Ask Entrepreneur

Are Royalty Fees the Norm with Franchises?

I am interested in a franchise that charges a $30,000 franchise fee and takes a 6% royalty fee from gross sales. I have spoken with a few other franchise owners who say they've never heard of a royalty fee like this and that the only payment they've made is the one-time franchise fee. Can you advise?
Jeff Elgin

With So Much Focus On Healthy Eating, Should I Franchise French Fries?

See how to get your questions answered and ensure your business concept will succeed in the market before you start the official franchise process.
Jeff Elgin

How Can I Create a Burger Franchise?

A while back I launched a burger stall. I now have two stalls in separate locations, and both are doing very well. I want to take my business to the next level, and I think the best way is to franchise it. How can I do this?
Jeff Elgin

How Do Master Franchise Owners Get Paid?

Are master franchisees that are hired by the franchise companies paid normal, fixed incomes or do they only receive sales commissions? How does this work? What are some of the positives and negatives of being a master franchisee, as you see them? Any tips you have are appreciated.
Jeff Elgin

Which Franchise Markets Are Most Profitable?

Given the current economy, when looking into buying a franchise, which franchise industries are the hottest for buying into right now? Which markets would you avoid? Why? What other advice can you share for choosing the right franchise to buy?
Jeff Elgin

How Do I Close Down My Franchise?

I sent a letter to our franchisor and to our lessor informing them that I am not renewing the franchise agreement. Since our lease contract will end soon, the franchisor offered to operate the business under our name and using our equipment until the lease expires so that we can get our security deposit back from the lessor. They asked us to give them a portion of the security deposit as a management fee and on the condition that all income will go to them as they will pay all the expenses. Is this legal? What document can we prepare to ensure that we have no obligations to them at the time the business closes?
Jeff Elgin

How Much Freedom Do Franchisees Have?

I'm interested in a few franchise businesses in the automotive industry but I'm having a hard time convincing myself that franchises are the way to go rather than opening my own business. What happens when I have better ideas than the franchisor? Am I able to have any sort of creative license with a franchise? What tips do you have for negotiating changes with franchisors?
Jeff Elgin

How Can I Pitch My Invention?

I have a patent for an outdoor solar device that's also decorative. I'm looking to either sell the rights to it or find a company that would license it. What are the best ways for me to get my products in front of interested companies? What should I avoid?
Brad Sugars

How Should I Analyze a Market?

I am looking to start a fast food restaurant. However, I don't know which type would be most profitable in today's market (ethnic, casual, etc.). Is there any way I can get an expert to assist with this decision? Or, how do I do this on my own? I would like to avoid spending money on an idea that is not going anywhere.
Brad Sugars

Should I Use Personal Funds to Start a Franchise?

I’ve been doing a lot of research lately about franchises and I'm assessing the financial state I should be in to buy a franchise. How much of my personal funds should I use to start a franchise? Should the majority come from loans or investors? How much money should I put aside after buying the franchise?
Jeff Elgin

Are Franchise Fees Negotiable?

When looking at options for a franchise to buy, is the cost of the franchise and what’s included in the franchise fee usually flexible? Can I negotiate these? If so, what should I keep in mind? If not, what factors are negotiable?
Jeff Elgin

Can I Find an Investor for a Seasonal Product?

I have a product which is seasonal in nature as it is used for entertaining purposes during the spring and summer months when people use their patios, pools and go to the beach. I know its not in the hot technology or healthcare markets, but I am looking for capital to purchase a mold, have parts injection molded and then buy advertising time on TV to present the product to a large audience. Do you think its possible to find venture capital for this type of product? Is there a better way to raise money?
Tim Berry

How Should I Prepare for a Franchise Discovery Day?

I've been researching franchises and have finally settled on one that seems to be a good match. I'm about to head to its franchise discovery day. What can I expect? How should I prepare? What should I be looking for?
Jeff Elgin

What Do I Need to Buy a Franchise?

I'm interested in movie theaters. What certificates and documents would I need to have to buy a franchise in this market? Is it possible to buy a franchise without any capital?
Jeff Elgin

Is it Risky to Buy Into a Small Franchise?

I am currently investigating a franchise that only has one franchised unit open. What special considerations should I take when researching it? I want to make sure the franchise is going to be just as successful as any other with hundreds of units.
Jeff Elgin