Consultation Process

• How can this be a free service?

  Our services are completely free to consumers.  We are paid fees by franchise companies because they appreciate the education, qualifying and pre-screening that we provide our clients. The price of the franchise to you is exactly the same, whether you use this service or not.  Franchise companies cannot, by law, surcharge you when you use a consultant nor can they offer you a discount when you don't. The consulting process that we follow with our clients creates a solid match between the various franchise companies that we recommend – and our clients. Because of this, the franchise companies want to talk to our clients. You will be afforded priority status with them.

• Why should I use a FranNet Consultant?

  We believe that you should use a FranNet Consultant because it allows you to get a series of choices, and services all in one place.

  We help you by giving you assorted research and information that will help you investigate different franchises. We also can help you find other professionals, including franchise attorneys, financial institutions, and business advisors.

  We can help introduce you to many different franchisers, so that rather having to go from place to place to learn about specific businesses, you can learn the basics about several all in one spot!.

  Perhaps, most importantly, FranNet consultants have no special reason for wanting you to buy one business as opposed to another. As such, we can give you advice that you can use and apply to each and every business that you look at.

  We help you to create a personal business model that includes not just those things that you are looking for in a business, but also how they will be factored into your life, and your lifestyle.

  This means that when you start to research different franchisers, you will have uniform criteria to measure each business opportunity against.

• How does the research process work?

  The research is a five-step plan consisting of reading the Uniform Franchise Offering Circular, talking to the franchisor, talking to franchisees, visiting franchisees, visiting franchisors, and consulting with professional advisors (franchise attorney and an accountant). After each step you will need to ask yourself what your level of interest is.
  

• Why do I need to complete the confidential questionnaire?

  By filling out the questionnaire, you are giving us the information that we need to start the process of finding those franchises that might fit you. With several thousand franchises to choose from, you have to start somewhere. We have pre-approved about 80 franchisors in as many as six different categories. By using the questionnaire before we meet, we can eliminate a number of businesses that don't fit.
  

• Will my information be shared with anyone else?

  Yes. If we successfully find businesses that are of interest to you then, with your permission, we will forward the information that we have already gathered. However we do not sell your name and information to anyone.
  

• Am I under any obligation?

  No. The only obligation that you will have is to do what you say you are going to do and keep any appointments that you may schedule.
  

• How long will the process take?

  Usually the process to make a decision on a franchise only takes about 30 to 60 days depending on how fast you want to go through the process.
  
  After our consultation, our job is to keep you on track so that you can gain enough information to make an informed decision.
  

• What's the next step?

  The next step is to fill out the Confidential Questionnaire and schedule a private consultation.
  

Franchising

• What is Franchising?

  A franchise is a legal and commercial relationship between the owner of a trademark, service mark, trade name or advertising symbol and an individual or group seeking the right to use that Identification in a business. The franchise agreement governs the method for conducting business between the two parties. Although forms of franchising have been in use since the Civil War, enormous growth has occurred more recently. Industries that rely on franchised businesses to distribute their products and services touch every aspect of life, from automobile sales and real estate to fast foods and tax preparation.

  In its simplest form, a franchiser owns the right to a name or trademark and sells that right to a franchisee. This is known as product/trade name franchising. In the more complex form, known as business format franchising, a broader and ongoing relationship exists between the two parties. Business format franchises often provide a full range of services, including.

  Site selection.
  Training.
  Product supply.
  Marketing plans.
  Financing.

  Generally, a franchisee sells goods or services that are supplied by the franchiser or that meet the franchiser's quality standards.

• What are some of the benefits and responsibilities of Franchise ownership?

  There are a number of aspects to the franchising method that appeal to prospective business owners. For example, easy access to an established product and a proven method of operating a business reduces the many risks of opening a business. In fact, U.S. Small Business Administration and U.S. Department of Commerce statistics show a significantly lower failure rate for franchised businesses than for other business start-ups. The franchisee purchases not only a trademark, but also the experience and expertise of the franchiser's organization. However, a franchise does not ensure easy success. If you are not prepared for the total commitment of time, energy and financial resources that any business requires, you should stop and reconsider your decision to enter the franchise business.

