Whether you’ve always dreamed of running your own company or are just learning about franchise ownership now, partnering with a franchisor is a great way to get started in the world of entrepreneurship.

Having a recognizable brand name can draw customers from day one while taking away the stress of starting a company in isolation. Franchisees are given access to a proven system that includes the support of the franchisor team and other franchisees. But how does franchising work? And what does a good franchise opportunity look like?  We’ll walk you through how the process works.

This article covers the following:

  • What is the franchising process?
  • Starting your business vs starting a franchise
  • Paying a franchise fee and other costs
  • Signing a franchise agreement
  • Selecting the right franchise

Starting your own business vs starting a franchised business

The business concept of a franchise system is relatively simple. A franchisee pays an initial upfront fee to get access to the franchisor’s brand—specifically the business name, business plan, and franchise business model—as well as training and ongoing support from the franchised business as the franchisee grows.

Business ownership is a bit different. You don’t have to adhere to any rules or pay an initial fee. But as a solo owner, you won’t have the support network or track record that’s built into established franchise systems. With no franchisor, it will be your sole responsibility to come up with a business plan, create brand and marketing materials, find your target audience, and handle all the other tasks required to get everything off the ground.

Access Your Welcome Package which includes

  • Discovery Video – 15 min overview of this opportunity
  • Franchisee Testimonials
  • The Nurse Next Door opportunity
  • Access to our calendar to book a 1×1 call.
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What is the franchising process?

Franchising should be beneficial for both the franchisor, and the franchisee. Finding new business is rarely an issue for new franchisees, as brand recognition goes a long way. You’re buying into an existing corporate brand, so no matter which geographic location you’re in, big name brands (think McDonalds or Anytime Fitness) will always find an audience. Individual franchisees often turn a single location into multiple locations—and multiple revenue streams.

Paying a franchise fee and other costs

There are costs associated with owning a franchised company, but systems are usually set up so that prospective franchisees are guided through the entire process. When a franchisee owns the right to sell products or services under a franchisor’s brand, they are usually agreeing to pay for the following:

Initial franchise fee

When you buy a franchise, owners should be aware of the associated costs. Most franchise businesses have a starting fee that covers initial training program, marketing, branding and other costs associated with making your small business a success right from the start. The business model you choose may include royalties to be paid to the franchisor based on a percentage of the income on your outlet.

For example, at Nurse Next Door, the minimum investment comes in at about $100,000 and can be started with as little as $30,000 down.

As a business owner, you’ll also need enough cash to keep your operations afloat for at least one year. This might mean having enough money to pay for rent, office supplies, or employee salaries. These costs will vary depending on your geographic location.

Advertising Fees

A franchised business may be required to pay advertising fees. This means that within the franchise relationship, the franchisor allocates advertising funds as part of their overall marketing strategy. prospective franchisees would pay a portion of these advertising dollars to promote the franchised brand. In return, franchise businesses get a lot of perks. Having a corporate brand on hand to give advice, set up IT systems, provide brand and marketing materials, and other proprietary knowledge that has made their businesses successful can be invaluable tools for new owners.

Signing a franchise agreement

According to Investopedia, franchising can be defined as:

“…a joint venture between a franchisor and a franchisee. The franchisor is the original business. It sells the right to use its name and idea. The franchisee buys this right to sell the franchisor’s goods or services under an existing business model and trademark.”

Therefore, the agreement a prospective franchisee and franchisor make needs to be a legal contract. Much like renting a company, business ownership stays in the franchisor’s hands, with franchise agreements taking place anywhere from five to 30 years.

The number one franchise rule is: know what you’re getting into. Before you buy, you’ll be given a franchise disclosure document, outlining any franchise law requirements a small business owner needs to know. This is a franchise agreement required by the Federal Trade Commission (FTC). This is a standard practice. So much so that state laws specify that individual franchisees must review this document and agree to its terms.

Selecting the right franchise

With so many opportunities available in many different industries, how do you go about choosing one?

Evaluating franchise opportunities is a key step in the franchise ownership journey. Choosing the right one could transform your life, so it’s important to ask yourself lots of questions to inform your strategy and vision.

Here are some relevant questions you should ask:

What are you passionate about?

In our opinion, this is the number one question you need to ask. Different franchises require different skill levels and if you don’t enjoy the work you’re doing, it may not be a good fit. Think about what you bring to the table. Do you have strong people management skills? Are you an expert salesperson? Or do you prefer getting out into the field and meeting clients? Then see whether your brand of choice would enable the kind of work you enjoy doing.

Are there any services lacking in your community?

Some of the best ideas target a gap in the market. Take time to look around your community and see if there is a shortage. Look at local news, community bulletin boards, or Facebook groups to find that gap in your local area. Is there nowhere to grab coffee at 8am? Do the older population in your city complain about lack of care services? There are lots of opportunities to be had if you keep a pulse on what’s happening in your town or city.

Does the franchise align with your values?

As an entrepreneur, you’ll have to get used to wearing many hats. But no matter what your daily routine looks like, you should always feel a clear sense of purpose in your work. Aligning your values with your franchise has a positive knock-on effect. If the work you do adds meaning to your life and the lives of your clients, you’ll be more likely to be recognized for that work, attract talented and purpose-driven employees, and provide meaningful customer experiences. In other words, you’re more likely to run a successful operation if your whole heart is in it.

At Nurse Next Door, we believe in the concept of Happier Aging—where we reconnect our clients with the hobbies and interests that make them happiest as they age in place. Our franchisees are people who are willing to go the extra mile to help seniors age comfortably, because they care about the work they’re doing and want every client interaction to exceed expectations. The first question we ask our clients is: “What did you used to love doing that you no longer do?”

We also believe our franchisees and expert caregivers should receive the same respect. We put a lot of focus and energy into maturing the way caregivers are treated, creating employment that is rewarding, lucrative and attractive, and helping our franchisees invest into that, Arif Abdulla, Nurse Next Door’s Vice President of Global Franchise Development is continuously asking, “How do we pay our people competitively? How do we build the right margin? How do we make sure caregivers are cared for in a meaningful way?”

Access Your Welcome Package which includes

  • Discovery Video – 15 min overview of this opportunity
  • Franchisee Testimonials
  • The Nurse Next Door opportunity
  • Access to our calendar to book a 1×1 call.
Watch Now