The up-front costs to open a franchised business can be as little as $20,000 and as much as many millions of dollars. For many franchisees, this means finding a way to finance their investment. Many financing options exist and prospective franchisees should consult with financial and legal advisors before signing any agreements. Some examples of financing options include: Bank loans Traditional bank loans are a common source of franchise financing. Franchisees will need to demonstrate a solid business plan, a good credit history and sufficient collateral. SBA loans The Small Business Administr ..read more

Owning a franchise can be very rewarding. It also requires a significant financial investment and a substantial personal commitment of time and effort. While most people have some familiarity with franchising, at least as a customer of franchise businesses, there are a lot of misconceptions that can effect a prospective franchisee’s decision to pursue, or not pursue, their initial interest in an opportunity. Misconceptions regarding franchise ownership One common misconception about franchising is that it is limited to fast-food restaurants. The truth is that franchising ideas exist in almost ..read more

Owning a franchise can be your ticket to entrepreneurial freedom and financial success. But before jumping headfirst into a franchise agreement, ensure you are truly ready for everything the business entails. Buying a franchise is not a decision to take lightly. Buying and building a franchise requires significant investments of time, money, and sweat equity. Evaluating your readiness can keep your franchise fever from becoming a cold reality. Here are some key areas to assess. Financial fitness Franchise opportunities are expensive. Be honest with yourself about your budget. Research upfront ..read more

With any new business, there is always the potential for failure. Prospective franchisees often look into franchising because they want to run their own company and they are looking for the most stable way to become a business owner.  Franchisees are more likely to succeed when they have thoroughly researched and planned their franchise ownership. If the franchisor supports the franchised business, there is brand recognition, and the franchisee knows what to expect, the franchisee is more likely to succeed. The franchisor supports the franchised business. Franchisors may provide franchise ..read more

Franchise businesses have become a cornerstone of the modern entrepreneurial landscape, offering individuals the opportunity to own and operate their own businesses with the support of an established brand. However, amidst the many advantages and opportunities, there are potential legal challenges. One such critical concern is the joint employer doctrine; another is vicarious liability. There are differences between the two. Vicarious liability is a legal doctrine that holds the principal or employer responsible for the actions of its agents or employee. Franchisors are potentially susceptible ..read more

Entering the world of franchising is a significant decision that could transform your career trajectory. The benefits of operating under an established brand can be considerable, but it’s essential to recognize that owning a franchise comes with risks and responsibilities. Before making such a pivotal commitment, you must conduct a thoughtful evaluation to determine if a specific franchise aligns well with your skill set, interests, financial circumstances and long-term goals. Before buying a franchise, potential owners should speak with a knowledgeable franchise attorney and consider whether ..read more

Embarking on a journey as a franchisee entails accepting numerous responsibilities essential for the operation and success of your franchise. The franchise agreement will outline what duties you have. Understanding these duties before signing the franchise agreement is crucial to effectively managing your business and maintaining a strong relationship with the franchisor. Following are the primary duties of a franchisee. Upholding the brand’s standards As a franchisee, you must commit to maintaining the brand standards established by the franchisor. This includes following the business model a ..read more

The idea of owning a franchise can be an appealing path to business ownership, offering you the opportunity to work within a proven system and capitalize on an established brand name. However, this venture also comes with its own unique set of risks, responsibilities, questions, and challenges.  We previously posted about 5 things to consider before buying a franchise. If you are considering buying a franchise, you likely have questions about the process, what it involves and what you can expect. Here are the answers to some common questions people often ask when they are thinking about m ..read more

Purchasing a franchise can be an attractive option for entrepreneurs in Rhode Island and around the world. Naturally, potential franchisees often have questions about the process. Here are the answers to five of the most common questions regarding buying a franchise in Rhode Island. 1. What are the benefits of buying a franchise? Buying a franchise comes with many benefits. Franchisees get access to a proven business model, ongoing support from the franchisor and an established brand. These factors can help reduce the risks commonly associated with starting a business from scratch. 2. What sho ..read more

Even though you have always dreamed of being a business owner, starting your own venture seems out of reach. Depending on your interests and skills, tapping into the success of an existing franchise might be the solution. After all, according to the U.S. Census Bureau, franchises exist in more than 300 different industries. If you do not want to be in business by yourself, you might consider becoming a partner in an existing franchised venture. Here are some suggestions for doing so. Research the partnership Business partnerships can be somewhat like families, so you should try to get to know ..read more