What's Your Next‪?‬ Stacey Riska

https://www.NextLevelFranchiseGroup.com
Many people who acquire a franchise want to know if they can be kicked out of that franchise.  If you are one of them you are going to want to read Item 15 of the Franchise Disclosure Document (FDD) closely.
Item 15 has to do with your obligations in the participation of the franchise itself. In this particular item, there are multiple pieces as far as what the requirements are for you and what you should be doing as a franchisee. 
Ownership Type
There are three types of business ownership and that really ties into this particular item. The question is are you going to be an owner-operator, semi-absentee, or a passive income-based business? Sometimes candidates will come to us and they're leaning more towards the second two, semi-absentee or passive and they believe they're just going to get this business and they're not going to have to be involved in it. Well, Item 15 is going to very much delineate what, if any, ongoing day-to-day involvement you as the franchisee has to keep that business going.
So basically the structure and do you have to be involved in the day-to-day or can you be semi-absentee or passive? That's really what Item 15 is laying out here. 
Training and Support
The second section is more around training and support. To caveat it’s not just the training and support of the owner of the franchise itself, but could also spell out any training that would be needed if that owner decides to hire a manager to run the operations…
watch/listen to full episode/podcast



Contact Us
👍https://NextLevelFranchiseGroup.com/contact

📰https://www.linkedin.com/company/next-level-franchise-group/

https://www.NextLevelFranchiseGroup.com
We are now continuing with a previous topic that we had been covering before which is the Franchise Disclosure Document (FDD). In particular, we have kind of worked through what they call the Items of the FDD. We've walked through Item 1 to Item 13, and now we are discussing Item 14. If you haven't listed to or seen our previous podcasts we do recommend you go back and visit those because a lot of these items can be progressive, meaning that a previous item will lead to an item later on in the document.
Item 14 reviews the patents, the copyrights, and the proprietary information owned by the franchisor, what your access to that information means, and what your limitations are. 
This is an item, in our opinion, that's more FYI-related than one that you really need to dive deep into. But you have to know that this section is really outlining  …
continued ... 
watch/listen to full episode/podcast

Contact Us
👍https://NextLevelFranchiseGroup.com/contact

📰https://www.linkedin.com/company/next-level-franchise-group/

https://www.NextLevelFranchiseGroup.com
So we are going on another rant. A lot of times when we talk to people about franchises they get very defensive about having to pay quote-unquote franchise fees or royalties. What we want to discuss today is why these fees are very important to what you are acquiring (when buying a franchise), and in most cases are a good thing, not a bad thing, when you acquire a good franchise. We’ll start off by laying out what are some of the types of franchise fees, and discuss a little bit about each one of them, what they mean to a franchisee, what the franchise is getting for them and why they can be a good thing, not a bad thing.
Let's start with a little education because those F-word fees can actually be a good thing. First, you will need to understand what they are, and in each franchise, there are a few of them you want to pay attention to. There's the franchise fee, there are royalties, there might be an advertising fee, there might be technology fees, training fees, and marketing fees. It may seem so overwhelming, but if you were to go out and start your own business, you're going to have these exact same fees (costs) in any business. It's just a cost of doing business. So let's break down these fees and understand what they are and how the franchise uses them.
The Franchise Fee
The Franchise fee is the fee that you pay when you acquire the franchise. That's your upfront investment to have rights to use that franchise's name, branding and intellectual property and systems.
It's like your golden ticket, your entry ticket to get the rights to the name, the logo, all of that. So you might be asking by now what does a franchise fee cost?
Well, first off, …
continued ... watch/listen to full episode/podcast

Contact Us
👍https://NextLevelFranchiseGroup.com/contact

📰https://www.linkedin.com/company/next-level-franchise-group/

https://www.NextLevelFranchiseGroup.com
We’re on a little bit of a rant and here's what happened. We were talking to a franchisee candidate who was really interested in owning a business. They were currently in a job that they hated and a common mantra that we hear all the time. All the typical reasons. I hate my boss, I hate my company. I know I'm next on the chopping block for layoffs, and if I'm gonna work this hard why should I do it building somebody else's wealth instead of mine? The person that I was talking to was very open to exploring franchises because they knew that since they had never owned a business before franchising made a lot of sense. A proven system where you can ramp up quickly. So far, the candidate that I talked to really fit into one of what we call the eight Fs … it was the fallacy of job security.
So as I continue the conversation with this candidate, and I asked them if they're looking at business ownership, what is the most important criterion to you in having a successful business? The answer was, well, Stacey, if I'm gonna own a business I must make my full salary on day one in this business. So the question … is this realistic?
It’s a good statement and generally people coming out of the corporate world they're coming out having had a salary for a very long time. They're very used to that money coming in on a regular basis. For that type of expectation, for them, it's not un-unrealistic only in that they've never really been in business before, so mostly they really don't know what to expect. 
I want to start off with a good piece of information regarding this statement, and that is when you're evaluating franchises and you feel like this is you need to replace your income one of the things about buying a franchise that's really nice …
continued ... watch/listen to full episode/podcast

Contact Us
👍https://NextLevelFranchiseGroup.com/contact

📰https://www.linkedin.com/company/next-level-franchise-group/

https://www.NextLevelFranchiseGroup.com
There are 23 items in the Franchise Disclosure Document (FDD) and we're going to give a brief review of Item 13. If you haven’t been following along with our reviews of the previous FDD items you might want to check those out if you haven't because a lot of these are progressive, meaning they lead into some of the future items that you would need to know information from items previously to kind of understand these particular items. Item 13, pertains to trademarks, copyrights, and other intellectual property that you have rights to under the franchise agreement.
This item really breaks down into a few different areas. 
Trademarks Royalties AdvertisingIntellectual propertyEnforcementSo, let's talk about trademarks, this is a really, really big one. This one has to do with the right to use their logos, the right to use their marketing materials, and things like that. This is one probably that the franchisor cares the most about because it's the rights to use the name, the logo, and the branding, and ultimately that's what you're paying for the rights to use. So you want to make sure that you have a legal right to do so. 
continued ... watch full episode/podcast

Contact Us
👍https://NextLevelFranchiseGroup.com/contact

📰https://www.linkedin.com/company/next-level-franchise-group/

https://www.NextLevelFranchiseGroup.com
We are going to be looking at Item number 12 of the FDD, the Franchise Disclosure Document, what it’s about, and why it's important. If you have been following along we've done the previous ones Items 1 to 11. So please go back and check those out and learn what a lot of those have built up to some of these later items that we're getting into now. Item number 12 is really important for those types of franchises where there is a built-in territory, meaning there's a geographic area attached to what you're acquiring and where you are able to do business with your franchise.
This is really broken down into a few sections in this particular item. 
Section number one is the description of the territory. Section number two is competition. Section number three is territory protection, we'll call it that. And what happens if and how can you or can you at all do business outside of your territory? So with that, we are going to provide some feedback about how our franchise that we really don't have a territory assigned to ours and what that means. There are many franchises that don't have territories or there are some that they're national in scope. Let's say they're, you're doing business-to-business and so, therefore, you could work with businesses all over the country. So there are no territory restrictions, but that would be outlined in this item. 
continued ... watch full episode/podcast

Contact Us
👍https://NextLevelFranchiseGroup.com/contact

📰https://www.linkedin.com/company/next-level-franchise-group/