How a Franchise Agreement and a Franchise Disclosure Document differ
There are two documents that are of vital importance...
There are many business opportunities available for franchises in Canada. When deciding what franchise to invest in, many prospective business owners want to know what kind of support they can expect from their franchisor.
The level of support from your franchisor will have a meaningful effect on your success and satisfaction. Some people work better on their own, building a structure and system that works for their personal style. Other people may want more guidance and structure based on the successful systems the franchisor has used in the past.
It is important to decide how much support you need in areas like sales, purchasing, marketing etc...then you can further analyze the franchises that interest you. Websites such as buythatfranchise.ca and betheboss.ca are full of detailed information about many of the franchises in Canada. It will pay dividends for you to thoroughly research the franchises you may be interested in, and there is plenty of free information available online.
Learning all you can about how a franchise works and supports their franchisees is critical to see if the opportunity is the right one for you. Speaking with current franchise owners is a great way to learn about the support system the franchisor has in place.
One thing to look for in a potential new franchise is if the franchisor has a separate service department for their franchisees. Some franchisors will try to help you along with the end user, and they may do a good job for you, but it is a very good sign if they have a division or a team dedicated specifically to helping their franchisees.
Another aspect to investigate is whether franchisor support is directly tied to your initial investment level, and if there are ongoing optional or mandatory fees for various levels of continued support. This information should be readily available in the Disclosure Documents that many franchisors will provide their prospective franchisees.
The bottom line is that many of the franchises in Canada offer sound business opportunities, but the level of ongoing support will vary greatly, and come with different costs. Good research and analysis before you purchase a franchise is the key to building a business with the right franchisor for you.
