Tutorials
The basics on franchising from A to Z! Here, you can find 24 Franchise Tutorials on topics you need to know before signing the franchise agreement, such as deposits, disclosure documents, inventory, insurance, audits, and more. Plus, you can browse quick and easy-to-follow videos, and complete the Franchise Tutorials Quiz to test your knowledge!
Franchising is a business relationship in which an owner (franchisor) gives a license to a third party (franchisee) allowing them the right to use its operating system, name, trademarked materials, products, and marketing techniques.
Have you ever wondered why franchisors charge franchise fees? Simply put, these fees ensure the franchisor has a vested interest in your future. But let’s back up a little bit. You’re probably asking yourself, what exactly are franchise fees and why are they important?
As someone who is seriously considering investing in a franchise, you’ve probably completed your fair share of research. And if you’ve conducted all your due diligence, it’s inevitable that you came across something called a Disclosure Document.
Based on the research you’ve conducted up to this point, you should understand the most common fees, including ongoing royalties and the initial franchise fee. But did you know that franchisors may also require franchisees to contribute to something called an advertising fund?
When it comes to providing franchisees with support, great franchisors won’t just stop with the initial training. In fact, you’ll know right away if a franchise is successful if they put a heavy emphasis on ongoing training.
Joining a successful franchise system means franchisees get the security of operating a proven business model with support and guidance from head office. What you may not know is that many successful franchise systems have something called a Franchisee Advisory Council (FAC).
One of the great things about opening your business via franchising is the peace of mind and confidence that comes with knowing the products, equipment and supplies you use to successfully run your operations meet the high standards of your franchisor.
Whether it’s five years or 20, all franchise agreements eventually come to an end. You’re not buying the right to use the brand but leasing it like the lease of a commercial space. And like the lease of a commercial space, at the end of the term, you typically have an option to renew.
Just because you invest in a franchise business, it doesn’t mean you’ll be a franchisee for the rest of your life. Franchise agreements don’t last forever, and even after signing your initial contract, there will come a time when you have to renew it.
Protected areas may be defined by distance, radius, postal codes, municipalities or cities. The territorial boundaries are defined in the franchise agreement and will often state that no other franchise or corporate location under the same brand will be opened within the territory.
Aside from the classic single-unit franchise agreement whereby a franchisee opens and operates one location, many franchisors will reach an agreement with their motivated and go-getting partners to open multiple franchise units. Multi-unit, area development, and master franchisee agreements are all options available to you depending on the franchise you invest in.
