Introduction: Some of the oldest and
best organizations on a National and International scope are Franchises:
Marriott Hotels, Shell Oil Distributors (as with all oil distribution
parts of companies), McDonalds, Hilton Hotels, Warren Buffett’s
company Berkshire-Hathaway, Inc. owns Dairy Queen, ServiceMaster,
and the list goes on.
Not all franchises and franchisors are the same.
Not all franchises are right for everyone. We are fortunate to
have a Partner on The CDI Group Team with years of experience as
a Franchisor, and a person who has financed a Franchisee, on both
a National and International scope.
As an introduction to Franchising,
we have listed a few of the most common questions we are asked
about Franchising. After you have looked at our Questions and Answers,
and if you are interested in the possibility of becoming a Franchisee
or a Franchisor, feel free to contact us.
Questions and Comments About Franchising
Why would I want to buy a franchise?
Franchises have the highest success rates and the lowest failure
rates of any business in North America today! Over 95% of all
franchises are still in business after five years because most
come with built-in proven success formulas used by franchisees
across the country. As you explore different Franchisors, you will
find that different Franchisors provide you with varying degrees
of on-going support for the life of the franchise. By support,
we mean, marketing, training and management support guaranteed
by your agreement with the franchiser.
Why should I pay royalties?
Royalties are the magic that makes the formula work. What would
it cost you to hire a management, marketing, advertising and
customer support team? The answer is... a lot more than the
typical owner would ever spend! How much would you put back into
the business? You certainly couldn’t hire this group for
less than 10% and the vast majority of all royalties are between
5% - 15%. The up-side of royalties is that instead
of the individual owner footing the bill to secure certain support
services, the expense is shared with all
of the franchisees within the organization.
How much money can I make?
This is the most frequently asked question and franchising
allows the buyer the perfect way to get the answer. The franchiser
will supply to the prospect a complete list of their franchisees
with names and phone numbers. The Franchisor will strongly
recommend that you call
as many of these franchises as possible. This is wonderful
because it allows the buyer to ask all of the “real questions”,
such as: How much money can I make? How long did it take you to get
your business up and running? Were there any surprises that I need
to know about? What is the franchiser really like and any other questions
that you can think of. Some franchisers have printed earnings claims
in their UFOC documents but they will still insist that all
interested buyers call the franchises and get the “real answers".
you are interested in more information about becoming a Franchisee,
complete our Buyer Description. We will respond to your email.
If you are interested in becoming a Franchisor, complete our Seller
Description. We will respond to your email.
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