Here is some information about
franchising, and about our services. We will answer all of your
questions during our first scheduled discussion. Remember
that we offer a free initial consultation.
Q. What advantages are there to
franchising, compared to opening company stores/offices? A. You
won't have to be on leases, you won't have to hire employees at
every location, you won't have to make emergency trips to replace a
manager, and you will be able to sleep much better at night.
Additionally you won't have to raise a large amount of money for
company expansion. Franchising is a very good way to expand without
a large capital requirement. That is why we say, "Franchise for
Growth and Profit."
Q. I have the impression that
franchising is costly and difficult. Is this so? A. Franchise
development is indeed complicated. There are many steps and there is
a lot of detailed work involved. For the inexperienced, it is easy
to make potentially costly mistakes. Our franchise development
service is economical, and we will show you through a
step-by-step process that it is may not be as difficult as you
think. We handle all the development steps for you.
Indeed, one of the reasons our clients are pleased with us is that
we simplify the franchising process for them, without taking
shortcuts.
Q. What about franchising vs. licensing? A. Licensing is
an expansion vehicle that is best used for a “process,” or a
straight business opportunity.
Franchising exists when
someone: 1) uses the name of an existing business, 2) pays
money to the existing business, and 3) operates in a manner somewhat
as prescribed by the existing business, providing assistance, or
maintaining control. Thus, name, payment, and assistance or
control determine when a franchise exists.
So, one or more of those
has to be eliminated to avoid being subject to franchise
requirements, and normally it is either “name” or “control.”
However, many people who think that they are expanding by licensing
can quickly and inadvertently develop a franchise program without
realizing it. And, many of those who start expanding by
licensing soon discover that they really want more control over the
business operation of the licensee, and that franchising would be a
better expansion vehicle.
Franchising is more
expensive, and takes longer, than simply putting together a
licensing agreement. However, rather than thinking: “I want to
expand. How can I do it and avoid franchising?”, we
recommend that business owners work with someone like Biltmore
Franchise Consulting that can simplify the process for them and help
them “get it right the first time.” We think that unless you
are licensing something like a manufacturing process, franchising
can provide a much greater payoff, and higher level of satisfaction
(and a better exit strategy) than licensing.
Franchising does not
have to be difficult, nor does it have to be costly. We
believe that it is a very good way for a successful business to
expand regionally and nationally.
Q. In which states will I be able to
sell franchises when you complete your services? A. There are 36
states where it is necessary to merely give the prospective buyer a
Franchise Disclosure Document, or FDD, (Previously referred to
as the UFOC). (Some of these states require that you notify
them.) There are 14 states that require registration or filing
on a state by state basis. The 14 states are: California, Hawaii,
Illinois, Indiana, Maryland, Michigan, Minnesota, New York, North
Dakota, Rhode Island, South Dakota, Virginia, Washington, and
Wisconsin.
Q. How long does it take to be ready to
start selling franchises? A. If you contract us today you can be
usually be ready to sell franchises in the 36 states, or be ready to
apply to the other 14 states, in about four months, while we
complete the support materials including the Confidential Operations
Manual.
Q. How long should I allow to complete
all the steps that you will handle for me? A. This depends
somewhat on how quickly you want to complete the program. It
normally takes about nine months to complete the entire
program.
Q. How do your fees work? A. We
work on a reasonable monthly fee, based on time, that pays for our
time and expenses. We work as a consultant, and operate
carefully without a large overhead. We are a specialized, "boutique"
consulting firm, that gives a very high level of personalized
services. For this reason we are able to charge
reasonable fees. We will meet with or communicate with over the
course of the project to explain what has been
accomplished.
Q. Can the development costs be
financed? A. Yes. We offer discounted fees and a financing
plan to help you start your franchise development program without
delay. Please see the Fee Plans
page, and then call us for a personalized proposal to develop your
program.
Q. What is the cost to develop a
franchise program? A. Common wisdom is that it takes $100,000+ to
develop a franchise program. Many franchise consultants charge
about $60,000 to $120,000 to prepare your franchise offer for
sale, providing the same steps that we do. Sometimes it might cost
$20,000 to $40,000 just to prepare the franchise documents and
nothing else. You do not have to spend this much to develop a
franchise program. Our fees are more economical, as outlined. You will
probably earn all of the development costs back when you sell your
first one or two franchises.
Q. Why are your fees less than some
others? A. When you contract us to help you develop your
franchise program, we will apply our 20+ years of
business and franchise experience, resources, and knowledge to your
program, without reservation. We will function as an overall
business consultant to you, helping you do all the things that are
necessary to begin selling franchises. We operate as a
specialty franchise consulting firm, and you don't have to pay for
layers of management, nor do you have to pay a sales
commission!
