ANSWERS TO 18 FREQUENTLY ASKED QUESTIONS
11. What is the role of Franchise USA?
12. Why should I buy a franchised business?
13. Does Franchise USA charge any fees to the purchaser of a franchise?
14. How can Franchise USA offer services for free?
15. Will I pay more for the franchise if I use Franchise USA?
16. How will Franchise USA help find the right franchise for me?
17. Why work with Franchise USA?
18. What type of businesses does Franchise USA represent?
19. What are your best franchise opportunities?
10. How much cash do I need?
11. What financial assistance is available?
12. Do I need experience in a particular industry to successfully operate a franchise?
13. How soon can I get my business started?
14. Will you send my information to a franchise company?
15. Will my personal information be provided to anyone else?
16. What is a UFOC?
17. Does Franchise USA offer training, advice or counsel?
18. What is the next step?
Q. What is the role of Franchise USA?
A. We are a franchise brokerage, representing franchises of all sizes, descriptions, styles, prices, and locations. Our consultation process is similar to working with a realtor when buying a home. An industry expert guides you through the search process, helps answer your questions and concerns, and understands your needs and goals in business ownership.
Q. Why is franchising so powerful?
A.
As a result of their extensive surveys, the International Franchise Association tells us that:
- 93% of the franchisees say that a franchise gives them an advantage.
- 88% recommend a franchise over a non-franchised business.
- 83% are happy with their franchise.
- 65% would purchase the same franchise over again.
- The average yearly net income for a franchisee is $91,630.
- The average net income for a single unit franchise is $76,000.
- The average net income for a multi-unit franchise is $142,000!
Franchising as a whole has a 92% success rate for business owners. For franchisees who own multiple units, the rate goes up to 97%. Increased market share equals increased profits and franchising is the best way to gain market share.
Right now, retail franchise businesses represent only 8.3% of the businesses on the street. However, the sales from those franchises represent 40.9% of the total retail sales in the United States. Franchising is the best vehicle for capturing market share. One of the best ways to increase profits is to increase market share. The typical franchise, when compared to an unaffiliated business, is more profitable. Look at the statistics.
Q. Does Franchise USA charge any fees to the purchaser of a franchise?
A. No. You never pay us for any of our work, before or after the purchase. There is no obligation or cost to you for the services we offer.
Q. How can Franchise USA offer services for free?
A. We are paid fees by franchisors who respect the processes we follow and who recognize the high quality and fit of prospective franchisees we refer to them.
Q. Will I pay more for the franchise if I use Franchise USA?
A. No. You pay exactly the same franchise fees with any franchise company whether you work with us or not. Franchise USA is able to provide a win-win scenario for you as the prospective franchisee and for the franchisors.
Q. How will Franchise USA help find the right franchise for me?
A. We work with people across the United States who want to find the franchise business that best meets their needs. To do this properly, we have developed what we call the franchise discovery process in which we ask you detailed questions to determine the business characteristics that define who you are and what you want to do. Some examples of those questions are...
- What are your reasons for wanting a business of your own?
- Have you ever owned a business of your own?
- What hours do you like to work?
- Where do you want your business to be located?
- How do you feel about managing people?
- How much capital do you have to start a business with?
- Will you have partners?
- Do you want to build multiple units?
- How soon do you want your business to open?
- Will you be involved on a full-time or part-time basis?
With this information we can create a personalized profile and model for you to use in evaluating franchise opportunities. We can also match you with to a few franchise opportunities that have characteristics consistent with their goals and interests.
Sorting through many 1600 franchise opportunities can be a long, confusing process. Many people spend months sorting through companies without ever finding an opportunity that has what they really want in a business. We can help!
We've done much of the homework for you. We have carefully pre-screened hundreds of companies from all areas of franchising. We cannot, however, be the the one investigating the franchise. We can and do provide suggestions on how to conduct a thorough and complete investigation of a franchise business, but you are the one who must do the "heavy lifting."
Among the hundreds of companies that we represent are a large number in the "Franchise 500", as well as smaller companies that meet our rigorous standards. We examine the record of the franchisor relating to litigation, failures and, most importantly, the satisfaction of the existing franchisees with the people and opportunity they are involved in. We only want to work with the best.
