{"id":6433,"date":"2022-03-28T14:29:06","date_gmt":"2022-03-28T18:29:06","guid":{"rendered":"https:\/\/scramblersrestaurants.com\/franchise\/?p=6433"},"modified":"2022-06-29T15:29:27","modified_gmt":"2022-06-29T19:29:27","slug":"starting-a-franchise","status":"publish","type":"post","link":"https:\/\/scramblersrestaurants.com\/franchise\/starting-a-franchise\/","title":{"rendered":"Starting A Franchise: The Most Common Questions People Ask"},"content":{"rendered":"\t\t
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How much does it cost? <\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Arguably one of the most important questions franchise candidates ask when starting a franchise is the cost to open their location and where those funds are applied to throughout the process. A reputable franchisor should be able to articulate the required startup costs (typically as a range). Most franchisors even have their costs listed on their website.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Is franchisor financing available?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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This is not very common (only 12%), but some franchisors do offer in-house financing<\/a>. However, if the franchise you\u2019re looking to invest in doesn\u2019t offer franchisor financing, they may be able to direct you to resources or lending partners. Many franchisors establish relationships with lenders to ensure their franchisees get the money they need to start their business with a fair interest rate.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How much can I make?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A franchisor cannot guarantee franchisee revenue. However, many franchisors list an earnings claim in Item 19 of their FDD. This section is optional, and some franchisors may choose to leave out any financial performance representations. This doesn\u2019t necessarily mean the company isn\u2019t in good health, but the lack of information can be considered a red flag to potential investors.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How are territories determined?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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A large concern for those looking to invest in a franchise is the risk of cannibalization. If you\u2019re promised a \u201cprotected\u201d or \u201cexclusive\u201d territory, you\u2019ll want to familiarize yourself with the terms of the agreement and understand what the franchisor can or cannot do in regard to your location\/area.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How is the company's financial health?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Item 21 in the FDD will have information regarding the company\u2019s financial situation. A franchise representative should be able to walk you through the company\u2019s previous growth and what their plans are for the future. You\u2019ll want to understand how the franchisor is making their money. If most of their income is coming from sales instead of royalties, it could be a sign of an unhealthy franchise, or a very new one.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What kind of support will I receive?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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All franchisors provide support to their franchisees. That\u2019s a huge part of what you\u2019re paying for when starting a franchise. You\u2019ll want to get a clear picture of the support you\u2019ll receive once you\u2019ve opened your doors. What kind of on-going training is provided to you and your staff? Who can you call should you run into an issue? How often can you expect to receive on-site visits? You\u2019ll want to ensure that you\u2019re comfortable with the level of support you\u2019ll be getting once you sign the franchise agreement.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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How do you stand out against competitors?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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This is very important. Like that of a job search, franchisors know you\u2019re not just looking at their opportunity. They should be able to articulate what makes them better than their competitors in the space or industry. Ask them about their competitive advantages and unique selling points.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What do I look for in a franchisee?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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In addition to financial requirements, franchisors may have personality traits or qualifications they look for in franchise candidates. Understanding who they look for will help you determine if you\u2019re the right fit for their franchise opportunity.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What is your franchisee success rate?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Pro-tip: the number of franchise locations only determines the size, not success, of a franchise.<\/em> A system could very easily have many locations with a low success rate. This could be due to the franchisor being stretched too thin and therefore unable to provide adequate support to the franchisees. On the other end of the spectrum, if a franchise is small with a low success rate, it could indicate they don\u2019t have enough resources.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Can I speak with existing franchisees?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Also known as \u201cValidation<\/a>,\u201d franchisors should have a list of franchisees in the FDD that you can contact to ask them direct questions about their experience with the brand. You\u2019ll want to speak to more than one franchisee, and you\u2019ll want to ask them all the same questions. This way you\u2019ll be able to better compare answers. Inquire about the process of starting a franchise with the brand and what their day-to-day activities look like now.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Can I see your litigation history?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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Item 3 of the FDD will outline any legal action involving the franchisor. Unless the company is still young, a short history of disputes is always good to see. A long rap sheet of legal disagreements should raise concern for potential candidates. Should the franchisor have a few disputes listed in Item 3, it\u2019s best to ask how they resolve these types of situations.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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What are the terms of my agreement?<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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While neither you nor the franchisor hopes this is the case, sometimes franchising doesn\u2019t pan out for everyone. Get a clear understanding of the terms in your agreement and what the process is should you want to sell your location and move on after your agreement expires.<\/p>\n

On the flip side, if you find great success in your franchise location, you may want to renew your agreement with the brand. Ask now when starting your franchise if renewal is possible down the road.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t

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Scramblers: Crack open the answers to your questions!<\/h2>\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t
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We aren\u2019t yolking, at Scramblers, we\u2019re happy to answer all inquiries you may have during the franchise discovery process. Transparency is key when establishing healthy relationships with our franchisees. We encourage questions, and after 30 years in the business, there aren\u2019t any we can\u2019t answer.<\/p>

When starting a franchise like Scramblers, you become part of a family and we provide on-going support to our family to ensure their success. Our digital \u201cuniversity\u201d allows every member of your staff to learn their role before starting in your restaurant. We also have our custom built \u201ccoop\u201d system \u2013 this has everything you need from hiring to daily business operations, all conveniently stored in one place. We\u2019ve mastered the brunch concept, and with our tools and business model, you can, too.<\/p>

You\u2019ve got questions about franchising, we\u2019ve got answers. We\u2019re very egg-cited to hear from you. Get started<\/a> today!<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"

The franchising industry is full of thriving opportunities, but it comes with questions. If you\u2019re not sure which questions to ask when starting a franchise, we can help! We\u2019ve broken down the most common questions potential candidates ask during the discovery process.<\/p>\n","protected":false},"author":2,"featured_media":6434,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"footnotes":""},"categories":[1],"tags":[20,16,18,17],"class_list":["post-6433","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-uncategorized","tag-faq","tag-franchise","tag-ownership","tag-scramblers"],"acf":[],"yoast_head":"\nStarting A Franchise: The Most Common Questions People Ask - Scramblers Franchising<\/title>\n<meta name=\"description\" content=\"The franchising industry is full of thriving opportunities, but it comes with questions. 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