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Phone Number(001) 617.396.4436

Frequently Asked Questions


How can this be a Free Service?

Our services are completely free to consumers. We are paid fees by franchise companies because they appreciate the education, qualifying and pre-screening that we provide our clients. The price of the franchise to you is exactly the same, whether you use this service or not. Franchise companies cannot, by law, surcharge you when you use a consultant nor can they offer you a discount when you don't.

The consulting process that we follow with our clients creates a solid match between the various franchise companies that we recommend – and our clients. Because of this, the franchise companies want to talk to our clients. You will be afforded priority status with them.

Why should I use a Franchise Consultant instead of contacting Franchise Companies directly?

If you choose to take advantage of our expertise and counsel, and use our proven franchise selection and investigation process, it will save you time and money -- while also helping you avoid making costly mistakes. In addition, our years of experience and careful pre-screening of franchise companies will help you understand why certain opportunities are better than others.

We will show you the safer and most attractive business opportunities. If you have never evaluated a franchise company before, you will quickly see it can be an ominous task. It is easy to lose your objectivity without the guidance of an experienced person who is NOT beholden to any one franchise company.

With so many variables involved, how will you help me find the right “Fit?”

In 2006 the Personal Franchise Profiling System was created by Matchpoint, developed after thousands of hours of dedicated research in the Franchise field since 2004. The Matchpoint Personal Franchise Profiling System is a unique and sophisticated profiling system which helps individuals narrow the playing field to only those Franchise systems that offer you the best opportunity for success.

Our consultants will guide you through a very thorough and proven process – designed to help you first assess and document your skills and goals -- then to pre-qualify the types of business models you want to work with – then to match you to franchise businesses within these models. They will obtain your responses to a great number of questions, such as:

  • What characteristics are important to you in a business? Hours, number of employees, physical plant, office location, etc.
  • What kind of business would excite you?
  • What would you really like to do “day in, and day out, 40 to 60 hours a week?”
  • What are your strengths and weaknesses in operating a business?
  • What kind of experience, training and education do you have?
  • What role do you want to play in the business? Sales? Operations? Marketing? Management? Customer Service?
  • How would you like to finance your business – and what more do you need to know to do this?
  • Are you seeking a one-level or a two-level system? Would you prefer an opportunity that affords multiple locations? – An established system, or a new system? A new territory or a resale territory? And do you know the advantages or disadvantages of each choice?
  • How soon do you want to be open for business?
  • Do you want a partner? Are you planning on investors?

With this information and more, we will be able to guide you and suggest franchise opportunities that match up well with what you seek in a business. With the thousands of franchise opportunities available today the search can be almost overwhelming. We have done a great deal of the work for you. We have carefully pre-screened hundreds of franchises, and determined the best opportunities. We have companies in fast food, specialty food, retail, business to business services, home based, serviced oriented, auto aftermarket. Opportunities range from $50,000 to several million dollars.

Why buy a Franchise?

Quite simply because it offers:

  • a proven method of doing business
  • experts from the franchise company providing day to day advice and assistance
  • proven marketing and advertising programs
  • a solid business plan
  • excellent training
  • ongoing support

This all adds up to a reduced level of risk and a higher level of success. The bottom line is you can be in business for yourself but not by yourself.

More and more people are seeking ways to gain greater control of their lifestyle and income...and for qualified individuals, owning one’s own business is a proven method of achieving this control. Many employees have discovered that large corporations are not the haven of mutual loyalty, secure employment, consistent pay raises, and “family oriented” support that they once were. Perhaps you have found this to be true in your life. For many folks, “being one’s own boss” is a better alternative to the growing uncertainty found today in corporate America.

What financial assistance is available?

Financing doesn’t have to be a daunting subject -- there are many resources available to you (SBA Loans, 401K Rollover loans, Home Equity Lines of Credit just to name a few) to raise the amount of investment capital you will need. But because the subject of financing is so broad and so important, we recommend you discuss this first, in general, with your consultant – then allow your consultant to introduce you to experts who can provide specific assistance.

How much cash do I need?

Each franchise company’s requirements are different but the minimum requirement to qualify for lower priced franchise opportunities tends to be $20,000 liquid and $100,000 net worth. Few people pay cash for a new business. Typically a business loan is obtained. Our experienced consultants will explain all of your financial options.

What is the Franchise Disclosure Document?

