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The Complete Guide to Franchises

AllBusiness.com

In return, the franchisee pays an initial franchise fee and ongoing royalties. Note: The Federal Trade Commission (FTC), the nation's consumer protection agency, regulates franchising through the FTC Franchise Rule , which is designed to help you make an informed decision about investing in a franchise opportunity.

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Understanding the Financial Side of Franchising: What You Need to Know

The Franchise Consulting Company

Components of the Initial Franchise Investment: Franchise Fee: The franchise fee is typically the first major cost you’ll incur when purchasing a franchise. This fee grants you the right to use the franchisor’s brand, trademarks, and proprietary systems.

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The Top Mistakes First-Time Franchisees Make and How to Avoid Them

The Franchise Consulting Company

Research the industry the franchise operates in to assess its potential for growth, current market conditions, and any external factors that could impact your business. Review the Franchise Disclosure Document (FDD): The FDD is a legal document that provides detailed information about the franchise opportunity.