The Franchise King®

The Franchise King’s Daily Franchise Tips

daily franchise tips

If you’re exploring opportunities in franchise ownership, I’ve put together some daily franchise tips for you. And I know you’ll like them.

Matter of fact, I post these tips Monday-Friday on LinkedIn.

And I’ve created a special hashtag you can use to see them anytime you want. #TFKDailyFranchiseTip

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In addition, I’ll be posting my (hopefully) helpful franchise buying tips on the page you’re on now.

Daily Franchise Tips

I encourage you to keep these franchise buying tips in mind as you explore the world of franchise business ownership. And remember, I’ll be adding to this list every week! Here they are:

In most cases, the upfront Franchise Fee you pay when buying a franchise isn’t a huge profit center for your franchisor. But the Royalties you’ll be paying every month are.

Don’t “invest” an amount of money in a franchise that will keep you up at night. This seems obvious, but when you’re excited about a franchise opportunity, it may be difficult to take a breath and slow down. So stick to your budget.

When you find a #franchise that interests you, request more information. It’s a big step-but it’s the first step. “If you spend too much time thinking about a thing, you’ll never get it done.”

Bruce Lee

Don’t forget: You can type in #TFKDailyFranchiseTip in LinkedIn anytime you want for more of my helpful tips!

Be nice to your (internal) franchise salesperson. Why? 1. It’s good to be nice. 2. Your salesperson may have a say when it comes time for you to be approved for a franchise.

A great question to ask franchisees (as part of your research), is this one: “Do you feel the executives at franchise headquarters are focused on your profitability as a franchisee?” They should be!

Have realistic expectations regarding income replacement. Specifically, you shouldn’t expect to replace your income quickly if you become a franchise owner. Long-term, potentially. But not short-term.

One of the biggest benefits of being a franchisee is you have complete access to an established business model that’s already been proven to be successful. Use it to make money.

When you’re researching franchise opportunities, using your favorite search engine, type in the name of the founder of the franchise you’re investigating. See if anything “interesting” comes up.

In most cases, the upfront Franchise Fee you pay when buying a franchise isn’t a huge profit center for your franchisor. But the Royalties you’ll be paying every month are.

Don’t hire an attorney too early in the franchise buying process. Instead, wait until you’re 90% sure you’re going to buy the franchise you’ve been looking into. And only hire a franchise attorney!

When you’re investigating new franchise concepts with a minute number of franchisees, you need to spend a lot of time with the founder. In some cases, it may be the only way to get a good feel of the business and its potential.

Remember that nothing worth doing is without risk. That includes becoming the owner of a franchise business. But you need to decide if you’re willing to take on some risk. If so, you also need to know that there ARE ways to lower your risk. One of them? Doing great research. Commit to doing that, and you’re halfway there.

Stick to your plan. For instance, if you’ve decided to focus your energy on #franchises that provide the best opportunity to use your top-shelf #sales skills, don’t waste time looking into #businesses where you can’t use them to maximum advantage, like retail. Focus.

Avoid franchisors that delay sending you their Franchise Disclosure Document (FDD). There’s ALWAYS a reason a company (in any industry) withholds information. Generally, this information isn’t something you’d want to learn about after you send them your money…but before.

Remember that not everybody gets along. For example, you may not care for your Franchise Development Representative. If that’s the case, call the main number at franchise HQ and see if someone else can be assigned to you. Of course, that’s only if you feel the franchise opportunity you’re looking into is a good one and a good fit for you. If it’s average, and/or it doesn’t seem to be what you want in a business, move on.

The Franchise Disclosure Document (FDD) is a document. It’s not the business. Read it, put it away, then talk to and visit the people who own the #business…the #franchisees. They’ll tell you the real story.
P.S. As long as you ask the right questions!

Before you sign your franchise agreement, you need to make sure all of your burning questions were answered. Especially the ones you asked your #Franchise Development Rep and others at HQ. If they have been, and you’re satisfied with their answers, you’ll feel more confident moving forward. If you still have unanswered questions, go back and get them answered.

