100 Franchise FAQs

This collection of 100 Franchise FAQs covers everything you need to know about:

• Franchise Business FAQs
• SBA Franchise Loan FAQs
• Franchise Disclosure Document FAQs
• Running a Franchise FAQs

Whether you’re exploring opportunities or already a franchisee, these FAQs will guide you through every step of your franchising journey. And check out all of our franchise and franchise loan tools, epubs and articles. Here are few:

• How to Buy a Franchise Epub
• Franchise Loan Calculator
• SBA 7a Loan Calculator
• In-Depth SBA 7a Loan Guide
• SBA 504 Calculator
• In-Depth SBA 504 Loan Guide

We have done more than 900 franchise loans for over $500M as a top 20 SBA loan bank. Get in touch to get all your franchise questions answered today!

1. What is a franchise business?

A franchise business operates under the brand and system of an established company. Franchisees pay fees to the franchisor in exchange for training, support, and the right to use the brand. This model allows entrepreneurs to leverage a proven business system while benefiting from the franchisor’s expertise and resources.

2. What are the benefits of owning a franchise?

Franchises offer a lower-risk way to start a business by providing a proven business model, brand recognition, and ongoing support. Franchisees also benefit from established marketing strategies, training programs, and operational guidance. These advantages can help new business owners avoid common pitfalls and achieve profitability faster.

3. What are the costs of starting a franchise?

Costs include an initial franchise fee, setup expenses (e.g., equipment, inventory, and real estate), and ongoing royalties. Depending on the franchise, startup costs can range from a few thousand dollars for home-based franchises to millions for large-scale operations. It’s important to review the Franchise Disclosure Document (FDD) to understand all costs involved.

4. How do I choose the right franchise?

Start by assessing your interests, skills, and financial capacity. Research franchises in industries you’re passionate about and evaluate their market demand, profitability, and support systems. Speak with current franchisees and review the FDD to ensure the franchise aligns with your goals.

5. What is a franchise agreement?

A franchise agreement is a legal contract between the franchisor and franchisee that outlines the terms of the relationship. It includes details about fees, territory rights, operational guidelines, and termination clauses. Carefully review this document with a legal advisor to understand your obligations and rights.

6. Do I need experience to own a franchise?

Many franchises provide comprehensive training, so prior experience isn’t always necessary. However, having business management skills or industry knowledge can be an advantage. Some franchises may require specific qualifications, especially in specialized industries like healthcare or education.

7. What are franchise royalties?

Royalties are ongoing fees paid to the franchisor, typically calculated as a percentage of revenue. These fees fund brand support, marketing campaigns, and operational assistance. Some franchises also charge additional fees for advertising or technology support.

8. Can I own multiple franchises?

Yes, many franchisees expand by owning multiple units, often referred to as multi-unit franchising. Some franchisors even offer incentives or exclusive territories for multi-unit owners. This approach can increase profitability but requires strong management skills and financial resources.

9. What is a franchise disclosure document (FDD)?

The FDD is a legal document that provides detailed information about the franchise, including costs, obligations, and financial performance. It’s required by law in the U.S. and helps prospective franchisees make informed decisions. Review it carefully to understand the risks and benefits of the franchise.

10. How long does it take to open a franchise?

Timelines vary depending on the franchise, location, and your preparedness. On average, it takes 3-12 months to complete the process, including securing financing, finding a location, and completing training. Some franchises with simpler setups may open faster.

11. What support do franchisors provide?

Franchisors typically offer training, marketing support, operational guidance, and ongoing assistance. This can include help with site selection, employee training, and access to proprietary systems. The level of support varies by franchise, so it’s important to evaluate this during your research.

12. Can I sell my franchise?

Yes, most franchise agreements allow for resale, but the franchisor may need to approve the buyer. The agreement may also include specific terms for transferring ownership. Selling a franchise can be a profitable exit strategy if the business is successful.

13. What are the risks of owning a franchise?

Risks include high startup costs, ongoing fees, and limited operational flexibility. Franchisees must adhere to the franchisor’s rules, which can restrict creativity. Additionally, the franchise’s reputation can impact your business, even if the issue is unrelated to your location.

14. What industries offer franchise opportunities?

Franchises exist in industries like food and beverage, retail, fitness, education, home services, and healthcare. Each industry has unique requirements and market dynamics, so choose one that aligns with your interests and skills.

