How do I approach a business to entertain the possibility of franchising?

Question

I found a business, and I love their concept. I'd love to expand their business as in investor, but don't know how to approach them. They are privately owned and NOT currently franchising. I want them to take me seriously, so what kind of documentation would you recommend I have prepared? Business plan? Financial statements? Should I treat this like franchising is already available, or is that too premature? Perhaps I simply start with a letter? I want to step off on the right foot, so someone please help.

Answer 1

Your idea of beginning with a letter to the principles of the business sounds like your most logical course of action at this point...Franchising a business model requires an enormous amount of preparation which, may not be attractive to the operators of the business you wish to enjoin with...
Perhaps they would be open to another arrangement...like allowing you to open a second location under a simple licensing agreement in which you can use their name, logo signage etc. for a predetermined fee.
Have a happy day...Good luck.

Answer 2

Start with a proposal, but you need to understand the legalities, which means one of your first stops is a local lawyer to fully understand what restrictions or limitaitons may apply in an offering.

You can just go door to door and offer strangers a Franchise for $250,000. This kind of an "offering" is often regulated. It requires a licensed broker, CPA or Lawyer make the offering.

It depends on the kind of Franchise, soo.

A friend of mine's father got the Peppridge Farm Franchise for a whole county and all he had to do was house the cookies in some area (that was up to him), buy a complete stock from Peppridge Farms with regular restock, put thme into the stores (Pepperidege Farms offers "signing" etc., plus they advertised on TV).

Now for a brick and mortar business, the franchiser (you) helps them with the acquition of land or lease, helps them build the building to clone specifications and helps them with marketing. You are supposed to know the area and place the business where it would thrive.

In both instances a fee is paid to get the franchise and the fanchisee is not allowed to sell it without permission.

They get to use name, likeness for the life of their franchise, which can endure even after the business ends.

For example, Marriots offered the Bob's Big Boy franchise in Calfironia and then dropped it.

But there is still one franchise open in Glendale and he can use the logo, name and exiswting menu, even though Marriot no longer supplies him or helps him.

You have to provide clone supplies, sent in by truck on a regular basis.

You provide them with everything.

They simply management the place, operate it and sell your stuff. If they make a profit great, if not they go belly up.

Read the history of White Castel Hamburgers

Taht's a good starting place to learn how a franchise is built from a ma and pop operation.

Go to their website and read their history.

http://www.whitecastle.com/_pages/menu.asp

Answer 3

A franchise is the place a individual might pick to possess a corporation and makes use of the call and merchandising shape of an latest corporation. case in point, many McDonald's eating places are franchises. the guy eating places are owned by ability of persons or communities of persons and that they use the McDonald's call and products. McDonald's company components merchandising, training, the ordering and working structures, etc. the owner will pay a cost (many times a proportion of the revenue) to get entry to this and to apply the call. different franchises incorporate maximum quickly nutrition chains, some retail chains, issues like product proprietor's Tire, etc. the advantages are length (no way ought to somebody proprietor locate the money for the merchandising that McDoanld's does), a tried and genuine equipment (all McDonalds prepare dinner the comparable, etc., so as a customer, you recognize precisely what you will get once you walk for the time of the door). the corporate gets an earnings (the franchising value) and does not ought to pay for enlargement (the proprietors pay to construct and run the shops).

Answer 4

Ethicly, you can't just walk up to a business and ask to franchise. That's not good business sense. A business needs to agree to franchise first. So, if the business is not willing to franchise, what's the point?
Franchising by the parent company costs a lot of money. They foot the startup bill and you run the business. They get major royalty. So, as a small privately owned business, it's probably more expensive for them to get the startup costs than to easily say no.
Ever thought about opening your own business using your own name? Is it the startup costs that worry you? There are plenty of federal grants out there for people who want to open up their own business. Look into it.
Franchising is a great idea if you want to be a partner with a reknown company like Quiznos or something. But to franchise with a small privately owned company is a bad idea. They aren't financially stable as big companies to venture into franchising deals.

Answer 5

I would suggest going over to them (ask for an appointment) people will listen. Just tell them you would like to discuss a confidential legitimate business opportunity with them and that you would appreciate 15 minutes of there time. Be sure to tell them that you are not trying to sell them anything, they get a million calls a year from people trying to sell them something I am sure. Sell yourself first.

Also I would not start a franchise off the bat, look into starting a distributorship first, less legalities, paperwork, etc. Good Luck!

If you would like to brainstorm a bit, just send me an email and I will send you my phone number (no strings attached), I have a better idea for you on your approach. [e-mail]

In the Spirit of Success,
Dan

Answer 6

Just ask to speak to the owner, hopefully being a small size company they would not mind talking. then just explain that you would like to know if they would be interested in an investor or even franchising. what the worst they could say... as far as the paper work i would wait to see what they say...then i would talk to legal council (business lawer) for the paper work. That is if the owner is not sure of the paper work either.

Answer 7

You could check on the internet for businesses you would be interested in. Alot of business offer people the chance to get into the franchise.

Answer 8

First of all, you need to explain to them why you think it's a good idea to expand, such as, is this a good place for such an industry. Is this product be marketable and profitable in this industry, in other words, will these products sell well in this area and why will it.

But first of all, before I would of expand, I would study that area out just to make sure that a profit is possible in that area, otherwise, you're taking a huge financial risk by doing so. A letter would sound like a good idea. Say in your letter why these products that you're selling are a good idea to sell in these areas.

Answer 9

A letter of credit from your bank and some kind of proof that you have knowledge of how to franchise a successful business would be what you need to start with.

Answer 10

if you are asking this question...as a franchise owner, you got nothing in the experiance department, there is seminars, there is business school..i mean there is common sense..and above all..what you need to sell a franchise..that is usually high priced compare to an ordinary shop of whatever kind...you need a sales pitch and for that you need a gift...if you dont have what it takes to make some one pay you or show you that they are liquidly worth a damn...you are not going to see non