Requesting information from franchise headquarters is a big step. But don’t overthink it. If you’re truly interested in the franchise opportunity, request information. It’s the best way to stop the self-talk…the guessing, about the franchise opportunity. About what it would entail to start the business and succeed. Okay? Because…
“If you spend too much time thinking about a thing, you’ll never get it done.” – Bruce Lee

As you look at franchises to own, you’re going to run across several multi-unit opportunities. Those opportunities are great for people who want to own more than one location in a specific geographic area.
And while there’s more of an #investment needed, know this: that investment happens on a specific timeline. For example, after you open your first unit, you may be expected to open your 2nd unit 18 months after that, and your 3rd unit 12 months after that. It just depends on how your agreement is worded. Finally, for a terrific example of a popular multi-unit #franchise opportunity, As you look at franchises to own, you’re going to run across several “multi-unit” opportunities. Those opportunities are great for people who want to own more than one location in a specific geographic area
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Don’t do it. Don’t sign a franchise contract (agreement) without paying an experienced franchise lawyer to go over it with you. Why? I’m not going to answer that

Take your time. Be methodical with your research on #franchise opportunities you’re interested in. It’s not a race. “I’ve learned that I can pretty much do anything I’ve wanted to as long as I was methodical and diligent about it. It may not sound very exciting really, but it works.”
– Jamie Hyneman, MythBusters

If you’re thinking about doing ‘this franchise thing’ with a partner, know this. Your relationship with this person will change. Especially after both of you sit down, read, and potentially sign your “Partnership Agreement,” which formalizes your relationship-and makes it legal. So think long and hard about doing it. That said, things may work out really well. Especially if you go in with realistic and fair expectations.

Don’t buy a burger franchise because you like burgers. Buy a burger franchise because the business makes sense for you, your area, and your personal and financial goals.

One of the biggest benefits of being a franchisee is you have complete access to an established business model that’s already been proven to be successful. Use it to make money

Talking about being your own boss, and writing a check-and/or taking out a small business loan to do so, are two very different things. So weigh this potentially life-changing decision carefully.

Don’t hire an attorney too early in the franchise buying process. Wait until you’re 90% sure you’re going to buy the franchise you’ve been looking into. And only hire a franchise attorney!

When you’re interested in a franchise opportunity that has an initial investment range of $175,000-$240,000, always use the higher number when you put together your projections. Why? Because doing so forces you to be more realistic with your numbers. And hey…if your upfront #investment turns out to be less, that’s great, as your break-even time may be shorter than you anticipated in your business plan. That means you’ll be profitable faster (in a perfect world).

Commit to being a lifelong learner. Start by learning all you can about franchising and small business. And if you become a franchise owner, be sure to take advantage of learning and training programs offered by the franchisor as well as outside organizations. You’ll be more successful doing so.

It’s easy to spend 2-3 hours a day searching for a franchise online. And after awhile, your search becomes less and less exciting. Less productive. The solution? Take a few days off. Don’t do ANY franchise-related searches. When that time is up, take a fresh look at what franchises you’ve found so far. You may find that this fresh perspective can help you narrow things down.

When you’re on the phone with franchisees-asking them questions about their business and THE business, ask them if they feel the franchisor is interested in franchisees making a lot of money. In other words, is headquarters focused on franchisee profitability and success? The good ones are.

Relax. Searching for a franchise that fits your budget, your wants and needs, along with the lifestyle you hope to have takes time. Don’t settle!

Take your time. Be methodical with your research on #franchise opportunities you’re interested in. It’s not a race. ‘I’ve learned that I can pretty much do anything I’ve wanted to as long as I was methodical and diligent about it. It may not sound very exciting really, but it works.

Jamie Hyneman, MythBusters.

As you look at franchises to own, you’re going to run across several multi-unit opportunities. Those opportunities are great for people who want to own more than one location in a specific geographic area.

Before you begin exploring franchise opportunities to own, put together a snapshot of your personal finances. Because understanding your financial position, including your assets and liabilities, will enable you to determine what franchises you can afford to buy before you start your search.

When you become a franchisee, it’s important to remember that you’re part of a franchise network. This network (of other franchisees) can be called upon for suggestions, ideas and more. As can the team at franchise headquarters. So ask for help when if you need it!

Ask franchisors about their technology, and how it helps franchisees. Get specifics. Then ask the franchisees how they feel about the #technology? How much does it help them run their businesses?

Don’t do it. Don’t sign a franchise contract (agreement) without paying an experienced franchise lawyer to go over it with you. Why? I’m not going to answer that.

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