When you buy into a certain company, this allows you to use the rights and the business concept that goes with that particular brand. All you have to do in return is pay the initial franchise fee and a low percentage of your monthly profits or royalty.

A franchise is an agreement with the parent company and yourself. When you sign into a contract you are allowed to use any and all of the logos, markets all the products within that franchise and use all the business plans to succeed in operating the franchise. There will a legal agreement binding both parties together with only a small initial fee of buying into the business and what is called a royalty fee through the profits.

It has been proven time and again that buying into a franchise is the best route to go. This is due to a variety of reasons. You would be buying into a company that already has a national reputation. Through pre-made policies that are guaranteed to make the business succeed and you don’t have to go through a trial and error period.

It varies from company to company. There are many factors to take into consideration like the population of your city and if you are here to build a store or buy it from another owner. It can range from a couple grand all the way to a million dollars.

This depends on where your skills lie. If you are mechanically inclined, then go for an auto shop; if you are more of a manager go into retail etc.

The first step is to do research and find an open opportunity near you after which you can talk to a business broker or a franchise consultant.

Depending on your current financial situation you will be able to get a loan from a bank that deals with the head office of franchisor company.

This is one time initial fee paid by a franchisee at the time of starting the franchise. The use of franchise brand name, operating systems, logo, trade dress etc. is included in the fee.

Royalty and advertising fees, generally, based on percentage of sale are charged.

The franchisor provides ongoing support to its franchisees in all aspects of their daily operations.

Franchisors may direct you to a number of lenders that have provided financing options to other franchisees.

Franchisor provides necessary training covering all aspects of conducting day-to-day business that may include classroom training and hands on/ in store training for you and your management employees.

Among many other things, franchise provides proven business model, site selection support, lease negotiation support, construction support and guidance, store opening support, ongoing operational support.

This includes the franchise fee, construction cost, opening inventory, first and last month rent, opening promotions and working capital

If you have done well for several years then you can sell the business like you would do with any other business. However, prospective buyer needs to be approved by the franchisor.

Unencumbered cash is cash on hand, in a savings account, chequing account or GIC account, otherwise known as “liquid capital”. Home equity and RRSPs are not usually considered unencumbered, unless you can borrow against your home or RRSP. Your assets must be in Canada and you must be able to provide appropriate documentation to substantiate all assets.