks include financial loss, time commitment, the potential of franchisor failure, and market risk.
A: Yes, like any business, a franchise can fail. However, with proper due diligence, selection, and management, risks can be mitigated.
A: A turnkey franchise is one where the franchisor provides the complete setup for the business, allowing you to “turn the key” and start operations.
A: Contact Mariel Miller for a preliminary consultation. She can guide you through the franchise selection process, ensuring you make an informed and confident decision.
Take the quiz and see how you do!