No matter what kind of franchise opportunity you’re considering, all franchisors are required by law to hand out a Franchise Disclosure Document (FDD) at least two weeks ahead of signing time.

In short, the FDD is a master guidebook to the business. Inside, you’ll find a wealth of information about the franchisor and the franchise organization along with the finer details of the opportunity itself.

While these documents are packed with info, it can be a dense read. To the first-time franchise buyer, flipping through page after page of lengthy text and legalese can be daunting.

This guide will help you step through each of the 23 sections or “Items” you’ll find inside. We’ll highlight the key sections to pay close attention to and point out potential FDD red flags to watch out for as well.

Let’s start at the very beginning:

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Thinking about buying a low cost franchise? Worried about the earning potential? Don’t worry –– it’s healthy to be skeptical. Many people looking to become business owners with a franchise assume that if an opportunity doesn’t cost much to start, it must mean there isn’t as much to make for one reason or another.

The truth is, many franchise owners turn a little into a lot every year. One of our very own franchise owners plans to do $1 million in sales in 2018 owning and managing his grout and tile franchise, The Groutsmith. Learn more about Mike Ketzner and his low cost high profit franchise here.

In general, turning a low cost franchise into a high profit business boils down to three essentials: doing your homework, learning and using the systems the franchisor lays out for you, and making smart investments in growth.

Mark Laughlin, a former owner of three low cost franchises (that he grew and sold for six-digit figures) says the key to low-cost franchise profitability is more about the franchise’s business model than the business itself. Specifically, he recommends new franchisees “find a business model that fits your life and your personality, not just your business goals.” Read more

“Location, location, location.”

We hear it all the time, but is location really the only thing you need to get right to be successful?

Of course not! We all know success doesn’t just come to those who pick a great spot for their store or office. Businesses succeed when they combine the right location with great products and service, a strong brand message, and quality customer service buyers truly appreciate.

Even with all of these in mind, location and more importantly territory are crucial factors in determining whether or not a franchise has growth potential in the long term––something that shouldn’t be overlooked as you search for the right opportunity. Read more

Franchises come in all kinds of shapes and sizes.

From restaurants to retail stores, many of these options require you to make an investment in a physical space of some kind, whether it’s building space for you customers to fill in the case of a restaurant, or an office space to run the business from.

Today, home-based franchising is becoming an extremely popular option, especially for those who aren’t interested in the risks that come with purchasing or renting physical space. 

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On the fence about running a business from home?

It’s common to have mixed feelings about it.

If you deal with a daily commute to and from work each day only to spend hours trapped behind a desk, the thought of running a business from home probably seems like a dream.

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