An owner/operator using the licensed business model
The relationship between the franchisor and franchisee
A legal document containing essential information about the Franchisor. Part of the pre-sale
due diligence process to enable the Franchisee to make an honest and informed decision about
their investment. Franchisors must provide you with the FDD at least 14 days before signing
an agreement or the exchange of money. The document is a legal report on the company,
it's history, it's performance, and it's obligations. Here you will find any
disclosure on litigation, bankruptcy, fees, estimated investment, requirements, economics,
and provided assistance and training.
Franchisors offer various levels of support in the initial phase as well as ongoing support
throughout its relationship. This may include location assistance, scheduling and logistics,
sales support, and staffing support.
A combination of federal and state laws that govern the registration, offer, and sale of
franchises. The Federal Franchise Rule is the overarching federal franchise law that governs
all franchise transactions throughout the United States; it is enforced by the Federal Trade
Commission directly related to the Brand's disclosure of the Franchise Disclosure
Document prior to the offer or sale of any franchise.
FAQ
A franchise is a licensed business model regulated by the Federal Trade Commission. Buying
a franchise typically comes with a proven business model, training, franchisee support, and
brand power. Some brands also provide location assistance, scheduling and logistics, sales
support, and staffing support.
We always say there are 2 main ingredients to a successful franchise: finding the right
brand and following its system. Some franchisees earn $50k a year while others earn $1MM+.
On average it is a 4-month process to close on a franchise. One month to assess and review
brands that best align with your criteria. Two months getting to know the brand, review
data, hone your decision, and have funding aligned. The final month to review the franchise
agreement, visit HQ, and finalize funding. If using financing, it will take additional time,
so it is important to start the funding process as soon as possible.
Franchise Discovery: The first step is to assess your qualifications, business criteria,
and role in the business.
Brand Guide: A brand guide is curated just for you, based on your unique criteria and
goals. We'll review these top brands and you'll select which brand(s) you want
to explore.
Brand Introduction: Now you and the Franchisor get to know each other. You will dive
into the day-in-the-life-of, Franchise Disclosure Document (FDD), and have an
opportunity to speak to current franchisees.
Decision Time: You've now had the time and data needed to confidently make the
choice that is best for you. If the franchisor also thinks you are the right fit - they
will invite you to their Discovery Day.
Month four - closing. All pieces have come together to finalize the opportunity at hand
and begin operating your business.
SBA Loan - Loans up to $5 million, with low interest rates, and flexible repayment
terms.
401K Rollover - Also known as ROBS (Rollovers for Business Start-ups), allows
entrepreneurs to use their retirement funds to invest in a franchise without taking a
taxable distribution.
Franchisor Financing - When a franchisor offers to finance your purchase of their
franchise. Here you'd make payments directly to the franchisor over a period of
time. Not all franchisors offer in-house financing.
Managerial experience
Minimum Liquid Capital of $50K
Strong Credit Score
Franway services are always complementary
An obligation-free process, you’re invited to explore your potential as a franchise
owner