Starting a Business: Lesson 1
What Is A Franchise?
Jania Bailey, the CEO of FranNet, will be explaining what a franchise is.
Topics:
- What is a Franchise?
- In Exchange
- What does a Franchise do?
Test Your Knowledge
To receive credit for taking this course through TSBDC, watch the video and take the quiz that will appear below to demonstrate your knowledge.
Video Lesson Topics
- 0:18
- What is a Franchise?
A franchise is a license to use the name and trademarks of a company. You can also use their business systems already established.
- 0:28
- In Exchange
In exchange for the benefits of a franchise, you will pay an upfront initial franchise fee which on average is from $35,000-$45,000. You will also have to pay ongoing royalties for the proven system and ongoing support that you receive. Royalties are calculated from the gross income you earn from the business, typically, paid on a monthly basis. The royalties on average are between 6-8%.
- 1:29
- What does a Franchise do?
A franchise is the creation of a distribution channel to help a brand establish market dominance, quickly. As a business owner who is succeeding, you have two choices for creating more business. You can either open more companies on your own, which takes capital and time, or you can franchise your business. If you choose to franchise, you give someone else the permission to use your company name, model, and tools with their initial fee. This means, you the business owner, is not out all that capital, your franchisee is doing that.
Topics & Lessons
Each Below Topic Contains a Video Lesson and Helpful Downloadable Information
What Is A Franchise?
The FDD & Your Due Diligence
Franchising Myths
Why Own A Franchise?
Want to learn more about how this topic relates to your business?
Schedule a meeting with one of our consultants! All counseling sessions offered by the TSBDC are no-cost and provided by our staff of professional business consultants.