15. How do I finance a franchise?

Financing options include SBA loans, traditional bank loans, franchisor financing, and personal savings. Some franchisors have preferred lender partnerships to simplify the process. It’s important to explore all options and choose the one that best fits your financial situation.

16. What is the difference between a franchise and a license?

A franchise involves operating under a brand’s system with ongoing support, while a license grants the right to use intellectual property without additional support. Franchises are more structured, whereas licenses offer more operational freedom.

17. Can I negotiate a franchise agreement?

While most franchise agreements are standardized, some franchisors may allow limited negotiations, especially for multi-unit deals. It’s worth discussing terms like territory rights or fees with the franchisor.

18. What is a master franchise?

A master franchisee has the right to operate and sell franchises within a specific territory. This role involves managing sub-franchisees and requires significant investment and experience.

19. What is an area developer?

An area developer agrees to open multiple franchise units within a specific region over a set period. This arrangement often comes with exclusive territory rights and reduced fees.

20. What is a turnkey franchise?

A turnkey franchise is a ready-to-operate business where the franchisor handles setup, including site selection, equipment, and training. This model simplifies the startup process for franchisees.

21. What is the role of a franchise consultant?

Franchise consultants help prospective franchisees find opportunities that match their goals and budget. They provide guidance on the selection process and may assist with financing and legal reviews.

22. What is a franchise fee?

The franchise fee is an upfront payment to the franchisor for the right to operate under their brand. It typically covers training, initial support, and access to proprietary systems.

23. What is a franchise territory?

A franchise territory is the geographic area where the franchisee has exclusive or semi-exclusive rights to operate. This ensures that other franchisees won’t compete within the same area.

24. What happens if I fail to meet franchise requirements?

Failure to meet requirements can result in penalties, loss of territory rights, or termination of the agreement. It’s crucial to understand and adhere to the franchisor’s standards.

25. How do I evaluate a franchise opportunity?

Research the franchisor’s track record, financial stability, and support systems. Speak with current and former franchisees to gain insights into their experiences. Review the FDD and consult with legal and financial advisors before making a decision.

1. What is an SBA franchise loan?

An SBA franchise loan is a government-backed loan designed to help entrepreneurs finance franchise businesses. These loans offer favorable terms, such as low down payments, competitive interest rates, and long repayment periods, making them an attractive option for franchisees.

2. What types of SBA loans are available for franchises?

The most common options are SBA 7a loans for working capital, equipment, and business acquisitions, and SBA 504 loans for real estate and large fixed-asset investments. SBA Express loans are also available for faster processing, though they have lower loan limits.

3. Can I use an SBA loan to buy a franchise?

Yes, SBA loans can finance franchise fees, equipment, working capital, and other startup costs. However, the franchise must be listed on the SBA Franchise Directory to qualify for financing.

4. What is the SBA Franchise Directory?

The SBA Franchise Directory is a list of franchises that meet the SBA’s eligibility requirements for financing. Franchises on this list have been vetted for transparency and compliance, ensuring they meet the standards for SBA-backed loans.

5. What are the benefits of SBA loans for franchises?

SBA loans offer lower interest rates, longer repayment terms, and lower down payment requirements compared to traditional loans. They also provide access to capital for new and expanding franchisees, making it easier to start or grow a franchise business.

6. What are the eligibility requirements for SBA franchise loans?

Applicants must meet SBA size standards, have good credit (typically 680+), and demonstrate the ability to repay the loan. The franchise must also be SBA-approved, and the borrower must provide a strong business plan and financial projections.

7. How much can I borrow with an SBA franchise loan?

SBA 7a loans offer up to $5 million, while SBA 504 loan projects can go up to $15 million or more for qualified projects. The loan amount depends on your financial strength, project needs, and the lender’s evaluation.

8. What is the interest rate for SBA franchise loans?

Interest rates are tied to the prime rate plus a margin, which varies by loan type and amount. For example, SBA 7a loans typically have rates ranging from Prime + 2.25% to Prime + 4.75%, depending on the loan size and term.

9. What documents are required for an SBA franchise loan?

Common documents include a business plan, financial statements, tax returns, franchise agreement, personal financial statement, and proof of licensing. Additional documents may be required based on the lender’s criteria.

10. Do I need collateral for an SBA franchise loan?

Collateral strengthens your application but isn’t always required. The SBA doesn’t decline loans solely due to insufficient collateral, but personal guarantees from owners with 20% or more ownership are typically mandatory.

