According to the International Franchise Association or IFA, roughly 4% of small businesses in the U.S. are franchises. The franchise model is one that many business owners have found to be extremely successful. That being said, we have highlighted a few things you need to know if you are considering opening a franchise.
- Know the Costs
Franchise Fees – A franchise fee is the upfront cost to the franchisee to operate a business under the franchise. It’s important to know that this initial cost can vary dramatically depending on the franchise. Our franchise fee at Ori’Zaba’s for a single franchise is $30,000, and the fee is reduced if more than one location is purchased at a time.
Equipment and Supplies – Typically the franchisor provides the franchisee with ideas on what kind of equipment and products are necessary to begin operation and the best ways of acquiring the necessary items. Ori’Zaba’s utilizes a financial management system, a reporting tool that gives franchises access to a system that provides visibility in product ordering and pricing, profitability, sales trends, and more.
Location, Location, Location – Franchisors typically help in the selection of real estate. Often they have done research and can provide you with information on the best places to set up shop.
- Franchise Disclosure Document
Franchisors are required to give you a franchise disclosure document (FDD) before you sign any contracts or agreements. The FDD will provide information about any initial fees, an estimate of initial investment, and more. This document gives the prospective franchisee all the information they need to make an educated decision about purchasing the franchise.
Training is one of the most important aspects of purchasing a franchise. A streamlined approach to training employees is truly an asset and one of the perks of purchasing a franchise. In some cases, such as with Ori’Zaba’s, the training is ongoing even after the franchise location opens to provide franchisees with extra support.
Interested in learning more about franchising with Ori’Zaba’s? Contact us today to learn more about how to become part of the growing Ori’Zaba’s family!