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Consider
the following Top Three Franchise Questions.
Q-1: Why
would I want to buy a franchise?
Franchises have the highest success rates and the lowest failure
rates of any business in North America today! Over 95% of all franchises
are still in business after five years because they all come with
built-in proven success formulas used by the franchisees across
the country. When you purchase a franchise, you will receive on-going
support for the life of the franchise. By on-going we mean, marketing,
training and management support guaranteed by your agreement with
the Franchisor.
Q-2: Why
should I pay royalties?
Royalties are the magic that makes the formula work. What would
it cost you to hire a management, marketing, advertising and customer
support team? The answer is...a lot more than the typical owner
would ever spend! How much would you put back into the business?
You certainly couldn't hire this group for under 10% and vast majority
of all royalties are between 4% and 8%. The wonder of royalties
is that instead of the individual owner footing the bill to run
his or her business, the expense is shared with all of the franchisees
within the organization.
Q-3: How
much money can I make?
This is the most frequently asked question and franchising allows
the buyer the perfect way to get the answer. The Franchisor will
supply to the prospect a complete list of their franchisees with
names and phone numbers and they will require the prospects to call
as many of these franchisees as possible.
This is wonderful
because it allows the buyer to ask all of the "real questions",
such as: How much money can I make? How long did it take you to
get your business up and running? Were there any surprises that
I need to know about? What is the Franchisor really like and any
other questions that you can think of. Many of the Franchisors have
printed earnings claims in their Uniform Franchise Offering Circular
(UFOC) documents but they will still insist that all interested
buyers call the franchisees and get the "real answers".
Obviously,
there are many more question that should
and will be answered by the Franchisor but the above
three are the top questions.
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