The Franchise Disclosure Document (referred to as the FDD or “disclosure document” - used to be called the UFOC) is the document that a franchise company is required by law to give to a prospective franchise buyer before the franchise can be purchased. This document covers information regarding the franchisor, its management, its financial history, and the material terms and conditions of the Franchisee/Franchisor relationship. It must explain to you all the initial costs of the franchise, the costs to start the business, any litigation the company has in its history, it must disclose the names and phone numbers of its existing owners, as well as past owners. The FDD was created to establish a consistent and uniform format for disclosure throughout the United States. Its intent is to provide a prospective franchise buyer with a good deal of information with which to make an informed decision. Our experienced consultants will help you better understand information supplied in the FDD. In addition, they will help you plan and organize calls to existing franchise owners for an even more thorough understanding of the business, before you make any decision.

How soon can I get my business started?

Here are some timing factors you should take into consideration:

  • When do you want to open your business? If your business is cyclical, you’ll want to take advantage of peak seasons.
  • If you need financing, where will you get the money? How long will it take?
  • How frequently does the Franchisor conduct the initial training program? Does it have an enrollment deadline? Can you get into the class you want?
  • Do you have personal commitments or family conflicts that may affect your target opening date?

Unless you already own a suitable building, have existing office space, or are buying a home-based business, you will need to find a location for your franchise. The Franchise Agreement will include specific requirements regarding site selection and many even have relationships with real estate companies or in-house real estate departments whose jobs are to help you find locations.

Will my personal or financial information be sold to anyone?

Absolutely not – this information cannot by law, be shared with or sold to anyone without your sole permission.

When will you send my information to a Franchisor?

Only when you have authorized us to do so.

 

Franchising Terminology

 
To be able to conduct an intelligent evaluation of any franchise – you need to “know the lingo.” Every industry has its terminology, and franchising is certainly no different. So we’re going to start you out “easy.” Here are the 10 most important terms you will need to know before you buy. Then – read on! 
 
Franchise: The legal rights (the surrounding trademarks, copyrights, franchise operating system, support, training, product or service) a Franchisee obtains from a Franchisor under a franchise agreement to operate within a designated contract period as their business. 
 
Franchisee: The person, partnership or company who pays the Franchisor for the right to own and operate a business using the Franchisor’s marks and system. 
 
Franchisor: The person, partnership or company that controls the overall rights to the franchise. 
 
Franchise Agreement: A non-negotiable contract, per FTC regulations, between a Franchisor and a Franchisee in which the Franchisor grants the Franchisee certain legal rights to use the Franchisor’s marks and system in connection with a business to be independently owned and operated by the Franchisee. 
 
Capital Required: The amount of money a Franchisee will need to ramp up their franchise business during the start-up phase (average 3 to 15 months) to the point of producing a profit. 
 
Exclusive Territory: This is the region or area a Franchisee will have exclusive rights to operate within. It is generally defined and mapped in terms of targeted households or population. 
 
FDD: An acronym for “Franchise Disclosure Document" (formerly called the UFOC-"Uniform Franchise Offering Circular”) -- an extensive legal document required for the US and some other countries that provides you with “all you need to know” about a particular franchise. Regulated by the FTC in the US, the FDD contents must be disclosed to potential buyers before purchase. If you have questions about any of these terms, make a note, and ask your consultant to explain it to you. 
 
Liquidity: The total cash available to a franchise owner for business operation or living expenses. 
 
Net Worth: Your assets (i.e., the cash value of all you own) minus your liabilities (i.e., what you owe). 
 
 
Royalty Fee: An ongoing fee paid to your Franchisor for support services received through the life of your contract – usually a percentage of gross income or a flat 
monthly fee. 
 

Other commonly used terms:

Acknowledgement Of Receipt: This is a page signed by prospective franchisees upon receipt of the FDD, and then returned to the franchisor, as proof that the franchisor delivered the FDD on a particular date. 

Advertising Fee: A franchise agreement may request a contribution by each franchisee to an “advertising fund.” This is a periodic fee to fund specific advertising and 
marketing program development for the franchised business, such as artwork for ads or coupons, radio spots, etc. It does not replace local marketing efforts by the franchisee. It may be based on a percentage of the franchisees’ revenues (typically less than 3%) or a flat fee. It may be due weekly, monthly, quarterly or  annually. 
 
Affiliate: A business entity that is controlled by the franchisor, or that controls the franchisor, or that is under common control with the franchisor. 
 
Approved Supplier: A supplier of products and services is approved by the franchisor to provide products or services to its franchisees. A franchisor may designate itself or its affiliates as approved suppliers. Franchisee may sometimes be required to purchase certain products or services only from approved suppliers. 
 
Arbitration: Arbitration is a form of dispute resolution in the event of a disagreement between the Franchisee and the Franchisor, and is normally chaired by a 
nominated individual or independent third-party. The Franchise Agreement may or may not provide for arbitration between the parties to the Agreement. 8 2007 MatchPoint Network, Inc.
 
