Franchise FAQs
Depending on which franchise you are interested
in, your initial franchise fee could be as little as $1,000 or
as much as $100,000. On top of the initial franchise fee, there
are other significant startup fees. So, the total cost of buying
and launching a franchise location could run from under $10
thousand, to as much as a million dollars.
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Even if you will be able to hire other people,
you yourself will need to know how to operate all phases of the
business since you may need to train employees or fill in for
them when they are absent or if they leave. You will also need
to be a good manager and salesperson and keep good records.
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No. While the franchise company may help with
site selection and other details, there is no substitute for
doing your own research. Be sure you engage a franchise attorney
to guide you through the process once you are prepared to
franchise from a particular franchisor. Remember, a franchise
isn't something you can walk away from easily if it doesn't work
out. Therefore before you sign the franchise agreement, make
sure you determine how many sales you will have to make to be
profitable and whether your territory has the population and the
demand to make it likely you can reach that sales figure even if
a competitor opens. Back Top
Some franchises allow you to sell if you can
find a buyer, and some don't. The UFOC will tell you what the
franchise's regulations are regarding sale or transfer of your
contract to anyone else. Back Top
Some franchises can be run from home and,
therefore, may have lower start-up costs since you won't be
required to build or rent space. But, most of the low-cost home
"business opportunities" are not franchises. They are either
multilevel marketing or direct selling opportunities, or package
deals that promise to give you everything you need to start a
business. Back Top
Reprinted with permission from
The Home Office and Small Business Answer Book
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