Q. Why work with Franchise USA?
A. Quite simply, to save valuable time, money and potential aggravation. Our service is free. Your franchise fee will not increase one cent... so why would you not want to work with us?
Q. What type of businesses does Franchise USA represent?
A. A cross-section of 100's of different franchises, full and part-time, small-to-large investment, nationally known to start-ups. They include companies in mall retail, shopping center retail, home based, fast food, other food, automotive, personal service, gift and business to business sales. Approximately half are among the "Franchise 500" and the other half are not there...yet.
Q. What are your best franchise opportunities?
A. It depends... It depends on what you like to do. It depends on what you are good at. It depends on how much money you have to invest. It depends on how you evaluate risk. It depends on a myriad of factors that go into making a good decision—from your perspective, not ours.
Q. How much cash do I need?
A. We have a wide variety of opportunities that have an initial investment as low as $15,000. It is important to note that the investment required in any franchise business is often not a good indicator of the total returns that may be available. The most important requirement is that the concept fit your needs and goals. The concept can cost $1,000 or $1,000,000 but the only way to know if it is right for you is to match it against your personal interests and skills.
Q. What financial assistance is available?
A. Financing can be a major hurdle for any potential franchisee. Start-up costs can reach a high level and it is essential that the franchisee have adequate working capital. It is important to address any financing issues during the investigation of franchise opportunities.
Many people will want to fund the purchase of their new business with time tested, IRS-approved way to start a business using 401(k) and IRA money – with no penalty, no taxes and no loan repayment.
One of the most important sources for small business financing is the Small Business Administration (SBA). The SBA provides loans (i.e. short and long-term) to eligible, credit-worthy start-ups and existing small businesses that cannot obtain financing on reasonable terms through normal lending channels.
The best source of information about financing options for any franchise is the franchisor. Once again, we are dealing with an issue that the franchisor has addressed numerous times with other franchisees and they will have a good deal of information about the practical options that are available. Although we are not involved in the lending process, we can recommend a funding source that specializes in financing franchised businesses. Simply request this information by sending an email to info@FranchiseUSA.Net.
Q. Do I need experience in a particular industry to successfully operate a franchise?
A. No. In fact, most companies are looking for people with no experience in their industry. This is because they want their franchisee to focus on managing the business and not performing the labor their concept requires. Franchisors need people who can be effective in areas such as overseeing employees, generating sales, and running day-to-day operations as efficiently as possible. The franchisee role is typically one of management rather than labor.
Q. How soon can I get my business started?
A. It depends almost completely upon you.
Q. Will you send my information to a franchise company?
A. Only after you have requested and approved such a submission.
Q. Will my personal information be sold (or given) to anyone else?
A. No. Your information is absolutely confidential.
Q. What is a UFOC?
A. The Uniform Franchise Offering Circular is the disclosure document that the FTC requires every franchisor to provide to prospective franchisees before they purchase a franchise. There is information on required fees, the initial
investment, failures, litigation, company history, etc. This is a very
useful tool that needs to be thoroughly examined as a part of investigating the franchise.
Q. Does Franchise USA offer training, advice or counsel?
A. No. We leave that to the professionals. We are careful to represent only the highest quality franchises and we carefully research any franchise before adding it to our listings. We also recommend that you seek advice from a qualified attorney or CPA before making a major business purchase decision.
At the same time, we want to point out the fact that our process is designed to listen carefully to what you want and to understand your goals and aspirations. There are many opportunities out there—some great, some good, some not so good—and it can be quite difficult to weigh their pros and cons alone. We offer a safe, professional environment in which you can learn about opportunities in a variety of industries that span a wide investment range. We'll help you build your business and personal model and define exactly where you want your business to take you and how you want to get there. Our goal is to find a "great fit" for you.
Q. What is the next step?
A. If you're ready to make a profound change for the better in your life. If you want to take control and live the American Dream for yourself. If you want to take the next step to achieving the goals you've set for yourself. All you have to do is get started.
Franchise USA can help you realize your dreams! Simply complete and submit the confidential MINI-PROFILE. We will contact you with free information about franchise opportunities that are available in your area.