Watch Tom Spadea's interview by Rob Bennett, a co-founder of the franchise consultancy firm FranFinders.
Franchising is a get-rich-slow, exponential growth strategy. It takes some time to take root and the first few years require patience and investment. You are setting your business up for explosive future growth by planting the seeds of success for the next generation of outlets. If you study exponential growth in business, science, and nature, there are a myriad of examples of explosive exponential growth curves. Franchise success stories follow those curves.
Many prospective franchisees, and--quite frankly--many franchisors, are confused as to the difference between the FDD and the Franchise Agreement.
This is one of the most important and difficult questions for any business owner to answer. The value of a business is based on its future cash flow, which usually can be predicted from historical results of sales and profitability. Buyers don’t care how much you spent yesterday, they care how much they can make tomorrow. Ultimately your business is worth what someone will willingly pay. A common mistake owners make is that they believe their business is worth what they have invested in it, that is rarely true.
Unless you already have a buyer, such as a fellow franchisee, a key manager, or a family member, then you should use a business broker.