Q. Why are the franchise documents, the Franchise
Disclosure Document, or FDD, (Previously referred to as the
UFOC) and Franchise Agreement, so important? A. You are
required by the FTC to provide them to potential franchisees.
You must not ignore this important step if you want to sell
franchises.
Q. Why should I contract you instead of
just buying some sample franchise forms? A. Franchising is
complicated unless you prepare franchise programs professionally, as
we do. Why take a chance with something that you are going to sell
for many thousands of dollars? Franchising is changing all the
time. We are a full time franchise consulting firm and will
include the latest trends and franchising methods in the documents
and materials that we prepare for you. Our fee includes a
review and approval by a franchise attorney at no extra cost. You
need this. You should not take a chance with your franchise program.
You might make a simple mistake that could cause the entire
franchise program to fail.
Q. How do you provide franchise
development services nationwide from Arizona? A. We will speak
several times on the phone until we are comfortable with each other.
Then we will travel to your business to meet with you for a
personal evaluation. At that time you can make the first payment and
contract us to handle the franchise development, with a three day
cancellation clause after we meet, if something changes. We
will meet with you several times during the time we work on your
franchise program. There is no additional fee to you for our
travel costs.
Q. Why are your services
different? A. We not only prepare the
necessary franchise documents for the franchise program, We
also prepare all the sales materials, design the franchise marketing
program, develop the advertising program, prepare the operations
manual, and complete the training manual and program for
you. Our franchise development program includes everything
necessary to begin selling franchises, training franchisees, and
operating a franchise program. When you contract us you are
hiring a franchise consultant with extensive experience in all areas
of business structure, operation and marketing. We will not
limit our assistance to the contract that we sign, but will help you
in any way we see necessary. You will also receive free
franchise consulting for a full year after the franchise development
program is complete! This is truly a full-service franchise
development program.
Q. Are you an attorney? A. No, but we work closely
with a franchise attorney on the required documents. We feel
that our position as franchise consultants gives us a broad
perspective and allows us to better help you from start to
finish. In this way we can provide everything that you need to
develop your franchise program. Our attorney reviews and
approves the documents that we prepare. You should also have
your attorney review them on your behalf.
Q. Do I need a business plan? A. You only need a
business plan if you are going to try to raise money or find
investors to pay for your franchise development program. When
you sell a franchise you cannot give the potential franchisee a
business plan, any future projections, or make "blue sky"
statement.
Q. How will I sell the franchise
opportunity? A. You may sell them yourself, you may hire a
franchise salesperson, you can contract with independent franchise
sales agents, or we can refer you to business brokers and
others who specialize in selling franchises. As part of our
consulting service to you we will show you what other clients are
doing, and what is working for them. We will make recommendations
for advertising campaigns, and even develop the copy for your
advertising program. As a free service to you, we will include your
franchise opportunity in our national business opportunity
advertising campaign, after your marketing materials are printed.
This will develop additional inquiries and leads for you.
Q. What other expenses are there? A.
There will be some expenses for accounting, preparing audited
financial statements, and the cost of printing your marketing
materials (design costs are included in my service) and for your
advertising program. Individual state document preparation, review,
and registration fees are additional. You will need some
ongoing assistance from your attorney to help negotiate agreements,
etc.
Q. Could I do this myself? A. It
might be possible, but we don't recommend it. You might make a
serious mistake. Franchising is indeed complex to the business
owner. And besides, you have a business to run and it will
take longer than if you contract us. How many franchises might you
be able to sell because we can finish the process more quickly? That
will pay for our fee several times over. We heard of one
business owner who tried to do this by himself, and two years later
he still wasn't ready to sell franchises.
Q. I am very busy running my business.
How much personal time will be required? A. We don't recommend
that you wait until you "have more time," as it may be a long time
before that happens, if ever. We ask that you make yourself
available for phone/in-person discussions about one to two hours per
week. That's all it takes! It can be early in the morning, later in
the day, or whenever it is convenient for you. We will do all the
work for you. When the franchise program is under way you can hire
staff to support the franchisees (paid by the franchise revenues to
you) so that your personal time in the business does not
increase.
Q. What is the next
step? A. Call us with your questions and request a
proposal. When you are ready we will travel to your location,
at our expense, and start working on your franchise development
program. This can be one of the best business decisions you
will ever make!
We look forward to assisting you!
Please call or e-mail us today for more
information.
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