Frequently Asked Questions
Q: Would I make a successful franchisee?
A: Am I passionate about owning my own business? Am I willing and able to follow a proven system? Do I have a strong work ethic and a drive to succeed? Am I willing to always run my restaurants in near-new condition, and hire a team that is vested in 100% Franchising is not for everyone. It takes a unique mix of business acumen, motivation, capital, and a commitment to succeed. $$$$$
Q: What is Fransmart’s role in the franchise sales process?
A: Fransmart is the exclusive franchise developer for all our portfolio brands. If you are interested in exploring a franchise opportunity with one of our portfolio brands, Fransmart will be your primary point of contact throughout the Discovery Process. We partner with our brands to streamline the qualification of franchise candidates, and we facilitate your introductions to the franchisor management team at Discovery Day meetings. Our franchise development team is comprised of experienced business professionals, providing information and guidance throughout your Discovery Process.
Q: What questions should I consider when evaluating a specific franchise?
Among the points Fransmart recommends franchise candidates evaluate are:
- Why am I doing this?
- A trading area can only be sold to one person. Why should you be awarded this territory over someone else?
- What experience is required to join the franchise system?
- A complete understanding of the business
- Meeting franchisor management team – who will I be working with?
- Talk to other franchisees in the system
- Understand the financial committment
- Thorough review of the Franchise Disclosure Document
Q: What kind of investment is necessary to buy a franchise?
A: Each franchise will have a different set of financial requirements necessary for qualification. Each franchise applicant must be qualified for entry into a franchise system by demonstrating they possess the necessary working capital. Total net worth and liquid assets are the two primary financial criteria Fransmart will review. For full financial requirements and fees, always refer to the Franchise Disclosure Document. If you are building a multi-unit business, beyond the hard-costs of each location, you must have adequate working capital for soft-costs associated with your multi-unit business, including hiring the right people, executing your business plan, and properly training your team.
Q: What are some of the benefits of owning a franchise?
A: Most business experts agree that franchises have a higher likelihood of success than independent businesses, because a proven business model is already in place, and has been tried and tested. Franchises also offer additional benefits like group purchasing power, brand recognition, and franchisee support. Franchisee support is the critical component of successful franchising. Franchise brands provide initial business start-up assistance ranging from strategic guidance, to real estate selection and negotiation, to access to suppliers and equipment programs, to ongoing training and marketing support. The franchise model works, because franchisors are only as successful as their franchisees. Thus, franchise companies provide extensive support to their franchisees to help them succeed.
Q: What are some of the drawbacks to owning a franchise?
A: Franchisors require franchisees to follow their standard operating policies and procedures, in order to maintain brand consistency across the chain. This can be a challenge for independent-thinker types who like to create their own systems. Franchisees must be willing to follow a system in order to maintain the level of service and brand standards already established. Franchisors will expect you to meet operational excellence standards; you will be routinely monitored and evaluated by **** secret shoppers. Most franchisors also charge ongoing royalties, in exchange for providing ongoing support, services and marketing for their franchisees. As with any business, owing a franchise also carries a risk of failure.
Q: What is a Master Franchise?
A: Master franchisees typically purchase the rights from a corporate franchisor to develop and own an exclusive franchise territory (usually a major market or region). They then sell portions of this territory to their own new franchisees. In this model, a master franchisee functions as a ‘sub-franchisor,’ splitting the roles and responsibilities (as well as franchise fees and ongoing royalties) with the corporate franchisor. Master Franchising is the primary “wealth-building” model available in the franchise industry today.
Q: What is the process for becoming a franchisee?
A: Step 1: Initial Inquiry
- Submit basic contact information
- Initial telephone contact
- Submit in-depth franchise application
Step 2: Qualification
- Initial conversations to review qualifications based on business experience and financial strength
- Completion of state and federal compliance requirements
Step 3: Discovery Day Meeting
- Headquarter Discovery Day: tour restaurants, meet Franchisor team, learn more about opportunity
Step 4: Legal
- Discuss deal terms and review legal documents
- Formalize and execute the Franchise Agreement; Payment of franchise fees
Step 5: Welcome & Store Opening
- Real Estate
- New franchisee / staff training
- Marketing / Grand Opening