I need a minimum of $ 1 million for Franchise My Business

Let me be blunt-Heck no. Sometimes the strangest things I hear from people. I was talking with someone a few days ago, who said she was told by several sources, in order to franchise his business must have a minimum of one million dollars. I'd like to know who is fueling this woman with false delusions. I am here to say that this is misleading - let me explain.

It 'true that, in order to franchise your business requires that the operational concept (at least for a year, this is no child's play) and yes we need sufficient funds to support future franchisees and demonstrate the financial viability but the total is no where near a million dollars. If you yearn to duplicate the model, people have shown interest in your company and get to know other people can achieve success with the concept in other areas then you will be surprised at the cost. The cost for your franchise business is minimal and is simply:

* Creation of a National Agency for the Parent

* The funding of the Parent, simply create a bank account and transfer funds to show a balance (suggested minimum is $ 50K more the better-shows financial strength).

* The registration of the trademark with USPTO-logo and the word mark

* Determine the structure of the franchise system - briefing papers prepared. * The financial statements prepared by a CPA-shows with required disclosure documents.

* Rates for the UFOC (reports) has created.

* The rates for a franchise attorney to review, edit and store these documents in your country of origin information.

* Tax to file disclosure documents in other states (I suggest you stay in your home country at first slowly, then go to other states).

* Material Resources and Operations Manual Pre-Opening necessary to present your procedures, systems and confidential information.

* Marketing and advertising budget to offer the sale of the franchise once approved (optional at first depending on how aggressive you want to be).

* Website development Web portals for the various functions that will be available for Affiliates

* Develop a program of Discovery Day and Training / orientation program for affiliates.

That's all. You need a large staff for its parent company, no. Obviously you want to start slow and grow your franchise business requires. I always advisable to begin offering franchising in your state of their own for the first year-to keep things from a distance of arms length. So what is the minimum cost for the items mentioned above from $ 90K. This includes a minimum of $ 50K to fund your parent. Are you surprised?

It 's funny that most employers (including you) do not realize that the pieces needed for successful franchises already exist. I'll be mad, but our philosophy is that a franchise consultant responsible must be aware of this and, rather than spending your money for Franchise, your money is better spent on items that will further strengthen the system and added value for future franchisees .

So forget to find Angel Investors or VC funding to raise $ 1mm. Even the most aggressive entrepreneurs who are starting to franchise and pay top dollar to do so (companies out there that charge a ridiculous amount just to Franchise Your Business) and record in all the states have not even spend half that amount .......