Big Questions You Need Answered Before You Invest in a Franchise
Are you thinking of investing in a home improvement franchise? If so, there are a number of important things you should learn before you make any final decisions. Floor Coverings International has been in the franchising business for years, and we understand the process thoroughly. Based on our experience, these are a few of the most important questions you should ask your potential franchisor.
What Does My Initial Investment Include?
Many franchisors can give you an estimate of what your initial investment will be. However, it’s important to know not only how much you will spend, but what your investment will entail. Ask your potential franchisor to provide you with a detailed investment breakdown so you can see where your money will be going. Also, be sure to review the breakdown carefully and ask about any items that aren’t included. For your convenience, Floor Coverings International has published an investment breakdown on our website.
What Supports Will I Receive When I Invest in a Home Improvement Franchise?
Most franchisors will promise to provide you with training and support. However, their definitions of training and support can vary wildly. Before you invest in a home improvement franchise, make sure you understand the specific resources you’ll have access to. One of the major benefits of opting to franchise rather than starting a business from scratch is the guidance of a well-established brand. Make sure you choose a franchisor like Floor Coverings International that goes above and beyond when it comes to supporting you as you grow your new business.
What Fees and Royalties Should I Expect to Pay?
In exchange for the training and support you’ll receive, franchisors usually charge a franchise fee along with ongoing fees and/or royalties. These fees can vary depending on many factors, including the level of support a franchisee is entitled to. Oftentimes, royalties are a percentage of the profits franchisees earn. Make sure you have a clear understanding of what you’ll be expected to pay and when so you’re not surprised once your business is up and running.
Where Can I Find the Franchise Disclosure Document?
Perhaps the most important document in the franchise experience is the franchise disclosure document (FDD). The FDD lays out everything you need to know about franchising with a company. Any ongoing litigation will be noted there, as well as the historical performance of their other franchises. All of the topics listed above will be covered in the FDD, too. A dense legal document, it can take some time to get through – which is why franchisors are required by law to give you sufficient time to review it before asking you to sign any franchise agreements. If you’ve done some cursory research and you’re interested in investing in a home improvement franchise, the next step is to reach out to the company and request a copy of the FDD.
Deciding to invest in a home improvement franchise is a great way to start a new career. Floor Coverings International has developed a comprehensive website that addresses many of the questions listed above – check it out today!