Franchise Business Ownership Guide
Insights Into Owning A Franchise Business
Franchise businesses offer emerging entrepreneurs the opportunity to own their own businesses, with added support and benefits that striking out on their own does not.
What Is A Franchise Business?
At its most basic, a franchise business is an operation where the services or products have been tested regionally, nationally, and even around the world – marketing, selling, in-house operations, etc. – have been streamlined to offer potential franchise owners the most “turn key” business opportunity available. However, there is much more that comes with buying a franchise than a turn key business.
Types Of Franchises
The franchise model has changed a lot over the years and there are many types of franchise business opportunities. Franchise businesses are no longer just about burgers and fries. In fact, franchises are in almost every industry – from cleaning to hospitality, healthcare, fitness, daycare, pet care, automotive, and everything in between. If there is something you enjoy, or have a talent for, there is a franchise out there that caters to your interests. After you decide on a franchise, the next thing to do is figure out a budget.
Buying A Franchise
Buying a franchise can be done through multiple channels. The most popular one is to apply directly to the parent corporation. The franchisor will then assess your credit history, financials, and if you have ever had experience running your own business. The franchisor will then ask for an initial investment to cover training, marketing materials, equipment, construction (if necessary) and anything else they need to provide. The other option is to purchase an existing franchise from an owner who is looking to change career paths or retire. The franchisor will still need to be brought into the arrangement – because franchisors do not want one of their operations to get sold to someone who will not keep it running successfully. Franchisors will also see to it that the transition from one franchise owner to another goes smoothly so that customer traffic and sales don’t miss a beat.
There are many franchise costs to consider when investing in a franchise. To own a franchise means paying a monthly or yearly fee to the parent corporation. This pays for branding, marketing materials, proprietary and software licenses, plus it pays for access to the franchisor’s support network. The support network is a key element in any franchise operation, because it helps to resolve problems such as an unexpected need for supplies or labor, troubleshooting in case any point of sale systems go down, or help resolving any HR problems. Most franchise owners consider the recurring fee to be negligible compared to the revenue brought in by a successful operation.
Financing A Franchise
There are franchises that have a buy-in price of only a few hundred dollars. Other franchises, such as restaurants, hotels, and resorts, can cost hundreds of thousands of dollars – which is something most people do not have on hand. Some franchises offer their own financing options, and others leave it to the owners to seek out their own funding sources. For some franchise owners with strong credit scores, healthy financials, and a history of running successful businesses, taking out a bank loan might be a viable solution. For new franchise owners, however, bank loans may not an option that’s readily available. Commercial financing programs such as mezzanine financing, asset-based lending, equipment financing, and much more can help make buying and furnishing a franchise much easier than paying out of pocket or going into debt by taking out bank loans.
There comes a time in every franchise owner’s career when they need to retire. Luckily, franchisors have built-in exit strategies available to franchise business owners, so that they can sell off their operation for a profit, and enjoy the money they have made. Many franchise owners like to keep the business within a close circle, and selling a franchise to a family member is a very common occurrence – usually because the relative buying the franchise is familiar with the company, how things are run, and they will ensure a smooth transition.
Start A Finance Business Opportunity
For those looking for a turn key business that offers low overhead, a support network, training, and unlimited earning potential, the Commercial Capital Training Group (CCTG) may be the perfect opportunity.
CCTG offers emerging entrepreneurs the opportunity to take on a career in commercial finance. CCTG gives people the training in commercial finance they need, along with the tools and support network so they can meet with people in need of extra working capital and put them in touch with lenders to come to an agreement. Once that agreement is made, you will get a percentage of that deal, plus any recurring fees that are built into the contract. Graduates of our training program operate their own businesses, and many see as much as six figure incomes.
The Commercial Capital Training Group gives graduates what they need to be financially independent, without any of the extra costs for training other employees, branding, advertising, or construction. We will give you the training, a business you can run from your home on your own time, and the ability to generate more revenue from a single deal than most franchise owners see in a year.
If you are looking at franchises for the streamlined, turn key qualities, but want something you can call your very own, the Commercial Capital Training Group is the best opportunity around.