11. Can I refinance a franchise loan with an SBA loan?

Yes, SBA loans can refinance existing debt if it improves terms or frees up working capital. The refinancing must meet SBA guidelines, such as providing a tangible benefit to the borrower. All debt being considered for refinance must be related to the franchise business, personal debt or debt belonging to another business is not allowed.

12. How long does it take to get an SBA franchise loan?

Approval timelines vary based on the loan type and application completeness. SBA 7a loans typically take 30-60 days, while SBA 504 loans may require 60-90 days due to their more complex structure. SBA Express loans can be approved in as little as 7-10 days.

13. Can I use an SBA loan for franchise marketing expenses?

Yes, some SBA loans can cover marketing costs, including website development, advertising campaigns, and promotional materials. These expenses are considered part of working capital or startup costs.

14. What is the down payment for an SBA franchise loan?

SBA loans typically require a down payment of 10-20% of the total project cost. The exact amount depends on the lender,  loan type, project scope, and borrower’s financial profile.

15. Can I use an SBA loan to buy an existing franchise?

Yes, SBA loans can finance the purchase of existing franchises. The lender will evaluate the franchise’s financial performance, market potential, and the borrower’s ability to manage the business. The franchise must also be an approved concept and listed on the SBA franchise directory.

16. Are there prepayment penalties for SBA franchise loans?

Some SBA franchise loans will have a prepayment penalty depending on the loan size, loan type and lender. It’s best to inquire with your lender on what the prepayment penalty may look like for your loan request.

17. What credit score is needed for an SBA franchise loan?

A credit score of 680 or higher is preferred, but lower scores may be offset by strong business plans, collateral, or co-signers. Lenders also consider your overall financial health and repayment ability.

18. Can I get an SBA loan for a home-based franchise?

Yes, home-based franchises can qualify for SBA loans if they meet size and revenue requirements. Licensing, compliance, and financial projections are also evaluated during the application process.

19. What happens if my SBA loan application is denied?

If denied, review the reasons provided by the lender and address any deficiencies before reapplying. You can also explore alternative financing options or work with a different SBA-approved lender.

20. Can SBA loans cover franchise training costs?

Yes, SBA loans can finance initial training fees and other startup expenses required by the franchisor. These costs are typically included in the franchise fee or as part of the working capital.

21. What role does the franchisor play in SBA loans?

Franchisors often assist with the loan process by providing financial data, operational details, and support. Some franchisors have preferred lender partnerships to streamline financing for their franchisees.

22. Can I use an SBA loan for franchise equipment?

Yes, some SBA loans can finance equipment purchases, including kitchen appliances, furniture, and technology. These expenses are considered eligible uses of loan proceeds under SBA guidelines.

23. Are SBA loans available for multi-unit franchises?

Yes, SBA loans can fund multi-unit franchise investments. Lenders evaluate the financial viability of each unit and the borrower’s ability to manage multiple locations.

24. What is the repayment term for SBA franchise loans?

Repayment terms vary: working capital loans are typically 7-10 years, while real estate loans can extend up to 25 years. Equipment loans generally have terms of 10-15 years, depending on the asset’s useful life.

25. How do I apply for an SBA franchise loan?

Start by selecting an SBA-approved lender and gathering required documents, such as your business plan, financial statements, and franchise agreement. Work closely with the lender to complete the application and submit it to the SBA for approval. The lender will guide you through the underwriting and closing process.

1. What is a Franchise Disclosure Document (FDD)?

The FDD is a legal document that provides detailed information about a franchise opportunity. It is required by the Federal Trade Commission (FTC) in the U.S. and must be provided to prospective franchisees at least 14 days before signing a franchise agreement. The FDD includes 23 specific items, such as fees, obligations, and financial performance, to help franchisees make informed decisions.

2. Why is the FDD important?

The FDD ensures transparency between the franchisor and prospective franchisees. It outlines the rights and responsibilities of both parties, helping franchisees understand the costs, risks, and benefits of the franchise. Reviewing the FDD thoroughly can prevent misunderstandings and protect franchisees from entering unfavorable agreements.

3. What are the 23 items in the FDD?

The FDD includes 23 sections covering key aspects of the franchise, such as the franchisor’s background, fees, initial investment, territory rights, financial performance, and legal obligations. It also includes information on training, support, and the franchise agreement. Each section is designed to give franchisees a comprehensive understanding of the business.

