Frequently Asked Questions
FAQs
We’re here to answer all your
questions.
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Franchises succeed or fail because of the quality of their systems. That is the area you want to kick the tires on.
There are significant performance differences between franchisees. So no, not all franchisees succeed.
Think of franchisee performance like a bell curve. Most franchisees are doing fine, the top franchisees are crushing it, and the bottom are struggling. Your objective during due diligence and validation is to thoroughly understand the business model, its drives, who succeeds, and who struggles. If you don’t think you will be in the top 25% of franchisees, than that concept is not for you.
While you will follow the franchisor’s business model, you will be able to create the culture and customize your business through the products or services offered, marketing strategies, hiring, and management. Some brands allow more customization than others.
Make no mistake about it: Franchisees run their own businesses and put their signatures on them.
Franchisees must bring work ethic, drive, motivation, and people skills.
Our fee is paid by the franchise company. You will pay the same franchise fee whether we are involved in the process or not. That is a federal law mandated by the Federal Trade Commission.
There are fees associated with franchise ownership. Many of those fees are for items that you will need in any business. The financial benefit of franchising is that it reduces expenses by superior processes, improved purchasing power, and centralized support. The efficient nature of the franchise model, higher success rates, and scalability ensure that the better franchises are not more expensive than starting your own business.
Yes, you can. You can do a google search or go to a franchise portal and find brands. However, if you want to optimize your decision, this is not the best approach.
There are thousands of franchises available in the United States. But not all of them provide strong business models and support. In addition, it is easy to get excited about a concept that is not right for you. An interesting fact is that over 75 percent of people who invest in a franchise choose one not originally considered. Using an experienced TPF Franchise Consultant increases your chances of finding the right franchise, and our services are provided at no cost to you.
This is a big decision in your life. Maximize your chances of success.
Noooooooo! There is always fear when you change directions, start a new endeavor, and leave your comfort zone. However, franchising provides the comfort of knowing you are supported by a team vested in your success, and you are part of a proven system.
Franchisors provide significant levels of initial and ongoing support. Perhaps the most important support they provide is psychological. Knowing that you have a proven model, strong marketing, operations, and training provides a needed confidence boost because executing a system is easier than creating one. Franchisors will support franchisees in all ways necessary and appropriate.
A major benefit and differentiator of franchising versus non-franchised business opportunities is that the Federal Trade Commission (FTC) regulates franchising, and the regulations are in place to protect the franchisee. The government requires numerous disclosures and regulates how, when, and by whom information can be communicated. Franchising is a much more predictable model and much easier to perform due diligence on than business opportunities.
In contrast “business opportunities” often masquerade as franchises, but they are unregulated and can make any claim they want because it does not need to be verified or regulated. The franchise world, with its FDD, is much easier to validate than business opportunities.
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