Monday, 17 October 2011

Buying a Franchise

           This video is about buying a franchise. Three thousand companies are sold as U.S. franchises. A franchise is license given by a company to a person or group allowing them to market its services or products in a specific territory without all the risks of a typical start-up of a business. Some franchises shown on the video are Dunkin Donuts, Bojangles, and Gold Gym. Step one in purchasing a franchise is getting a copy of the FDD. The FDD is the Franchise Disclosure Document. The franchise fee is from ten thousand up to fifty thousand dollars. The start-up cost can be up to two hundred thousand dollars. Lenders rely on Small Business Administration for half the franchise fee. Franchise put into buying a franchise up to one hundred thousand dollars. Item 20 in the franchise agreement helps you find out information on franchisors. The key to the success of a franchise is finding a franchisor that is willing to help you out. The role of a franchisor is to help the franchises succeed. You can find more information on buying a franchise at franchise.org, franchoice.com, and sba.gov.

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