Franchise Information

When an entrepreneur wants to start a business, but doesn’t want the high risk of starting business from scratch, they will often buy into a franchise. A good example of a franchise is McDonald’s. Some McDonald’s restaurants are corporate owned, but many more are owned by independent owners, or franchisees. Franchisees must operate their locations based on corporate rules and regulations. The primary business owner or corporation will license trademarks and methods to independent owners. Franchises are often referred to as “chains”.

Franchising can happen in two ways. With the first, the franchisee purchases the right to a name or trademark and agrees to maintain a quality standard appropriate to the name or trademark. For example, some health clubs are franchises, but allow the owner to run things as they wish; however, they must meet minimum quality of service standards to maintain their franchise position.

The second type of franchise involves the owner purchasing rights to the business format. These franchises are often much more involved (and usually more successful). The main corporation maintains a close relationship with the franchisee and usually offers a wide range of services, training, marketing plans, product supply, and even help with site selection.

Handling Sales Calls With Franchises

One thing you will notice with a franchise is that their ability to market is often governed by the main franchising body or corporation. They will often need to get approvals to do certain types of advertising. Other franchisees will be required to make advertising arrangements with the other franchisees in their area. For example, NAPA franchises in Phoenix will get together to create a marketing campaign for the Phoenix area. Other times they will make agreements to do their own marketing, but only after a specific date scheduled by the other franchises in the area or the corporate office.

Many franchisees will bring up compliance in advertising. make sure they understand that our art department will work with their compliance department to ensure all elements of the advertisement meets their expectations. Furthermore, businesses can send in their own ads, so that is always an option. Don’t give up on a franchise. They may lead to a big sale if you work things effectively. Working with a franchisee may work itself into a city-wide, state-wide, or national lead. 

You can  give your customer’s this link to learn more information about the VA and Franchises: www.sba.gov/content/franchise-businesses


Have you ever thought about starting a B2B franchise? B2B, short for business-to-business, is a sector of franchising that’s a bit under the radar. That’s because these franchises are not as visible as food or retail franchises. But their lack of visibility shouldn’t be a deterrent. In this post, I’m going to introduce you to the world of B2B franchising, and show you why, for the right person, these franchises may be worth a look.

Example of a B2B Franchise
Sales-driven at their core, B2B franchises are the ones that make things happen. Here’s an
example of what I mean. All of us get mail. We receive bills, invitations, and of course, advertisements. And for the most part, most of the advertisements we get go into the garbage or recycling bin. But there’s one type of advertisement that tends to get our attention, because it’s different than the others. It’s the envelope.

This envelope is stuffed with ads from local businesses offering products or services at a
discount. For example, you may find an advertisement from a local heating and air conditioning company offering a furnace check-up at a discounted price. Another example might be an advertisement from a new workout place that just opened, offering “Grand Opening” specials. You get the idea. But, do you know who owns the company
that send those envelopes out? Your neighbor.

That’s right — the Direct Mail company sending the ad-stuffed envelopes out is most likely a franchise business, and it’s usually owned by someone in your community.

The Role of a B2B Franchisee
In essence, a B2B franchise business is a sales business. And the role of the franchisee is one of business development. Let’s get this out in the open. If you’re in business development, you’re in sales. That’s right — you’re a salesperson. Let me show you what I mean.

A while back, I wrote about franchise businesses that deal with the impact of natural disasters, like hurricanes and tornadoes. Do you know how franchise owners of these businesses get their customers? Franchisees of disaster clean-up and restoration companies call on local insurance agents, fire departments etc., to create referral relationships. That’s because referrals are what drives their businesses. And those referrals turn into customers.

How Much Are B2B Franchises?
One of the more attractive things B2B franchise opportunities bring to the table has to do with cost. B2B franchises have some of the lowest upfront investment requirements of any franchise business sector. For instance, if you felt that a business coaching or business consulting franchise suited you, your upfront investment would be under $100,000, in most cases. However, if you later found out that franchises like those just mentioned were not suitable, and you ended up having to close your business down, that “low” investment probably wouldn’t feel so low.

One more thing. There are several B2B franchises that cost well over $100,000. Sign businesses are one example, and some of the retail businesses that require aggressive business development activities can cost $200,000-$300,000 or more.

Are You a Fit to own/run a Franchises?
While a low-investment franchise business opportunity can be attractive, in order for it to be a successful franchise business, you need to have the right skill-sets. In the case of a franchise, you’ll need to be:

  • Highly Organized
  • Aggresive
  • Persevering
  • Energetic
  • A Proven Leader

In other words, if you’ve never made cold calls, or face-to-face sales presentations and the like, a franchise won’t be a good fit. But if you are a strong salesperson, with a can-do attitude, and you like to win, a franchise could end up being a wonderful fit.

For more information on Franchises and the SBA, you can direct your customers to https://www.sba.gov/blogs/contributors/FranchiseKing