Franchising 101

What is a franchise?
A franchise is the agreement or license between two legally independent parties which gives a person or group of people (franchisee) the right to market a product or service using the trademark or trade name of another business (franchisor). Find out here.

What are common franchise terms?
This type of franchise includes not only a product, service and trademark, but also the complete method to conduct the business itself. Find out here.

What are the alternatives to franchising?
In addition to franchising, there are two other popular methods by which businesses expand their market and distribution channels. Find out here.

What are the legal issues of franchising?
A good relationship between the franchisor and franchisee is critical for the success of both parties. Find out here.

What are the advantages and disadvantages of owning a franchise?
Find out here.
 

What are your options when you begin your business?
Once you make the decision to start your own business, you need to decide whether you want to be an independent business owner or a franchisee. Find out here.

How do you investigate your options?
Regardless of whether you choose to remain an independent business owner or become a franchisee, research is the single most important activity in your decision. Find out here.

How do you investigate a franchise?
Like starting any business, buying a franchise involves risk. Studies show that successful franchisees conduct their own marketing research. Find out here.

What are the criteria for selecting a franchise?
Before buying any business, you must carefully consider many factors that are critical to your success. Find out here.

What are the key subjects in the Franchise Agreement?
One of the main benefits you receive when purchasing a franchise is the use of well-known trademarks. Find out more.

What information is found in the FDD?
The purpose of the FDD is to provide prospective franchisees with information about the franchisor, the franchise systems, and their agreements. Find out more.

What are the key items in the FDD?
Find out here.

What do you have to know about financial statements?
Financial statements are the track record of the franchise. They are provided for you in the FDD and contain important information. Find more more.

Where can I get help?
Find out here.

What should I ask the franchisor?
Does the franchisor's staff attend seminars on franchising and management? Find out more.

What should I ask the franchisees?
How much support do you get? Are you satisfied with the franchisor? Is the franchisor fair and easy to work with? Find out more.

What questions should I ask myself before buying a franchise?
Find out here.

What are the keys to franchise success?
Making any business reach its full potential takes talent. If you've selected your franchisor well, your franchisor will be able to help you avoid many of the mistakes new, independent start-up businesses make. Find out more.