  A franchise typically enables you, the investor or "franchisee," to operate a business. By paying a franchise fee, which may cost several thousand dollars, you are given a format or system developed by the company ("franchisor"), the right to use the franchisor's name for a limited time, and assistance. For example, the franchisor may help you find a location for your outlet; provide initial training and an operating manual; and advise you on management, marketing, or personnel. Some franchisors offer ongoing support such as monthly newsletters, a toll free 800-telephone number for technical assistance, and periodic workshops or seminars.

• What factors should I consider when selecting a Franchise?

  Like any other investment, purchasing a franchise is a risk. When selecting a franchise, carefully consider a number of factors, such as the demand for the products or services, likely competition, the franchisor's background, and the level of support you will receive.

  Demand
  Is there a demand for the franchisor's products or services in your community? Is the demand seasonal? For example, lawn and garden care or swimming pool maintenance may be profitable only in the spring or summer. Is there likely to be a continuing demand for the products or services in the future? Is the demand likely to be temporary, such as selling a fad food item? Does the product or service generate repeat business?

  Competition
  What is the level of competition, nationally and in your community? How many franchised and company-owned outlets does the franchisor have in your area? How many competing companies sell the same or similar products or services? Are these competing companies well established, with wide name recognition in your community? Do they offer the same goods and services at the same or lower price?

  Your Ability to Operate the Business
  Sometimes, franchise systems fail. Will you be able to operate your outlet even if the franchisor goes out of business? Will you need the franchisor's ongoing training, advertising, or other assistance to succeed? Will you have access to the same or other suppliers? Could you conduct the business alone if you must lay off personnel to cut costs?

  Name Recognition
  A primary reason for purchasing a franchise is the right to associate with the company's name. The more widely recognized the name, the more likely it will draw customers who know its products or services. Therefore, before purchasing a franchise, consider:

  
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• How can I find a lawyer who specializes in Franchising?

  Entrepreneurs in search of a franchise lawyer can start by checking with your state bar association. Many state bar associations allow member lawyers to identify the areas of practice in which they specialize, and franchise or distribution law is a recognized specialty in an increasing number of states.

  The American Bar Association also publishes a Membership Directory of the Forum Committee on Franchising. The Directory, which is organized by state and city, lists the names, addresses and telephone numbers of attorneys who are members of the Forum Committee. You can obtain a copy of the Directory from:

  American Bar Association Service Center
  750 North Lake Shore Dr.
  Chicago, IL 60611
  (312) 988-5522

• What is the disclosure document?

  The Federal Trade Commission (FTC) requires sellers of franchises and other business opportunity ventures to provide prospective investors with the information they need to make an informed investment decision. It also requires that all earnings claims be documented, that the information investors receive be complete and accurate and that investors have adequate time to consider and evaluate the disclosures before making any final purchase commitment. All required information is given to prospective investors in the form of a franchise disclosure document, which must be furnished at least 10 business days before any purchase may occur. This document includes 20 important items of information, such as...

  Names, addresses and telephone numbers of other franchisees.
  A fully audited financial statement of the seller.
  The cost required starting and maintaining the business.
  The responsibilities you and the seller will share once you buy a franchise.
  Litigation involving the company or its officers, if any.
  Again, use your professional support to examine all of these issues. Some of the contract terms may be negotiable. Find out before you sign; otherwise, it will be too late.
• How can I evaluate my potential to become a successful Franchisee?

  Perhaps your most important step in evaluating a franchise opportunity is examining your own skills, abilities and experience. The ideal franchisee is a creative, outgoing person who is eager to succeed, but not so independent that he or she resents other people's advice. You must be able to balance your entrepreneurial initiative with a willingness to comply with the business formulas used by the franchiser. Remember, a successful partnership between a franchisee and franchiser involves a mutual understanding of each other's values and achievements.

