FAQ

What are the advantages of investing in a franchise vs. establishing a business from inception?

1. Creating an established trademark/brand typically takes years to become profitable – when you buy a franchise, you are buying a brand that has already been tested and customer approved
2. Developing streamlined operations typically takes years to perfect – when you buy a franchise, you are buying a system that has been perfected, allowing you to focus on execution from day one
3. Making mistakes during the start-up phase is expected, but can also be costly – when you buy a franchise, you are bypassing expensive mistakes at the business planning, marketing, sourcing, and expanding phases of the business

What are some advantages of using a broker as opposed to working directly with the franchisor?

There are approximately 4000 franchise concepts from which to choose in the United States. A sample of some of the benefits of working with an experienced franchise broker include:

Broker’s knowledge of many concepts and the differences between and among them – this significantly reduces the time it takes you to research and decide upon a franchise concept
Access to data points that are not publicly available – we share these data points to help you make a more informed investment decision
Ability to negotiate better territories – our knowledge of past deals across many concepts helps us advocate for you because we know what can and cannot be negotiated

How long does the process from researching the franchise to operating the concept take?

This is highly dependent upon the franchise that you choose to buy. For example, if you buy more of a turnkey operation, it make take two months to research, buy, and begin operations. On the other hand, for those franchise concepts that help find and vet the optimal location for your business, it may take ten to twelve months for them to select the optimal location and build-out the infrastructure according to specifications.

Do I need previous experience in the industry/field in which I’m buying a franchise?

Typically, no. Many franchisors make a concerted effort to look for partners who have a track record of managing employees and possess general knowledge of what it takes to operate a business. Most concepts have robust training programs to teach owners how to successfully operate the concept. In many cases, franchisors offer additional training for owners, upon request.

Are there opportunities to purchase multiple franchise units?

Yes. In fact, many franchisors are looking to partner with area developers. According to a recent study, multi-unit operators control 54% of all franchises, and of those, approximately 52% of them own two units.

What are the most common funding options available?

Funding options vary widely. Nearly 60% of recent franchise owners have used equity from their 401K accounts to fund the franchise because there are no repayment terms associated with using the funds. However, there are still many who borrow from their 401K accounts, use cash, or use more traditional borrowing options to fund their business.

Your funding options are unique to your situation. There is no one size fits all approach.

We encourage you to contact us if you have any questions/concerns about funding your franchise.

What industries do you specialize in?

We specialize in all franchise industries/sectors. We understand the underlying economics of franchise concepts and the types of buyers that will be most successful operating them.

In which states are you certified to broker franchise deals?

We broker franchise deals in all 50 states and in international territories. There are compliance requirements that apply to certain states, in which case they are more stringent than those imposed by the Federal Trade Commission. We are well-versed in these differences and work to ensure that your rights are protected when researching and/or purchasing a franchise concept.

What is the cost of your services?

Our services are free of cost to potential franchise buyers in the United States. We are paid by whichever franchise concept you choose to own. Because It is against federal regulations for any franchisor to increase the franchise fees on account of your using broker services, we encourage all franchise buyers to work with a broker to ensure that your interests are represented.

There are separate fees for international candidates interested in purchasing franchises through the E2 and EB5 visa programs.

What services do you provide to international buyers?

1. Matching international buyers with United States franchise concepts in an international territory – the availability of these franchises is dependent upon the goals of the franchisor.

2. Matching international buyers with United States franchises in the United States – there are two visa programs for international citizens from specific countries that allows buyers to live and work in the United States so long as certain investment levels and employee headcounts are reached. Our brokers are Certified Immigration Specialists and have extensive experience with E-2 and EB-5 candidates.