{"id":17610,"date":"2015-11-23T01:05:49","date_gmt":"2015-11-23T01:05:49","guid":{"rendered":"https:\/\/www.thefranchiseking.com\/?p=17610"},"modified":"2023-07-17T17:11:40","modified_gmt":"2023-07-17T21:11:40","slug":"the-7-most-important-factors-to-consider-when-choosing-a-franchise","status":"publish","type":"post","link":"https:\/\/www.thefranchiseking.com\/the-7-most-important-factors-to-consider-when-choosing-a-franchise","title":{"rendered":"The 7 Most Important Factors to Consider When Choosing a Franchise"},"content":{"rendered":"

\"the<\/a><\/p>\n

(Sponsored Post<\/em>)<\/p>\n

Purchasing a franchise can be one of the most emotional, stressful, and exciting moments of your life. Dropping a check for $10K – $50K (or more<\/em>) will be one of the scariest and<\/em> most exhilarating purchases you\u2019ll ever make.<\/p>\n

Look, getting into business with your best friend is nerve wracking, let alone a giant, impersonal corporation who wants a fat startup investment. You\u2019ve got to be careful.<\/em><\/p>\n

I\u2019m Bedros Keuilian, the CEO of Fit Body Boot Camp<\/strong>, American\u2019s favorite 30-minute fat loss workout and the fastest growing fitness franchise, and I understand that franchising doesn\u2019t always go the way people hope.<\/p>\n

But I also need you to understand that if you get this decision right<\/em>, owning a franchise can be one of the most rewarding paths to business ownership, financial independence, and ultimate freedom.<\/strong><\/p>\n

That\u2019s why I always jump at the chance to work with franchise experts like Joel Libava<\/a><\/strong> and others out there who have dedicated their lives to helping people just like you make the right decisions for your future and your family.<\/p>\n

I want you to experience the best franchising has to offer, not the worst\u2026<\/em><\/p>\n

Now, because you\u2019re a reader of the Franchise King\u2019s site I\u2019m pretty sure you know how important it is to do this whole franchising<\/em> thing the right way. So, for you and anyone else trying make an educated business investment, I\u2019ve put together the following list.<\/p>\n

Keep in mind that even though Fit Body Boot Camp is a fitness franchise, this list is NOT exclusive for those looking for fitness franchises\u2026 it applies to all types of franchise models.<\/p>\n

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The 7 Most Important Factors to Consider When Choosing a Franchise<\/h2>\n

Lets get to it\u2026 keep these 7 Key Factors in mind before signing any contracts so that franchising will transform your life for the way better rather than of the much, much worse<\/strong>:<\/p>\n

#1 \u2013 The Cost Factor<\/u><\/h2>\n

Should be pretty obvious, but the first thing you\u2019ve got to consider whenever you\u2019re researching a franchise model<\/a> is the Franchise Fee.<\/p>\n

Of course, you can\u2019t be immediately put-off by what appears to be a giant number. You\u2019re playing in the big leagues now and we deal in big numbers up here. However, that big number better be followed up by big service, support, and systems.<\/p>\n

But the truth is, franchisors aren\u2019t trying to squeeze you dry and leave you hangin\u2019. Here at FBBC, for instance, the franchise fee you pay to join our brand pretty much covers the cost of training, educating, and supporting you during your first few months\u2026 plus the cost of building out your website, getting traffic to it, and the cost of your pre-opening marketing blitz. Yes, we invest a lot of the franchise fee back into our owners.<\/p>\n

I can\u2019t speak for all companies but we do our best to make sure you have everything you need to succeed\u2014 crippling you with a ridiculous franchise fee is the polar opposite of our number one priority.<\/p>\n

And that\u2019s exactly why it\u2019s so important for you to carefully consider the cost of any franchise and what you\u2019re getting for that money.<\/strong> Not just because you shouldn\u2019t spring for something you can\u2019t afford but also because you need to make sure you\u2019re getting your money\u2019s worth.<\/p>\n

