If you’re looking to become a franchise consultant, Transworld can help you to make that goal a reality. Franchising is an exciting industry, and by becoming a franchise consultant you’ll be able to help small business owners to turn their single businesses into franchise empires. But before you can become a franchise consultant, you’ll need to become a Transworld franchisee yourself. Here are a few key terms you should understand both as a prospective franchisee, and as a future franchise consultant.
Disclosure Document
The disclosure document provides potential franchisees with detailed information about the performance of the company they’re thinking of franchising with. Information on the number of locations, rate of growth, and more is included in the disclosure document. The disclosure document also outlines exactly what is expected of franchisees in terms of fees, royalties, and more. Be sure you review your disclosure document carefully before signing any agreements, and ask for help if there are parts you don’t understand.
Franchise Fee
As you’ll learn when you become a franchise consultant, the franchise fee is an important part of any franchise agreement. This one-time, lump sum paid at the time the franchise agreement is signed helps franchisors to defray some of the costs associated with on-boarding new franchisees. Some of these costs include developing training programmes, helping them to find a great location, and setting them up with important resources. At Transworld, some of the resources we provide to our new franchisees include help with attaining the proper licenses, start-up support, and initial training.
Total Initial Investment
The term “total initial investment” or “total investment” refers to the estimated costs associated with getting your business up and running. This figure usually includes many of the anticipated costs of opening a new business. At Transworld, the total initial investment figure you’ll be quoted will include considerations such as your travel costs to attend your initial training, the modest franchise fee, costs associated with licensing, and so forth. Franchisors will often do a background check to ensure that you have the financial resources in place to pay your total initial investment comfortably.
The franchising industry is full of its own jargon, these are just a few examples of phrases that are commonly used in the industry but may be confusing to newcomers. At Transworld, we want the franchising experience to be as simple for our future franchise consultants as it will be for the businesses they’ll work with. Reach out to us today to learn more if you’re ready to become a franchise consultant.