Area Development Agreement: A term that refers to the specific agreement provided for multiple unit or territory purchases of a particular franchise. Generally, an ADA will allow a prospective Franchisee to purchase several units – but not have to open all of the units or territories at once. With a cash deposit, the Franchisee can 
“hold” the units, and then open them at a designated time in the Area Development Agreement – usually 12-15 months after the opening of the prior unit. 
 
Assignment: The sale of a franchise by one Franchisee (assignor) to another (assignee) is called an “assignment.” In most FDDs, the Franchisor designates an “assignment fee” that must be paid by the original franchisee – which is then used by the Franchisor to train and induct the new Franchisee. 
 
 
B-2-B: An acronym for “Business to Business.” Used to describe a type of franchise whereby a Franchisee offers products or services of use to other businesses, not to consumers. 
 
Business Opportunity: A term used to describe a non-regulated business offering. Buyers should be beware that these offerings are not protected by FDD compliance laws. 
 
 
Capital Required: The amount of money a Franchisee will need to ramp up their franchise business during the start-up phase (average 3 to 15 months) to the point of producing a profit.
 
Company-Owned Units: Units (or territories) of a franchise that are owned by the Franchisor.  Such units allow the Franchisor the ability to test new ideas and products without detriment to the overall operation of a particular franchise. Usually these units are required to contribute to an advertising fee or any such group expenses. 
 
Consumer-Driven: a term that is often applied to franchises that appeal only to consumers rather than businesses. Same as B2C, or “Business to Consumer.” 
 
Conversion Franchise: When a franchisor purchases a business or existing franchise with the intention of converting that business to a “newly-fitted” franchise  business. Some printing franchisors, for example, use this model to convert older, offset printing businesses to new, digital printing franchises. 
 
D 
 
Default: The failure of the franchisor or franchisee to perform according to its obligations under the Franchise Agreement. Either party is said to be “in default” with regard to their agreement. 
 
Disenfranchise: The withdrawal of the franchise by the Franchisor from the Franchisee. This is likely to occur when there have been persistent breaches of the
Franchise Agreement by the Franchisee that have been brought to the Franchisee’s attention, and have not been resolved. 
 
Disclosure Document: See “FDD.” 
 
Disclosure Laws: In the US (and a few other countries) there are state and federal laws that require franchisors to provide certain information to prospective franchisees before they sell them a franchise. Check with your consultant to see if there are disclosure requirements in your country.
 
Dispute Resolution: A mechanism provided in a Franchise Agreement for Franchisors and Franchisees to deal with disagreements, should they occur. Not quite 
the same as arbitration – usually precedes arbitration and is designed to resolve issues before they require legal intervention. 
 
E 
 
Earnings Claim: Any information that a franchisor provides to a prospective franchisee from which a specific level, or range, of actual or potential sales, costs, income or profit can be easily ascertained relating to franchised units or company-owned units. 
 
Exclusive Territory: This is the region or area a Franchisee will have exclusive rights to operate within. It is generally defined and mapped in terms of targeted 
households or population. (Note: Not every franchise offers this right, but many do.) 
 
Expiration: Used to describe natural end of a franchise agreement term.
 
 
FDD: An acronym for "Franchise Disclosure Document" (formerly called the UFOC-"Uniform Franchise Offering Circular") -- an extensive legal document required for the US and some other countries that provides you with "all you need to know" about a particular franchise. Regulated by the FTC in the US, the FDD contents must be disclosed to potential buyers before purchase. If you have questions about any of these terms, make a note, and ask your consultant to explain it to you.
 
FDD Guidelines: The instructions and other requirements issued by NASAA (and approved by the FTC) to Franchisors for preparing a FDD.
 
Federal Trade Commission (FTC): The Federal agency in Washington, D.C. that regulates franchises in the US.
 
Franchise: The legal rights (the surrounding marks, system, support, training, product or service) a Franchisee obtains from a Franchisor under a franchise agreement to operate within a designated contract period as their business. 
 
Franchisee Advisory Council: The Franchise Agreement may provide for the formation of a Franchise Advisory Council -- with Franchisees assuming the role of assisting the Franchisor with certain group decisions. 
 
Franchise Agreement: A contract between a franchisor and a franchisee in which the franchisor grants the franchisee certain rights to use the franchisor’s marks and system in connection with a business to be independently owned and operated by the franchisee.
 
Franchisee: The person, partnership or company who pays the Franchisor for the right to own and operate a business using the Franchisor’s marks and system. 
 
