Ask Entrepreneur - Franchises

How do I know if my business is right to be franchised?

We've had our family business for a few years and wonder if it would be a good model for a franchise system.

How do you prepare a franchise agreement for an LLC?

The franchise is a property management company.

What should I look for during my franchise search?

I'm interested in buying a resale franchise business. It's a profitable franchise opportunity, but I'd like to know the specific precautions I should take.

What industries are the hottest for new franchises during the recession?

What industries are doing better than others right now? I want to pick a franchise that's doing well and will continue to be successful for years.

Should I form an LLC before I sign the franchise agreement?

What about before applying for a loan?

What questions should I ask if I'm buying an existing franchise?

I would love to know what information I need in order get the full picture about whether the franchise will be profitable.

What is the difference between licensing and franchising?

What advantages does a business gain when they license instead of franchise? Recently, I contacted a business which I thought were into franchising, until I was corrected with the right term "licensing."

If a franchisor declares bankruptcy, what happens to the franchisees?

I'm considering purchasing several franchisee food restaurants but am worried that the franchisor might go into bankruptcy.

What are my rights if I purchased a franchise that didn't have a license in my state?

The franchise I purchased told me I didn't need a license to operate a small business. Now I'm paying big franchise fees with literally no support. Am I bound by the non-compete clause if I start a new business of my own under a new name?

How can I force a franchisor to honor the franchise agreement or return the fees I've paid?

I bought a franchise area with rights to sell franchise territories within that area. The franchisor has since made changes to the franchise agreement before allowing any more franchise sales. Therefore I have never been allowed to sell franchises. I don't have the money for a legal battle.

How can I determine a true projection of earnings for a franchise?

The franchisor skirts the issue with vague answers. Surely there must be a way that they can share supportable earnings projections of for their units so that I can determine if this is a good investment.

Does buying an existing franchise qualify for an SBA loan?

I want to buy a franchise from an existing owner. Can I use an SBA loan to finance the sale and to finance working capital?

What's the best way to raise the last bit of capital needed to launch my business?

I have raised $700,000 in funding from two local investors for a hospitality business. I need an additional $300,000 of funds--what's the best way to raise the rest?

How can I grow my business during the recession?

Despite the economic downturn, I still want to grow my small business. What are some good strategies?