Franchising FAQ's
You've got questions. We've got answers!
General Franchising Questions
What is a franchise?
A franchise is a business model that allows individuals (franchise owners) to own and operate their own businesses using the franchisor's brand, products, and support systems.
How does franchising work?
The franchisor grants the franchise owner the right to use its brand and business model in exchange for fees and ongoing royalties. franchise owners benefit from established brand recognition and support.
What are the advantages of owning a franchise?
Franchise owners benefit from an established brand, proven business model, training and support from the franchisor, collective marketing efforts, and a higher likelihood of success than starting a business from scratch.
How much does it cost to buy a franchise?
The cost of a franchise varies widely depending on the industry, brand, and other factors. Franchise fees can range from a few thousand to several hundred thousand dollars.
What is a franchise fee?
The franchise fee is an initial, one-time payment made by the franchise owner to the franchisor. It grants the franchise owner the right to use the franchisor's brand and operating system.
What are royalties?
Royalties are ongoing fees paid by the franchise owner to the franchisor, usually calculated as a percentage of the franchise owner's gross sales. This fee supports ongoing support and services provided by the franchisor.
What is the term of a franchise agreement?
The term of a franchise agreement is the duration for which the franchise owners are granted the right to operate under the franchisor's brand. It typically ranges from 5 to 20 years.
Can franchise owners sell their franchise?
Many franchise agreements allow franchise owners to sell their businesses, subject to certain conditions and approval from the franchisor.
What kind of support can a franchise owner expect from the franchisor?
Franchisors typically provide training, marketing support, ongoing operational support, and assistance with site selection. The level of support can vary among different franchises.
What is the difference between a franchise and a business opportunity?
While franchises and business opportunities both involve the sale of a business model, franchises typically offer a more comprehensive and structured system, including ongoing support and a recognized brand.
What is the role of the franchisor in marketing?
Franchisors often handle national or regional marketing campaigns, while franchise owners may contribute to local marketing efforts. The franchisor's marketing support can include advertising materials, branding, and strategic guidance.
Summit Building Services Franchising Questions
Can I be a passive owner?
Summit Building Services' franchise system doesn't allow for passive ownership.
What support is offered?
We offer an extensive support system and, most importantly, our dynamic tech stack. For years, we've refined our systems and processes, and we're excited to help franchise owners use them to grow their businesses.
Do I need experience?
Nope! While it's a plus, we don't require experience in the industry- just a willingness to learn.
What is Summit Building Services?
Summit Building Services is a full-service commercial cleaning company. Our corporate office currently services the entirety of North East Ohio. We started local and are excited to help franchise owners start their own locally-run cleaning companies.