Oh, one more thing for you\u2026<\/p>\n

Ever wonder why some franchises charge $50K, $60K or more? Do you really get that much more than the franchise who charges $20K-$30K? Not always. Some franchises use services to find them leads\u2026 nothing wrong with that. But these services operate like headhunters and ask for huge commissions to the tune of $15K to $25K per new franchisee they bring in. So the franchisor has to inflate their franchise fee and pass that cost on over to you.<\/p>\n

Not cool.<\/p>\n

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#2 \u2013 Royalties<\/u><\/h2>\n

Here\u2019s another issue that seems obvious but is often overlooked by most people.<\/p>\n

Did you know that not all franchises require a percentage based monthly royalty?<\/strong> See, I honestly feel like that\u2019s daylight robbery, punishing you for being successful.<\/p>\n

Here\u2019s how I see it\u2026 with a percentage based royalty fee each time you make more money, you pay more out to the Franchisor. As a franchisor I LOVE the sound of that! But as a human I think that if I work harder and increase my income I should not have to pay more royalties – unless the franchisor did something to help me increase my revenue. Otherwise I look at it as getting punished, which is how I feel about the taxes that I pay to the government for making more money.<\/p>\n

That\u2019s why I built FBBC with a flat-rate royalty so that it\u2019s affordable your first months in business and pretty much negligible once your FBBC location starts rocking!<\/p>\n

(By the way, if you\u2019re interested in learning more about the Fit Body Boot Camp model and how we\u2019re able to maximize fitness business profits then <\/em>head on over to our site<\/em><\/a><\/strong> and learn what we can do for you.)<\/em><\/p>\n

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#3 \u2013 Co-op Marketing Fee<\/u><\/h2>\n

Another fee you\u2019ll definitely want to ask about is called a Co-op Marketing Fee or just \u201cmarketing fee\u201d. This one easily slips under the radar when you\u2019re first getting started with a franchisor but can come back to bite you\u2014 hard.<\/p>\n

First of all, it\u2019s not optional<\/strong>. So make sure you get all the details regarding this one before you sign anything because you\u2019ll be paying it for the rest of your time working with that brand.<\/p>\n

Essentially, it\u2019s cash that every franchisee must pay into one central fund that contributes to a national marketing budget. Oh and here\u2019s the part that I love\u2026 the franchisor gets to keep up to 15% of that money they collected as a \u201cmarketing budget management fee\u201d.<\/p>\n

Don\u2019t get me wrong\u2026 marketing is important and you gotta do it. And if that means that I as the franchisor have to make you do then so be it. But the truth is most franchisors don\u2019t know how or where to spend your co-op marketing budget to actually get you leads, clients or customers. So they spend it on \u201cbranding\u201d billboards or poorly produced ads and media.<\/p>\n

You should ask around to find out exactly where your money is going and make sure those payments will be used on something that genuinely benefits your<\/em> business. Or better yet, find a company that doesn\u2019t require<\/em> that you pay this fee.<\/p>\n

At Fit Body Boot Camp, we never bully a franchisee into paying for a marketing fund because the way we see it, that\u2019s why you pay a royalty fee every month. But that doesn\u2019t mean we don\u2019t have robust national marketing. In addition to that we also have added marketing services that we offer to our FBBC owners, but those are all optional and we actually track results so that if we\u2019re not making you more money than you\u2019re investing in marketing then we ask that you not use our marketing resources. What a crazy concept, right?<\/p>\n

(It\u2019s always nice when you aren\u2019t forced into paying a fee after you\u2019ve already given tens of thousands of dollars\u2026)<\/em><\/p>\n

 <\/p>\n

#4 \u2013 Success Stories<\/u><\/h2>\n

This is something Joel talks about all the time on this blog and in his videos and, as you might imagine, there\u2019s a very good reason for that. Hearing from real people with genuine success using the model you\u2019re interested in purchasing is one of the most crucial elements of choosing the right franchise.
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