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Franchising: Frequently Asked Questions

At Franchise Creator we understand that cost is a major issue for most businesses. Our fees are GUARANTEED to be the lowest in the industry. You can hire us to do a small portion of the work or all of the work from the documentation to sales and marketing. You would only pay for what you hire us to do. You can hire us to do the minimum needed to begin selling franchises or to completely handle the entire process so that you can continue to concentrate on running your business, as you do now. Either way, we do everything in-house and we GUARANTEE you that our fees are less than any other firm in the industry.
It is conceivable that a franchise program could be set up in as little as a few weeks. We understand that time is of the essence. The sooner you can start to sell franchises, the sooner you can begin to profit from the initial and on-going franchise fees. The timing varies for each case, depending on the complexity of your business and our schedule. Contact us today for more details on the timings.
You start by contacting us. We do a complete study of your industry and compare your business to your competitors (if any) and determine how you should proceed with franchising your business, ALL AT NO COST TO YOU! Once you hire our services, we will work for you and won't stop until you are completely satisfied with the outcome. We deliver everything you need in order to start selling your first franchise. You don't need to read any manuals or take any classes. We provide you with all the knowledge you need in order for you to succeed in launching and running your new franchised operation. It is one of the most amazing feelings to see your idea and your business grow to tens and hundreds of locations in a relatively short period of time.
In order to franchise your business, you must at least apply for a federal trademark for your business name or logo through the US Patent and Trademark Office.
We don't expect you to determine any of the up-front or on-going fees that you should charge for your concept. We will do a complete study of your business and based on many factors, suggest what you should be charging for Initial Franchise Fee, on-going royalty, national as well as local advertising fees.
Once you have franchised your business, you can generate income from your new franchisees in many different ways: 1. Franchise Fee - This is a fee that you collect up-front. This fee is intended to reimburse you for the knowledge, know-how and the training. You are getting paid for your knowledge. 2. On-Going Royalties - Franchisees pay you a percentage of their revenue or a fixed monthly fee for utilizing your trademark, your business name, your support and guidance and the overall system. 3. Product purchases - Depending on the nature of your business, you may require your new franchisees to purchase all of their necessary on-going supplies from you. 4. There are many other ways you can make money utilizing the power of franchising. We will discuss the details during our free consultation.
Franchising has been used in so many different industries that it is hard to imagine that any business can't be franchised. Generally, your business might be ripe for franchising if: (a) you have a successful business, (b) you have established processes and methods that enable the success to be duplicated, and (C) the income stream from the franchise system is likely to be greater than the costs of running the franchise system. Contact Franchise Creator and let us evaluate the franchisability of your business at no cost.
Franchise Creator is a complete franchise consulting firm that specializes in turning businesses like yours into a franchise, ready for expansion. We provide a complete solution for businesses like yours that want to expand, but don't want to lose sight of their day to day operation of their current business. By hiring Franchise Creator's services, you can continue to operate your business while we franchise your operation and provide you with a way to obtain new franchisees that are growing your business into multiple locations while providing you with upfront as well as on-going cash. Franchise Creator is led by Mr. Hossein Kasmai, a franchise industry veteran with many years of experience in franchising many concepts including many of his own that have grown to hundreds of locations both nationally and internationally in a very short time. Mr. Kasmai and his franchise concepts have been featured in multiple articles in various publications. At franchise creator we don't outsource your work and we do not use third party services to franchise your company. We accept only a few clients each year and all the work is done internally utilizing many years of our experience in this field. We are not only experienced in the field of franchising, we are also experienced in running franchise operations. We currently run our own franchise concepts also. When selecting a consulting firm to franchise your business, it is important to recognize that we are the only team with practical knowledge of establishing, running and growing franchised businesses. Wouldn't be good to know that our recommendations and suggestions are based on what we have experienced in running our own franchised businesses? Wouldn't you want to utilize our field experience to your own advantage? Franchise Creator also offers a complete list of services for existing franchisors. These services include franchise sales training, marketing, franchise lead generation, operations manual drafting or updates, franchise training manual drafting, franchise sales webinar presentation development, franchise training program updates and much more.
You should franchise your business because you are ready to grow your business and take your current business to the next level and you want to accomplish this using the most cost effective and widely endorsed method of expansion. Perhaps you have thought of expanding your business into new markets, but you do not want to invest any more of your own money. Perhaps you are not comfortable with operating a business in another city or state on your own with your own employees. Perhaps you have seen your employees learning your business, leaving you and becoming your competitors and you now realize that you want to charge for this knowledge. Franchising is simply the best solution that has transformed thousands of businesses from mom and pop operation into nationally recognized brands in a very short time. Let Franchise Creator help you identify if franchising is the best growth vehicle for you, at no cost!
A number of states in the U.S. require you to register your franchise with the state prior to any solicitation. Each state has key differences in their registration procedures. If your registration documents are improperly filed, you may be rejected or asked to have the franchise fee collected in that state deposited into an escrow account instead. Franchise Creator has an in depth understanding of each state's requirements and filing procedures. By attempting to file the registrations on your own, you might do much long term harm to the success of your franchise in those states.
Franchising typically works in both good and bad economies. Historically, during harder times when people lose their jobs, they immediately turn to entrepreneurial thoughts and begin to consider opening their own business. The perception of franchising to almost everyone is that it is safe and being safe makes it an attractive alternative.
Franchising is regulated by both the federal and state governments. Every prospective franchisee must receive a Franchise Disclosure Document, also known as the FDD from you before they can proceed. This is the main thing that separates a franchise from a business opportunity and why so many people trust franchises and choose to invest in them. The regulation that the government has put in place is there to protect the franchisee and to ensure that the system has a lower chance of failure which provides an added credibility to your model.
An operations manual is a detailed document provided by you to your franchisees before they start their business. This document provides your franchisees with complete instructions on the day to day operation guidelines of their business. This document include detailed information regarding policies and procedures in reference to accounting, human resources, sales and marketing, taxes, permits, and much more. It gives franchisees clear, detailed direction on how they should be running their business and ensures consistency from one franchise to another.
This is the legally binding contract between you and the franchisee. It fully describes all the rights and obligations of both parties. The Franchise Agreement sets the terms of the relationship with your franchise buyers, including royalties and fees, patents and copyrights, territory boundaries, contract terms and renewals, and much more.
Franchise Disclosure Document (FDD) has been in effect by the FTC since July 1, 2008. Prior to this date, this document was known as the UFOC. The document informs prospective franchisees of their rights and obligations prior to signing your franchise agreement. According to the Federal Trade Commission (FTC), an FDD should give prospective franchisees “the material information they need in order to weigh the risks and benefits” of investing in your franchise business opportunity. The FTC requires your FDD to address 23 specific items of information about your franchise.
In order to establish a franchise your business must have a Franchise Disclosure Document, Franchise Agreement and an Operations Manual. You franchise also needs to be registered in the states you are marketing your franchise and you must fully understand the legalities related to selling and marketing your franchise in various states.

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