Can anybody tell me how does a franchise work?What financial benefits do you get and do they put some money?

Question

For example what do you need start up money ,except for pay the franchise and taxes.Any thing you know. thank you.it means a lot to me.

Answer 1

Wow - huge question.

A franchise can be as little as buying a uniform and being given a few streets for a window washing round up to buying an entire fast food restaurant and branding it "Wimpy".

A business plan is still essential. A Franchise MAY give your business a headstart. But they will WANT cash and OFFER brand or expertise.

Banks like franchises... but only established franchises. Don't be the guinea pig of a newly franchised business. Go and meet other franchise holders and talk to them about their experiences.

Answer 2

I have owned Franchises, Mail Boxes Etc. which is now The UPS Store. The only way to really make money on a franchise is to own several. The overhead is huge, you pay royalties, advertising, supplier contracts and more. The more you make the more the parent company takes. The start up costs are Franchise fees, build-out costs, initial inventory (which you usually have to buy from their suppliers). After that is all said & done then you must hire people, pay payroll taxes, insurance, hire a bookkeeper..the list just goes on. Look at the business that you want to start and check your costs if you were to do it on your own, the initial start up may be higher but in the long run the money you make will be yours.

Answer 3

I checked into a franchise once. They require anywhere from $50,000 to $150,000 just to use the name. They supply the training so that things are run according to their standards and they direct you in the suppliers direction, so you buy the right products. It can be worth it, if you are willing to sell your soul to them.