Franchise Fee: Often referred to as “initial franchise fee.” This is a one-time, up-front payment by the Franchisee to the Franchisor for the rights to a franchise. This fee is due and paid once the Franchise Agreement is signed, is generally non-refundable, and precedes final payments. 
 
Franchisor: The creator of a franchise system. The party to a franchise agreement who grants prospective Franchisees the right to use the Franchisor’s marks and system. 
 
 
Goodwill: A term used to describe the value of trade already established in a particular business that is likely to continue to the benefit of the new business owner.
 
H-I 
 
Intellectual Property Rights: Trade marks, service marks, know-how and copyright. These often form an important component of the franchise system. Initial Investment: The minimum amount of money generally required to begin operating a franchise. This amount typically includes the initial franchise fee, any required purchases from the franchisor, and all other common costs and expenses involved in starting up a franchised unit. Most Franchise Agreements provide an estimated range of investment costs, taking geographic variances into account. 
 
Initial Training: The formal instruction the Franchisor provides its Franchisees in terms of operating the system. Generally includes (at minimum) a comprehensive review of operations manual, training on scheduling and/or financial software, marketing and advertising, and legal requirements. 
 
J-K-L 
 
Lease: A rental contract for a retail space. 
 
Licensee: See Franchisee or Master Licensee. 
 
Liquidity: The total cash available to a franchise owner for business operation or living expenses. 
 
 
Marketing Fee: See “Advertising Fee.” 
 
Marketing Manual: A manual of information often provided to guide a new franchise owner in how to promote and effectively market their products or services into the community. Traditionally, such manuals will provide bromides of forms and posters to be used, together with details of how to monitor performance of the promotions conducted. 
 
Marks: The trademarks, services marks, logo, trade dress, and other commercial symbols the franchisor grants the franchisee the right to use in the operation of 
their franchise. 
 
Master Licensee: The person to whom the franchisor grants exclusive rights to offer and sell franchises within a particular territory using the franchisor’s marks and 
system. Sometimes called a “master, or sub-franchisor.” 
 
Multi-Unit Franchise: A Franchisee that owns more than one unit. Multi-unit owners are often the strongest operators in a franchise system – plus, a system with many multi-unit operators is one that is likely performing quite well. 
 
Multiple Franchisors: Franchisors offering more than one franchise concept.
 
N 
 
NASAA: The North American Securities Administrators Association, which prepares the FDD Guidelines to facilitate compliance with state franchise registration and disclosure laws. 
 
Net Worth: Your assets (i.e., the cash value of all you own) minus your liabilities (i.e., what you owe). Most franchise companies have minimum net worth requirements to prohibit buyers from overextending. 
 
O 
 
Offer: A verbal or written proposal to sell a franchise to a prospective Franchisee upon understood general terms and conditions. 
 
Opening: The time when a franchised unit first opens for business. 
 
Operations Manual: The “handbook” a Franchisor provides to its Franchisees in printed or electronic form about the in-depth operations of the franchised business. 
 
Owners: The individual owner(s) of a franchise that is a legal entity such as a corporation, general partnership, limited partnership, or limited liability company. 
 
 
Predecessor: Any person from whom the Franchisor obtained most of its assets. 
 
Public Figure: Any celebrity or well-known figure who endorses a franchise or whose name or image appears in the franchise name or symbol. 
 
Q-R 
 
Registration: The process of officially filing with state franchise regulators certain specific information and forms required by state law. In many states with franchise registration laws, registration is not effective until the franchisor’s application is approved by the state franchise regulators. 
 
Registration Laws: State laws that require franchisors to register the franchise with the state before making any offer or sale of a franchise in the state. 
 
Relationship Laws: State laws that govern the relationship between franchisors and franchisees, such as laws that limit the grounds for which a franchise can 
be terminated. 
 
Renewal: The extension of the term of an expiring franchise, or the granting of a new franchise upon the expiration of the old one. 
 
Royalty Fee: An ongoing fee paid to your franchisor for support services received through the life of your contract – usually a percentage of gross income or a flat 
monthly fee. 
 
 
Service Mark: A distinctive name or symbol used to identify the franchisor’s services and to distinguish them from the services of others. 
 
 
Term: The time period during which the franchise agreement will be in effect. 
 
Termination: The premature ending of the term of a franchise agreement by one of the parties to the agreement. 
 
Trademark: A distinctive name or symbol used to identify the franchisor’s products and to distinguish them from the products of others. 
 
Transfer: The sale or other transfer of the ownership of the franchise agreement, the franchised unit, or assets of the franchised unit from the franchisee to another 
person. 
 
 
 
U-V-W-X-Y-Z

 

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