Franchising is a method of owning your own business under an established brand name with a tested, marketable system of rules and procedures laid down by the “Franchisor.” The base of all Franchises is the UFOC (Uniform Franchise Offering Circular) encompassing information regarding the company executives, financial condition, customer base, equipment and/or supplies, products, services, training, marketing, daily operational guidelines and on-going advisory consultants. A Franchise agreement usually runs ten (10) year or longer and relieves you of the costly time and research in opening a “start-up” business. The Franchisor has done this work for you, including location, exterior/interior building design and creating an efficiently productive consumer friendly operation.
In choosing a Franchise, it is important to explore the types of businesses with which you are familiar. Personal knowledge of that specific business will increase your skills in the management and growth of a long term, profitable endeavor. When you find a potential Franchisor discuss your “Business Plan” with them to clarify the requirements needed in reaching success for all parties concerned. Having a comfort level regarding a particular business, will allow you to proceed with the following initial steps for securing the Franchise:
1. request a copy of the UFOC;
2. have a Franchise Attorney review the UFOC and Franchise contract;
3. sign a Franchise contract which includes the monthly royalty and advertising costs based on sales;
4. pay a one time Franchise Fee.
These steps are your commitment to uphold the rules and regulations of the “Franchisor” while assuring you of their company’s total business support and assistance in helping secure your success.
Please call the Chamber for more information about SCORE or to schedule a meeting at 214.217.8484.
Stay tuned later this week for another great article from SCORE: “Import Export Business.” Click Here in case you missed last weeks article.