4. When should I receive the FDD?

The franchisor must provide the FDD at least 14 days before you sign the franchise agreement or pay any fees. This waiting period allows you to review the document, consult with advisors, and make an informed decision. If the franchisor fails to provide the FDD on time, it may violate FTC regulations.

5. What fees are disclosed in the FDD?

The FDD outlines all fees associated with the franchise, including the initial franchise fee, royalties, advertising contributions, and other ongoing costs. It also details any additional fees, such as training, technology, or renewal fees. Understanding these costs is crucial for evaluating the financial viability of the franchise.

6. Does the FDD include financial performance information?

Item 19 of the FDD may include financial performance representations, but it is not mandatory. If provided, this section offers data on the revenue, expenses, or profits of existing franchise units. If the franchisor does not include this information, you should ask for clarification or speak with current franchisees.

7. What is the purpose of the franchisor’s background section?

The FDD includes a section on the franchisor’s history, including its founders, executives, and any legal or financial issues. This helps you assess the franchisor’s credibility, stability, and experience. Pay attention to any past bankruptcies, lawsuits, or regulatory violations.

8. What does the FDD say about territory rights?

The FDD outlines whether you will have an exclusive or non-exclusive territory and the conditions under which the franchisor can open additional units nearby. This section is critical for understanding your market potential and competition. Ensure the territory terms align with your business goals.

9. Does the FDD explain training and support?

Yes, the FDD includes details about the training programs, ongoing support, and resources provided by the franchisor. This may cover initial training, marketing assistance, operational guidance, and access to proprietary systems. Evaluate whether the support offered meets your needs as a franchisee.

10. What legal obligations are outlined in the FDD?

The FDD specifies your legal obligations as a franchisee, including compliance with operational standards, royalties, reporting requirements, and renewal terms. It also details the franchisor’s obligations, such as providing support and maintaining the brand. Understanding these obligations is essential for avoiding disputes.

11. What is the significance of the litigation history in the FDD?

The FDD includes a section on the franchisor’s litigation history, detailing any lawsuits involving the franchisor, its executives, or franchisees. This information helps you assess potential risks and the franchisor’s reputation. A history of frequent litigation may indicate underlying issues with the franchise system.

12. Does the FDD include information about franchise closures?

Yes, the FDD provides data on franchise openings, closures, transfers, and terminations over the past three years. This information helps you evaluate the success rate and stability of the franchise system. High closure rates may be a red flag, indicating challenges within the system.

13. What is the franchise agreement, and how does it relate to the FDD?

The franchise agreement is the binding contract between you and the franchisor, while the FDD is a disclosure document that provides context for the agreement. The FDD helps you understand the terms of the franchise agreement before signing. Always compare the two documents to ensure consistency.

14. Can I negotiate terms in the FDD?

While the FDD itself is not negotiable, some franchisors may allow limited negotiations on the franchise agreement, such as fees or territory rights. However, this depends on the franchisor’s policies and your bargaining power. Consult with a franchise attorney to explore your options.

15. What should I do if I don’t understand parts of the FDD?

If you find sections of the FDD confusing or unclear, consult with a franchise attorney or financial advisor. They can help you interpret the document, identify potential risks, and ensure you fully understand your obligations. Never sign a franchise agreement without fully understanding the FDD.

16. What is the role of Item 7 in the FDD?

Item 7 outlines the estimated initial investment required to start the franchise. It includes costs like equipment, real estate, and working capital. Reviewing this section helps you understand the financial commitment and plan your budget accordingly.

17. Does the FDD include information about advertising requirements?

Yes, the FDD details the franchisor’s advertising requirements, including contributions to a national or regional advertising fund. It may also outline your responsibilities for local marketing efforts and the use of approved advertising materials.

18. What is the significance of Item 20 in the FDD?

Item 20 provides data on the number of franchise units opened, closed, transferred, or terminated over the past three years. This section helps you assess the growth and stability of the franchise system.

19. How does the FDD address renewal terms?

The FDD outlines the terms and conditions for renewing your franchise agreement. This may include renewal fees, updated operational requirements, and the duration of the renewal term. Understanding these terms is crucial for long-term planning.

