Why Franchises Have Better Success Rates Than Non-Franchised Businesses

Do you want to know why franchises succeed more? If YES, here are 11 reasons franchises tend to have better success rate than non-franchised businesses. When you decide to be your own boss, you are faced with many emotions and breathtaking decisions. There is a particular excitement that comes with running a successful business, making…

What is a Franchising Letter of Intent for Franchise Business?

A franchising letter of Intent is the formal agreement between a franchisor and a franchisee that outlines the terms and conditions of the agreement such as payments, diligence periods, sanctions, and other conditions that have been extensively analyzed by both parties. This letter is a result of an agreement between the franchisee and franchisor. In…

What is Liquid Capital for a Franchise? Can Loan Be Used as Liquid Capital?

A franchise’s liquid capital is defined as the amount of funds a franchisee needs to have at hand in order to efficiently launch the franchise business. Please note that this doesn’t just represent the sum of funding you will pay the corporate entity (known as the Franchise Fee). The liquid capital typically constitutes the franchise…

What Information is Included in a Franchise Agreement?

A franchise agreement is a legal contract between a franchisor and a franchisee that outlines the terms and conditions of the franchise relationship. It is a comprehensive document that provides important information about the franchise business, including the franchisor’s rights and responsibilities, the franchisee’s obligations, and the terms and conditions of the franchise agreement. If…

When Will a Franchise Owner Experience the Coattail Effect?

The “coattail effect” is the political concept in which a widely known senior politician attracts votes for other aspirants in his party. A franchisee will encounter coattail effects from the first day they enlist the franchise business, especially since the practices of both the franchisor and other franchisees will influence how the business is perceived…