Investing in a franchised brand is a fantastic alternative to business ownership, giving you the freedom and flexibility to live out the dream of building your business while avoiding the hassle of starting from scratch.
At TWO MEN AND A TRUCK®, we provide franchisees with a solid framework and the necessary tools to achieve revenue growth, diversification of services, and overall business success which in turn, helps them reach their personal and financial goals. Whether it’s franchising in the moving industry with us, or a different type of franchise business ownership, it’s important to ensure you do your own research to find the best fit.
This is a major commitment, both professionally and financially, so it’s a good idea to research the company as much as possible, speak directly to existing or past franchisees, examine the company’s financials, and from there make an educated decision on whether the opportunity is a good fit for what your personal and business goals are.
Below, we’ve come up with five things to consider before signing a franchise agreement to make sure you’re putting yourself in the best position for success!
1. How long is the agreement and what are the renewal terms?
Most of the time, a franchising agreement will range anywhere from five years to 20 years. Be sure to talk with the franchisor and get a feel for what is expected once you put ink to paper and be sure the agreement will span long enough to cover your investment.
2. Are you signing a one-sided agreement?
There are times where you’ll notice franchise agreements can strongly favor the franchisor. The last thing you’d want to run into is the franchisor having the ability to make a forceable change at any time!
Give the franchise agreement a thorough examination to ensure you’re protected and that your hard work can’t be washed away by the inaction of others.
3. What fees are involved?
All franchise agreements will come with initial startup costs and fees to get you off the ground and running. This could include franchise fees, transfer fees, renewal fees, advertising fees, royalties, training fees, technology fees, and more. Sometimes, franchisors will require the use of certain vendors at the expense of franchisees, too. Review all fees and costs so you know where you stand financially before starting.
4. Do I own exclusive rights to the location I’m investing in?
Franchise territories aren’t always exclusive, and there’s a chance a company can divide franchise territories. Make sure to ask the company’s franchise development team how they divide these territories before investing.
5. Is the franchise agreement negotiable?
Finding out a franchise agreement is negotiable should raise concerns for you. It’s important to ensure your franchise agreement is uniform because that means you’re operating under the same terms as other franchisees within the system.
If you’re interested in learning more about franchising with TWO MEN AND A TRUCK, click here
