-Written by Cathryn Armstrong
Congratulations on your decision to join the world of franchising! As you begin the process of becoming a franchisee within a system you’ve chosen, it’s important to review the franchise agreement you’re about to sign so you clearly understand expectations and the full relationship with your franchisor.
Take a look at some of these important questions you should ask, and review them for yourself!
What are the fees associated with the agreement?
Naturally, there will be fees associated with the franchise you are deciding to buy into. Everything from renewal fees to transfer fees, advertising fees, technology fees, training fees, and royalties are on the table with franchising.
You may also be required to work with certain vendors at your own expense, so make sure you’re aware of all financial projections associated with your agreement.
Will your agreement be negotiable?
Negotiable franchise agreements should be a major red flag. It’s imperative that there is uniform franchisee agreements across the system to ensure fellow franchisees are required to work under the same terms as you.
This helps the brand you’re investing in retain its quality, and helps the overall value of your investment grow within the system.
Is this agreement one-sided?
Franchise agreements should be strong and protective of your investment, and it’s important to make sure the agreement you are signing isn’t one-sided.
Be sure the franchisor doesn’t have provisions that heavily favor them, which will eliminate any unwanted power shifts or undermining of your business. Investing in a franchise brand is one of the most important assets of the process, and you want to be sure you’re relationship with the franchisor will be a positive, successful one.
What is the length of the agreement and the terms of renewal?
Franchise agreements can vary, but they typically range anywhere from five to 20 years. Make sure that the duration of the agreement allows you to recover your initial investments.
The main reason to get into franchising is to become part of a thriving system with resources and processes in place to allow you to grow as a successful business owner. Following up on these questions will help make that a possibility. Successful franchising systems are built on relationships and support, and it’s important to research this before signing.
At TWO MEN AND A TRUCK®, we are the fastest-growing franchised moving company in the nation, and provide high-quality support from top to bottom throughout the system. Within our system, 98% of people start off buying one franchise, and continue to expand their franchise presence. Twenty three percent of franchisees own two locations, and 20% own three locations or more.
As the “Movers Who Care®”, we strive to bring outstanding customer service and innovation with each of our more than 350 locations, while also putting a heavy emphasis on giving back to all of our local communities. Give us a call today, and find out how you can become part of this world-class franchising system!
Interested in a franchising opportunity with TWO MEN AND A TRUCK®? Visit our franchise page to learn more about available opportunities!
TWO MEN AND A TRUCK® is the first and largest franchised moving company in the United States. Let us help move you forward! For more helpful tips and information on moving services subscribe to our blog and like us on Facebook.