  Determine exactly what you want out of life and what you are willing to sacrifice to achieve your goals. Be honest, rigorous and specific. Ask yourself: Am I qualified for this field...

  Physically?
  By experience?
  By education?
  By learning capacity?
  Financially?

  Ask yourself how this decision will affect your family. Do they understand the risks and sacrifices required, and will they support your efforts? Beginning a franchise business is a major decision that does not ensure easy success. However, an informed commitment of time, energy and money by you and your family can lead to an exciting and profitable venture.

• How can I prepare prior to shopping at a Franchise exposition?

  Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons that are interested in selling a franchise that you are not interested in.

  Before you attend, research what type of franchise best suits your investment limitations, experience, and goals. When you attend, comparison shop for the opportunity that best suits your needs and ask questions.

  Know how much you can invest
  An exhibitor may tell you how much you can afford to invest or that you can't afford to pass up this opportunity. Before beginning to explore investment options, consider the amount you feel comfortable investing and the maximum amount you can afford.

  Know What Type of Business is Right for You
  An exhibitor may attempt to convince you that an opportunity is perfect for you. Only you can make that determination. Consider the industry that interests you before selecting a specific franchise system. Ask yourself the following questions:

  Have you considered working in that industry before?
  Can you see yourself engaged in that line of work for the next twenty years?
  Do you have the necessary background or skills?
  If the industry does not appeal to you or you are not suited to work in that industry, do not allow an exhibitor to convince you otherwise. Spend your time focusing on those industries that offer a more realistic opportunity.

  Comparison Shop
  Visit several franchise exhibitors engaged in the type of industry that appeals to you. Listen to the exhibitors' presentations and discussions with other interested consumers. Get answers to the following questions: 

  
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• Are there additional sources of information?

  Before you invest in a franchise system, investigate the franchisor thoroughly. In addition to reading the company's disclosure document and speaking with current and former franchisees, you should speak with the following:

  Lawyer and Accountant
  Investing in a franchise is costly. An accountant can help you understand the company's financial statements, develop a business plan, and assess any earnings projections and the assumptions upon which they are based. An accountant can help you pick a franchise system that is best suited to your investment resources and your goals.

  Franchise contracts are usually long and complex. A contract problem that arises after you have signed the contract may be impossible or very expensive to fix. A lawyer will help you to understand your obligations under the contract, so you will not be surprised later. Choose a lawyer who is experienced in franchise matters. It is best to rely upon your own lawyer or accountant, rather than those of the franchisor.

  Banks and Other Financial Institutions
  These organizations may provide an unbiased view of the franchise opportunity you are considering. Your banker should be able to get a Dun and Bradstreet report or similar reports on the franchisor.

  Better Business Bureau
  Check with the local Better Business Bureau (BBB) in the cities where the franchisor has its headquarters. Ask if any consumers have complained about the company's products, services, or personnel.

  Government Departments
  Several states regulate the sale of franchises. Check with your state Division of Securities or Office of Attorney General for more information about your rights as a franchise owner in your state.

  Federal Trade Commission (FTC)
  The FTC publishes information that may be of interest to you, including business guides - www.ftc.gov.

The Franchise Network (FranNet)

• Who is FranNet?

  FranNet is the world's largest network of franchise consultants. We provide a broad array of services that include help in turning a company into a franchise, and helping a prospective franchisee learn about the many choices that franchising offers to him or herself. Each of our over 50 offices is individually owned and operated. For information on your local office, check out our office locations.

• What is a FranNet Consultant?

  A FranNet consultant is an independent consultant. Many of the consultants who are part of the Franchise Network Group have broad experience in the Franchise industry. Within our group we have past or present franchisers, franchise executives, franchisees, regional and area developers, and other business professionals.

• Does it cost more to work with FranNet?

  The answer is absolutely NO! We get paid, if and only if, you find a franchise that you buy. We are paid a portion of the fees you would pay anyway, irrespective of whether you go to the franchisor directly, or are introduced to them by us.

