Franchise FAQ

At Just Franchising, we help aspiring entrepreneurs navigate the franchise world with expert guidance. Below, we answer the most common questions about franchising to help you make an informed decision.

What Is a Franchise?

A franchise is a business model where a franchisee buys the rights to operate a business using an established brand, business system, and ongoing support from the franchisor. This allows entrepreneurs to own a business with a proven framework rather than starting from scratch.

How Does Franchising Work?

Franchisees invest in a franchise by paying an initial franchise fee and ongoing royalties. In return, they receive training, branding, marketing support, and access to a proven business model. The franchisor provides guidance, but franchisees manage daily operations.

What Are the Costs of Buying a Franchise?

Franchise costs vary by brand and industry but typically include:

  • Franchise Fee – The upfront cost to join the franchise system.

  • Royalty Fees – Ongoing payments, often a percentage of revenue.

  • Marketing Fees – Contributions to national or local advertising.

  • Operational Costs – Rent, inventory, payroll, and other business expenses.

What Are the Advantages of Owning a Franchise?

  • Established Brand Recognition – Customers trust well-known brands.

  • Proven Business Model – Reduced risk compared to independent startups.

  • Training & Support – Ongoing guidance from experienced professionals.

  • Marketing Assistance – National and local advertising strategies.

  • Higher Success Rate – Franchises generally outperform independent businesses.

What Are the Risks of Franchising?

While franchising offers many advantages, it’s important to consider potential risks:

  • Initial Investment – Some franchises require significant startup costs.

  • Ongoing Fees – Royalties and marketing fees impact profit margins.

  • Franchise Agreement Restrictions – Limitations on how you run the business.

  • Market Competition – Some industries may be highly competitive.

How Do I Choose the Right Franchise?

Selecting the right franchise requires research and expert guidance. Consider:

  • Industry & Market Demand – Is there strong consumer interest?

  • Financial Requirements – Do you meet the investment criteria?

  • Franchisor Reputation – Check reviews and speak with existing franchisees.

  • Training & Support – Ensure the franchisor offers strong ongoing assistance.

We can provide you with additional guidance from one of our experience franchise consultants!

Can I Finance My Franchise Investment?

Yes! Many financing options exist, including:

  • SBA Loans – Government-backed funding for small businesses.

  • Franchisor Financing – Some franchises offer in-house financing.

  • Traditional Bank Loans – Business loans from banks or credit unions.

  • 401(k) Rollover for Business Startups (ROBS) – Use retirement funds without penalties.

Do I Need Prior Experience to Own a Franchise?

No! Many franchises provide extensive training, so industry experience isn’t always required. However, strong business management skills and a passion for customer service can be beneficial.

What Is the Franchise Disclosure Document (FDD)?

The Franchise Disclosure Document (FDD) is a legal document that provides details about the franchise, including financials, fees, obligations, and legal history. Reviewing the FDD with a franchise consultant or attorney is essential before signing an agreement.

How Long Does It Take to Open a Franchise?

Timelines vary, but most franchisees can launch their business within 3 to 12 months after signing an agreement. The process includes site selection, training, permitting, and marketing setup.

How Can Just Franchising Help Me?

At Just Franchising, we match aspiring franchisees with the right opportunities based on their goals, budget, and lifestyle. Our services include: