What is a franchise? A franchise is a business where the owner or “franchisor,” sells the rights to their business name, logo, and model, to third party independent operators, called “franchisees.” Franchise businesses are all around us and you probably had lunch in one today – examples are McDonalds, Burger King, Subway, UPS, or H&R Block. There are many franchise opportunities in MN, which don’t just include fast food, there are automotive, cleaning/maintenance, health/fitness, pet shops, cosmetics, and lots of other franchise opportunities.
Minnesota Franchise Requirements
Minnesota franchises which are offered or sold, must be registered or exempt from registration, in accordance to the Minnesota Franchise Act. All franchise applications must comply with the Act and should be prepared in accordance with the 2008 NASAA (North American Securities Administrators Association) Franchise Registration and Disclosure Guidelines. You should familiarize yourself with these regulations if you are interested in a franchise.
Benefits of Franchising
Franchise opportunities in MN, allow people to become their own bosses, and to own and operate their own business. Franchising is not a start-up company, with many details to deal with. Instead, it is an established business which is already in place, where its products, services, and operational style has already been designed. When deciding to buy into a franchise environment in Minnesota, consult with Minnesota brokers, who can offer local services to both buyers and sellers.
Selling and/or Buying a Franchise
If you are selling your franchise investment, franchise brokers can help with the following:
* Educating you about the selling process
* Assisting in the valuation of your business
* Marketing your business confidentially
* Helping buyers find financing
* Negotiating
* Saving you time and frustration
* Due diligence coordination
* Closing the deal
With many Midwest franchises for sale, potential buyers, want to know what the annual income has been, annual overhead costs, business permit costs and detailed information about the location of the franchise. Sellers need to provide as much information as possible about the franchise to entice potential buyers to invest their money and purchase your franchise. When you are thinking about buying a business, a capable franchise broker can educate you on the entire process, show you how to find the right business, show you how businesses are valued, how to evaluate if a company’s cash flow is healthy, and how to successfully get deals financed.
Franchise Costs
To buy into franchise opportunities in MN, the cost will be dependent upon the business you are entering into. Every Minnesota franchise has its own set of financial requirements. The basic costs include a franchise fee, build-out costs, professional fees, contractor fees, signage and inventory. Most franchise fees can be as low as $20,000 to $50,000. The franchise fees involve the cost of training, support, and the location of the business. In some cases, a franchise fee only covers an upfront licensing fee for the rights to use the franchise name, logo, etc. Before entering a franchise arrangement, do your research or ask your franchise broker to help you, because there may be other franchise charges which could become quite costly. These include equipment rental, insurance, building rental, or other miscellaneous fees, like an opening fee or a special promotions fee.
Top Midwest Franchise Brokers
To find the best in franchise brokers within the Midwest cities of Chicago, Milwaukee, and throughout Minnesota, contact Sunbelt Midwest Business Brokers. Through Sunbelt international, they can navigate the complexities of buying and selling a business. They are committed to confidentiality, integrity, and professionalism, which save you time and money, with an authority in business sales which you can trust.
