How to Evaluate Franchise Opportunities - Part 2

In this video of our series on evaluating franchise opportunities, Jeffrey M. Goldstein of the Goldstein Law Group looks at the initial cost of franchises, as well as the ongoing royalties that you will have to pay to the franchisor.

The first fee that we will discuss are the advertising fees, be they local or national. A franchisor understands that a franchisee understands their market best on a local level. so they may require a certain set fee or a percentage that must be spent on local advertising efforts. A franchisee could also have grand opening costs, which can be several thousands of dollars or more. If you have a grand opening, you would want to have a grand opening advertising campaign that may require radio, print, and/or tv in some markets.

It's also important to look at business and operating costs. There may be licenses that are required, healthcare, or building permits. There should be an analysis of the products or service supply costs. Whether there is going to be a competitive market for those upstream supplies, paper products, or food supplies. You should look at how much you are going to be charged with respect to a lease, or how much your loan payments will be if you purchased the property.

There are costs for the computer systems that you use, as well as the maintenance and tech support for that computer system. There are training costs, sometimes you will have to purchase training services from the franchisor. Financial account advice may also be needed in order to make sure that your financial books are in order. There are different kinds of insurance that are needed depending on the kind of franchise that you are in.

To learn more about reviewing franchise offers, and to see if Goldstein Law Group is right for your business, please visit our website: goldlawgroup.com/franchise-agreement-review/?ut…

Lawyers for Franchisees
Jeffrey M. Goldstein
The Goldstein Law Group
goldlawgroup.com/?utm_source=youtube.com&ut…
[email protected]
202-293-3947