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Know the Value Associated with your Franchise

To know the VALUE there are 4 areas to research.  Let’s take a look.

When you are trying to determine the value associated with your franchise, it is important to consider everything involved. Sometimes key areas are unaccounted for. We will look at four of these areas to see the effect they can have on the worth of your franchise, and whether it is something you can advocate for. Negotiating terms can help make the most of your franchise dreams. But if you push too far, you may squeeze yourself out of the deal and have the franchisor looking for an easier partner to work with.

Marketing and your franchising fees:

Most often, franchising and marketing fees are non-negotiable. It would be a disadvantage to the parent company to have a sliding scale. It would be a legal headache, not to mention that it could anger franchise owners who paid top dollar for the same thing the bargain hunter scored for the same franchise model. Instead, be glad that you will be receiving advertising resources and reach that most small businesses can only dream of. A household name makes people trust what they are getting and it’s one of the reasons you were willing to splurge.



When it comes to suppliers, it only makes sense that most franchises have restricted suppliers. People expect consistency in the products and services they get from a franchise business. There’s a huge advantage to it for you, too. A vast amount of time can be saved by not having to shop around! But that does not mean that there isn’t a little wiggling room in some supplier negotiations. This could mean a discussion about volume discount or price guarantees. See what they are willing to bend on, and how to make it work for you.


Franchisors will let you know if they do not guarantee a protected territory. But even if they do, this is one of the most important areas you can and should fight for. It can make the difference between having a corner on the market in or becoming just another fish in the overpopulated sea. Not only is it worth arguing over, it is often one that the company is most flexible on. The term ‘choose your battle’ was meant for this category.


Manufacturing Restrictions:

While there is little control a franchisee usually has on manufacturing restrictions, it is important to know what they are before entering into a business deal. Make sure the restrictions are not so restrictive that you feel you cannot make a buck or two in your business. Often these are set at government level and can change from year to year. It is something worth keeping an eye on.


Owning a franchise can be a great way to be your own boss while reaping the benefits of an experienced and successful business. There is a built-in brand awareness and customer loyalty. But with upfront costs and required fees, it is important to make sure that you get what you are paying for. Make sure you do your research and talk to other franchise owners about their experiences. Advice can come in handy if you are the newest kid in town. Listen to what they say and learn from their mistakes. Owning a franchise can prove to be a valuable and profitable experience. Understand the value of your business and how to maximize your say.

The experts at Franchise 360 will walk you through the process of becoming a Franchisor.  Franchise 360 works with businesses in the Toronto, Oakville, Mississauga, Burlington, Milton and surrounding GTA to provide solutions to your long term goals.

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