Find Your Franchise Fit

In exchange for a franchise, the franchisee usually pays the franchisor an initial start-up fee and annual royalty fees or licensing fees, depending on the language in the franchise agreement, to use the franchisor's proprietary business knowledge, intellectual property, processes, and branding, allowing the franchisee to sell a product or service with the franchisor's business name.

Investment requirements for purchasing a franchise differ tremendously based on the industry and the type of business the franchise operates. Total start-up costs can range from $1000,000 to more than $600,000, depending on the franchise selected and whether it is necessary to own or lease real estate to operate the business.

Do I have what it takes to start my own business/be an entrepreneur?

Do I have what it takes to be a franchisee?

Do I have all the answers I need about the franchise I am considering buying?

The best franchises are those with proven franchise business models and strong support systems that provide high-quality products or services that stand out from competitors. You can learn about the details of a franchise by researching its process to become a franchisee, reading its franchise agreement, speaking to current franchisees, and examining a franchise’s performance data to make an informed franchise business decision.

A franchise or franchising is a method of distributing products or services involving a franchisor, who establishes the brand’s trademark or trade name and a business system, and a franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system. Technically, the contract binding the two parties is the “franchise,” but that term more commonly refers to the actual business that the franchisee operates. The practice of creating and distributing the brand and franchise system is most often referred to as franchising.

Some of the most successful businesses across a variety of industries are franchises - it’s not just fast-food chains! Buying a franchise is a great route if you are looking to become an entrepreneur but don't want the risk of starting a business from the ground up. As a franchisee, you benefit from the brand name, marketing, operational systems, and the products and services of the franchisor you work with. This gives you access to a wealth of knowledge on how to succeed in your business, giving you the independence of a business owner with the support of a bigger company’s resources and knowledge. However, even Franchises come with risk and your success is not guaranteed, although your risk is reduced with a franchise business model.

Buying and investing in a franchise is a process involving careful consideration. This process includes finding the right franchise for you, tailored to your skills and interests, within your budget.

Once you determine the franchise or franchises you are interested in, do your research. Find out anything and everything you can from competition, revenue, and their background. Explore the geographic location you desire to see if it is a good fit for your franchise and scope out what competition might be present.

Then you will undergo a discovery process with the franchisor where they learn more about you, you learn more about them, and ultimately, you'll decide if you want to invest in the franchise! Joe Franchise will assist every step of the way.

Once you’ve selected a franchise system to investigate further, you’ll need to do additional due diligence to determine if the franchise is as good as it sounds in its promotional materials and sales pitch! This is where we come in.

Things to look for include:

• Does the company have a good reputation?
• Is the company growing?
• Is the company well managed? Does it seem well organized?
• What are customers and franchisees saying about the company?
• Is the franchisor profitable? Are the franchisees profitable?
• How much would you need to invest and how long would it take to break even?
• Does the franchisor have sufficient capital resources to execute on its growth plans?

Joe Franchise operates as an autonomous consultancy that benefits from a referral commission when you decide to invest in a franchise we've introduced you to. Our services come without any recurring fees. Unlike real estate agents, our compensation structure is somewhat parallel, where the franchise provider compensates us. It's crucial for our relationship that you understand our compensation model, as it motivates us to guide you towards a franchise we represent. The arrangement for these referral fees varies, typically being a percentage of the initial franchise fee you pay to the franchisor. This percentage may fluctuate between 30% and 50%, influenced by the contract specifics and our role in the recruitment journey. For instance, on a franchise fee of $50,000 with a negotiated referral rate of 20%, our firm would receive $10,000 (keep in mind, this scenario is purely hypothetical and might not mirror the exact terms of our agreement with your chosen franchise). Our policy is to maintain transparency with our clients about our commission-based earnings, ensuring you're aware that our reward comes from facilitating your franchise purchase. To delve deeper into the specifics of our partnerships with franchise brands, we invite you to explore our comprehensive Disclaimer.