  Since we get paid a portion of the franchise fee, and since most franchise fees fall within a very narrow range we have no reason to suggest that you buy a more expensive franchise, or any franchise in particular!

• How will FranNet help me save money?

  FranNet helps you to save money in several ways: You can learn about franchising, researching your business, identifying the right structure and strategic mix of the businesses you are looking, and introducing you to the franchisers that fit your model. Instead of going from place to place, you can get all this information in one place. This saves you both time and money.

  We'll encourage you to do thorough first person research on any franchise that you are investigating, and we'll even help you find a choice of franchise attorneys and other advisors to consult with before you buy.

  Since we believe that the more you know, the better are the odds that the choice you make will be a good one, we stress spending time to do research before you buy. Once you've bought the business, it's too late to change your mind.

• How will FranNet help me buy a Franchise?

  FranNet will help you to buy your business by providing a series of services to you. It's important to remember that the decision will always be yours, so the responsibility for making a good one rests with you. Our biggest value is that we help you to discover choices, and to make sure that the choices match up with the unique strategy, goals, and needs that you personally possess.

  So, we try to help set up ground rules that you can use when you look at any business. We help you to build your personal model of an ideal business. We take into consideration all the things that you feel are important to you.

  We start by providing you with a packet of literature and suggesting you come to one of our free educational seminars, where additional information may also be available. We give these seminars regularly in local communities, often in association with other interested groups, like the United States Small Business Administration, SCORE (Service Corps. of Retired Executives), Small Business Development Centers (SBDC's), financial institutions, lawyers, and financial advisors.

  These seminars give an overview of franchising. The information at these seminars includes such items as: Understanding the basics of franchise regulations, and what is a Uniform Franchise Offering Circular (UFOC),what types of franchises are there and how much do franchises cost? We also talk about how you can identify the types of franchises that best suit your needs and goals.

  Next, we ask you to fill out one of our confidential Questionnaires. This information tells us a lot about you, including how you see yourself, and what your investment criteria may be. It's important to remember that the amount of your investment does not necessarily correspond with the quality of the business you buy, but we need to know your own investment ability and comfort level.

  After you have returned the questionnaire to us, your local or most convenient FranNet office will schedule a personal meeting with you. If that is not possible we will schedule a telephone meeting with you. Meetings last 1 1/2 hours, - 3 hours and are spent understanding your own personal goals, skills, personality, strategies, ambitions, hopes and dreams. We then will introduce you to several franchises that meet your structure and strategy, and suggest that you contact these franchisers directly.

  We forward your information questionnaire, and an overview of our meeting to each franchisor, and arrange for you to have an initial conversation. We provide you with many research tips, including some sample questions to ask other franchisees, a four step research plan, information on how to avoid outside ambushes, and other helpful hints.

  After you are in the personal research stage with your franchisers, we stay in touch with you to see if you feel you are headed in the right direction, and to make sure that you are satisfied that the franchisers you are talking to meet your personal criteria.

  We encourage you to do extensive research, and urge you not to settle if you are not sure that what you are looking at is the right business for you. There are simply too many choices to have to buy one that you are not satisfied with, no matter what your risk tolerance and personal strategy is.

  If you have not found a proper fit in the first group of franchises that you look at, we factor in any additional criteria that you may have, further refine your personal model, and invite you to come back into the office.

  We can also help you find choices of franchise attorneys, financing choices, and other assistance that you may want or need. We will give you a list of each type of professional, and suggest that you interview them to find one that you like, and feel comfortable with.

• Why can't I just deal directly with the franchise company of my choice?

  The answer is that you can. You are free to do whatever you think makes the most sense to you. Our service is one that allows you to learn about many different business, without having to go from place to place.

  More importantly, most people don't know the choices that exist in franchising, and tend to make decisions without sufficient knowledge. We can help you understand your choices, and how to investigate them more thoroughly, and more intelligently.

  Remember, there's no cost to you for our services, so perhaps the better question might be, Why would you want to go directly to any specific franchisor until you have learned about the choices that exist for you?

International

Franchise

Association (IFA)

Supplier Forum

Member