20. What is the role of Item 11 in the FDD?

Item 11 describes the franchisor’s obligations to provide training, support, and operational assistance. It outlines what you can expect in terms of initial and ongoing support, helping you evaluate the franchisor’s commitment to your success.

21. Does the FDD include restrictions on suppliers?

Yes, the FDD may include restrictions on where you can purchase products, equipment, or services. These restrictions ensure consistency across the franchise system but may limit your ability to negotiate prices with suppliers.

22. What is the significance of Item 12 in the FDD?

Item 12 outlines the franchisee’s territory rights, including whether the territory is exclusive or non-exclusive. It also explains the conditions under which the franchisor can open additional units within your territory.

23. How does the FDD address dispute resolution?

The FDD includes a section on dispute resolution, outlining the process for resolving conflicts between the franchisor and franchisee. This may include mediation, arbitration, or litigation procedures.

24. What is the role of Item 21 in the FDD?

Item 21 provides the franchisor’s financial statements, offering insights into their financial health and stability. Reviewing this section helps you assess the franchisor’s ability to support the franchise system.

25. Can the FDD be updated after I receive it?

Yes, the FDD can be updated annually or as required by law. If significant changes occur after you receive the FDD, the franchisor must provide you with the updated version before you sign the franchise agreement.

 

1. What are my responsibilities as a franchisee?

As a franchisee, you are responsible for managing the day-to-day operations of your business while adhering to the franchisor’s guidelines. This includes hiring and training staff, maintaining quality and brand standards, while ensuring customer satisfaction. You’ll also need to handle financial management, such as tracking expenses and paying royalties. Staying compliant with the franchise agreement is critical to maintaining your rights as a franchisee.

2. How much control do I have over my franchise?

While you own and operate the business, your control is limited by the franchisor’s rules and systems. You must follow brand standards, pricing policies, and operational procedures outlined in the franchise agreement. However, you have control over local decisions like staffing and community engagement. This balance ensures consistency across the brand while allowing some flexibility for local market needs.

3. What kind of support will I receive from the franchisor?

Franchisors typically provide initial training, marketing support, and ongoing operational guidance. This may include access to proprietary systems, advertising campaigns, and a dedicated support team. Some franchisors also offer field visits and performance reviews to help you succeed. The level of support varies by franchise, so it’s important to evaluate this before signing an agreement.

4. How do I handle marketing for my franchise?

Most franchisors manage national or regional marketing campaigns funded by advertising fees paid by franchisees. You may also be responsible for local marketing efforts, such as community events or social media promotions. The franchisor often provides marketing materials and guidelines to ensure brand consistency. Collaborating with the franchisor on marketing strategies can maximize your reach and impact.

5. What are the financial obligations of running a franchise?

Financial obligations include paying royalties, advertising fees, and other ongoing costs outlined in the franchise agreement. You’ll also need to manage operational expenses like payroll, rent, and inventory. It’s crucial to maintain accurate financial records and monitor cash flow to ensure profitability. Some franchisors may require regular financial reporting to assess your performance.

6. How do I hire and train staff for my franchise?

Hiring and training staff is your responsibility, but many franchisors provide guidelines or training programs to ensure consistency. Look for employees who align with the brand’s values and customer service standards. Comprehensive training is essential to maintain quality and efficiency. Regular performance evaluations and ongoing training can help retain top talent and improve operations.

7. What happens if my franchise underperforms?

If your franchise underperforms, the franchisor may offer additional support, such as operational reviews or marketing assistance. It’s important to identify the root causes, whether they’re related to market conditions, competition, or internal management. Proactively addressing issues and seeking guidance from the franchisor can help turn things around. In extreme cases, the franchisor may have the right to terminate the agreement if performance doesn’t improve.

8. Can I make changes to the products or services offered?

Franchisees are generally required to stick to the franchisor’s approved products and services to maintain brand consistency. Any changes must be approved by the franchisor, and unauthorized modifications could violate the franchise agreement. However, some franchisors may allow limited customization to cater to local market preferences. Always consult with the franchisor before making any changes.

9. How do I manage competition from other franchisees?

Many franchisors grant exclusive territories to franchisees to minimize internal competition. If your agreement doesn’t include territorial rights, you may face competition from nearby franchise locations. Focus on providing excellent customer service and building strong community relationships to differentiate your business. Discuss concerns with the franchisor if competition becomes an issue.

