Question 1

What is a franchise?

Accepted Answer

A franchise is a business model where you operate under an established brand, using its proven systems, processes and support — while owning your own business.

Question 2

Do I really own the business if I buy a franchise?

Accepted Answer

Yes. You own your own company (usually a corporation or LLC), and you operate it under the franchisor's brand, standards and guidelines.

Question 3

How much does it cost to buy a franchise?

Accepted Answer

Investments range from under $50,000 to well over $1 million, depending on the industry, the model (home-based versus bricks-and-mortar) and your growth plans.

Question 4

What is a franchise fee?

Accepted Answer

A one-time upfront fee paid to the franchisor for training, brand access, systems and launch support — effectively the entry fee to the business.

Question 5

What are royalties?

Accepted Answer

Ongoing fees, usually a percentage of revenue or a flat monthly amount, paid to the franchisor for continued support, systems and use of the brand.

Question 6

Are there franchises with no royalties?

Accepted Answer

Yes. Some models — vending, licensing and certain service concepts — carry low or no ongoing royalties, but the support structure is usually lighter as a result.

Question 7

Do I need prior industry experience?

Accepted Answer

In most cases, no. Many franchises are built for owners with business, sales or leadership experience rather than technical expertise — the system supplies the know-how.

Question 8

Can I keep my full-time job?

Accepted Answer

Often yes. Semi-absentee and executive models let you hire a general manager and oversee the business, though you still need dedicated weekly time to manage the manager and review the numbers.

Question 9

What industries are most popular in franchising?

Accepted Answer

Home services, property management, health and wellness, senior care, pet care, fitness, children's education, and food — particularly simplified or non-traditional food concepts.

Question 10

How long does it take to open a franchise?

Accepted Answer

Anywhere from 30 days to 12 months or more, depending on the model, build-out requirements, licensing and your own timeline.

Question 11

How long before a franchise becomes profitable?

Accepted Answer

It varies widely. Some service franchises cash-flow within months; others take 12 to 24 months or longer. Capital planning matters more than optimism here.

Question 12

What is an Item 19?

Accepted Answer

Item 19 is the section of the Franchise Disclosure Document that may include financial performance representations, such as average revenues or profitability of existing units.

Question 13

What is a territory?

Accepted Answer

A territory defines where you may operate and market. Territories can be geographic, population-based, or contractually protected — the definition matters more than the size.

Question 14

What is a Discovery Day?

Accepted Answer

A virtual or in-person meeting with the franchisor's leadership team. You learn how the brand really operates, and they assess whether you are the right candidate.

Question 15

How do I know if a franchise is a good investment?

Accepted Answer

Through proper due diligence: reviewing the disclosure document, speaking with current and former franchisees, understanding total costs and timelines, and checking the model against your own goals.

Question 16

What support do franchisors provide?

Accepted Answer

Typically training, marketing systems, operations manuals, technology, coaching and ongoing guidance — though the depth of support varies a great deal by brand.

Question 17

What are the biggest risks in franchising?

Accepted Answer

Under-capitalisation, picking a model that does not fit your lifestyle, weak territory selection, and not following the system you paid for.

Question 18

Can I sell my franchise later?

Accepted Answer

Yes. Most agreements allow resale, subject to franchisor approval and a transfer fee. Build the exit into your plan from the start.

Question 19

Is financing available for franchises?

Accepted Answer

Yes. Common paths include government-backed small business loans, retirement rollover funding, conventional loans, franchisor financing and partner investment.

Question 20

How do I know how much I can fund?

Accepted Answer

Start with our funding readiness estimate, then pre-qualify with a funding partner. Knowing your realistic range first stops you falling for a concept you cannot comfortably finance.

Question 21

Why work with a franchise consultant?

Accepted Answer

A consultant helps you clarify your goals, compare brands objectively, navigate due diligence and avoid expensive mistakes — at no cost to you.

Question 22

How is FranchiseFuel paid?

Accepted Answer

Franchise brands pay a referral fee when a placement is made. The fee is comparable across brands, so there is no incentive to steer you toward one concept over another.

Question 23

What happens to the information I share?

Accepted Answer

It is stored securely, used only to advise you and introduce you to brands you approve, and never sold. You can withdraw consent at any time under PIPEDA/CASL in Canada and applicable US state privacy laws.

Frequently asked franchise questions

Franchising basics

Is it right for me?

Due diligence & documents

Funding & working with us

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