Real Estate Franchise Opportunity Search

Doing your homework to find your perfect real estate franchise

The first thing you need to keep in mind during your franchise research is that you probably won’t find the right fit immediately. However, sometimes the right fit comes along the first time. Have an open mind as you go through the process and allow our highly skilled franchise consultants help you. We are here to work in your best interest and giving you ideas and suggestions that you might have never realized.

During the process we can help you save a lot of time if it’s unlikely that the franchise you’re seeking is a viable option. Sometimes there maybe territory restrictions, saturated markets, protected territories, and many other situations you probably will not be aware of going in.

If either party comes to the conclusion that this is not the right match, they simply inform the other party and move on.

Step 1 – General Information
The franchisor and their representatives will begin by providing you an overview of information on their company. They will then find out your needs, wants, and desires. Sometimes it might take several meetings for them to get to know you and your company and you to get to know the franchisor better.

What the franchisor is trying to figure out is if you and your company have the general characteristics they are looking for along with the financial qualifications.

Step 2 – The Franchise Disclosure Document or Uniform Franchise Offering Circular
This document, commonly referred to as the Franchise Disclosure Document (FDD), formally known as the Uniform Franchise Offering Circular (UFOC), is the Federal Trade Commission mandated disclosure document that gives you a wealth of information about the franchisor. This document is to protect you, the potential franchisee. It should help you move through the process. Study it carefully. While it includes some information about your contract, don’t rely on it alone to understand your contract. Read the entire FDD document carefully. Buying a franchise is a very complicated investment. Take your time to decide.

Prior to any financial disclosures, the franchisor usually instructs their sales team not to discuss any financial information. The major subject areas covered in this document include, but not limited to:
  • Franchise Agreement, Exhibits
  • Financial Statements
  • Names and Addresses of Existing Franchisees
  • List of Terminated Franchisees
  • List of State and Federal Agency Personnel
  • List of Agents for Service of Process
  • Form of Promissory Note
  • Franchise Term Note
  • Table of Contents – Operations Manual
  • State Laws Requiring Licensing of Real Estate Brokers and Agents
  • Agreement Regarding Use of Domain Name
  • Small Market Addendum
  • State Addenda and Amendments
  • Trademarks
  • Territory
  • Litigations
  • Initial Franchise Fee
  • Other Fees
  • Franchisor’s Obligations
  • Franchisees Obligations
Real Estate Franchisors typically do not include any earnings claims in their FDD document or verbally. They are not required to do so.

After carefully reviewing the FDD document with you, we will note specific questions or issues that the material raises for further discussion with the franchisor.

Step 3 – Franchisee validations
The most valuable information source can be existing franchisees. You will need to get a list of recently franchised companies, companies that have been franchised for more than three, but less than five years, and franchised companies that are within two years of their expiration. You need to plan on visiting or calling a number of these existing franchisees during your investigation process to find out their likes as well as their dislikes. Visiting with a number of current franchisees will give you a good sense of the prevailing attitudes towards the franchisor.

Step – 4 Review the tools and systems in place
Franchise companies typically will have documented their tools and systems in some kind of power point presentation, marketing materials, or CD – ROM that you can take with you. Having this information will help you to evaluate their offerings of all the major benefits of doing business with them.

Step – 5 Meet the Franchisor
During some point in the process of your investigation, you will want to have a face-to-face meeting with key personnel of the franchise company such as the President or other officers of the company. This can usually be done in your office or local market or even sometimes you may need to travel to the headquarters to do a “V.I.P.” tour or an “Introduction.”

During this meeting you can find out details about who will be providing the operational support and training directly to you and your business. Usually franchisors will have Business Consultants, Specialized Trainers, Technology Experts, and other people that will help you grow your business.

Step – 6 Make a Decision
After the above steps are complete then you’re ready to make a decision. This entire process can take anywhere from two to six weeks to complete. Now we can help you determine if this is the right franchisor for you.

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