Franchise Opportunities and Franchise Information

Important Franchise Information

Before deciding to start a franchise, there are a number of aspects that need to be taken into consideration.

It is recommended that you first research what owning a franchise involves before actually contacting the franchise company.
There are lots of hidden rules and regulations involved that it may not even be worth it in the first place. If you are determined in wanting to purchase a franchise of a company name then there are definitely some issues that must be cleared with the company before you sign into any sort of agreement.

Renewal Agreements

When signing into a contract with a company for a franchise one of the things you may be required to agree upon is exactly how long that contract will be and how long subsequent contracts will also be. Most companies require that a franchise owner sign a contract for at least 10-15 year agreement, but then make subsequent contracts half of the duration that the first one is signed for. You may also want to know what exactly will happen if you somehow breach the contract and bankrupt the franchise before the contract is up. It is better to ask questions now as you will be able to access the risk and damages if things go wrong. There may be hefty fines and fees involved, but getting all of the specifics in writing is the best route any franchise owner can take.

The Fees

The first question on your mind should be the start up fees and the costs involved. Most franchises require that a franchise owner pay an initial fee to be able use the company's name and reputation, but there are also some other fees that they must pay as well. For example, what is usually required is the franchise owners must pay a percentage of their profit to the company itself in return for being a franchise. Even though this percentage may only be 1-2%, it still could take a big chunk out of the profits. It is important to get the exact percentage or amount that has to be paid in writing, whether it’s a percentage of the gross or net profits, and whether or not any fees will be required the first year considering that many businesses do not even turn a profit until the second or third year.


One important issue with franchises and all company branches is the location of each one. The location of your franchise is one of the most important aspects. Many companies have stipulations that are set so that no company branch can be in the way, or in a physical location that is close to another of the same branch. This rule helps to avoid saturation of an area and it also promotes fair competition.

Although these few aspects are only a few important aspects there are other requirements that you must discuss with the company headquarters itself before deciding to start a franchise or sign the contracts. Securing your franchise is very important and making sure you know all the rules and regulations that are set by the franchise company.

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