10. What are the challenges of running a franchise?

Challenges include adhering to strict franchisor guidelines, managing financial obligations, and dealing with market competition. Limited operational flexibility can be frustrating for some franchisees. Additionally, external factors like economic downturns or changes in consumer behavior can impact performance. Staying proactive and leveraging franchisor support can help you navigate these challenges.

11. How do I ensure compliance with the franchise agreement?

Regularly review the franchise agreement and stay updated on any changes to franchisor policies. Follow operational guidelines, meet financial obligations, and maintain brand standards. Many franchisors conduct audits or inspections to ensure compliance. Open communication with the franchisor can help address any issues before they escalate.

12. What role does technology play in running a franchise?

Technology is essential for streamlining operations, managing inventory, and enhancing customer experiences. Many franchisors provide proprietary software for point-of-sale systems, reporting, and marketing. Staying updated on technological advancements can improve efficiency and competitiveness. Ensure your staff is trained to use the technology effectively.

13. How do I handle customer complaints in a franchise?

Address customer complaints promptly and professionally to maintain brand reputation. Follow the franchisor’s guidelines for handling issues and escalate serious concerns to the franchisor if necessary. Use feedback to identify areas for improvement and prevent recurring problems. Excellent customer service can turn negative experiences into positive outcomes.

14. Can I expand my franchise business?

Many franchisors offer opportunities for multi-unit ownership or area development. Expanding requires approval from the franchisor and a strong track record of success with your current location. It also requires additional financial resources and management capabilities. Discuss your expansion goals with the franchisor to explore available options.

15. What happens when my franchise agreement expires?

When your franchise agreement expires, you may have the option to renew, sell the business, or exit the franchise system. Renewal terms are outlined in the agreement and may require additional fees or updates to your location. If you choose to exit, the franchisor may have specific requirements for transferring ownership. Plan ahead to ensure a smooth transition.

16. How do I measure the success of my franchise?

Success can be measured through financial performance, customer satisfaction, and adherence to brand standards. Regularly review key performance indicators (KPIs) like revenue, profit margins, and customer retention rates. Franchisors often provide benchmarks to help you evaluate your performance against other franchisees.

17. Can I sell my franchise?

Yes, most franchise agreements allow for resale, but the franchisor may need to approve the buyer. The agreement may also include specific terms for transferring ownership. Selling a franchise can be a profitable exit strategy if the business is successful.

18. What is the role of the franchise advisory council?

Many franchises have advisory councils made up of franchisees who provide feedback to the franchisor. These councils help address franchisee concerns, suggest improvements, and foster collaboration. Participating in the council can give you a voice in shaping the franchise system.

19. How do I manage seasonal fluctuations in my franchise?

Some franchises experience seasonal demand, such as those in retail or tourism. Plan ahead by managing inventory, staffing, and marketing efforts to align with peak seasons. Use slower periods to focus on training, maintenance, and community engagement.

20. What insurance do I need for my franchise?

Most franchisors require franchisees to carry specific types of insurance, such as general liability, property, and workers’ compensation. Some may also require business interruption or key person insurance. Review the franchise agreement and consult with an insurance provider to ensure you meet all requirements.

21. How do I handle employee turnover in my franchise?

High employee turnover can disrupt operations and increase costs. Focus on creating a positive work environment, offering competitive wages, and providing growth opportunities. Regularly recognize and reward employee contributions to boost morale and retention.

22. What is the importance of community involvement for my franchise?

Engaging with your local community can build brand loyalty and attract customers. Participate in local events, sponsor community programs, or collaborate with other businesses. Community involvement helps establish your franchise as a trusted and valued part of the neighborhood.

23. How do I manage inventory for my franchise?

Effective inventory management ensures you have the right products in stock without overordering. Use inventory tracking systems provided by the franchisor and monitor sales trends to adjust orders. Regularly conduct inventory audits to minimize waste and theft.

24. What is the role of training in franchise success?

Training ensures that you and your staff understand the franchisor’s systems, standards, and expectations. Ongoing training helps you stay updated on new products, technologies, and best practices. Well-trained staff deliver better customer experiences and improve operational efficiency.

25. How do I handle disputes with the franchisor?

Disputes can arise over fees, compliance, or operational issues. Review the dispute resolution process outlined in the franchise agreement, which may include mediation or arbitration. Open communication and a willingness to collaborate can often resolve issues before they escalate.