Want to Franchise but have many questions

**keenan** · 02-12-2009 11:14 AM

Hello all,

I do apologize for posting this in another forum. I did not see this one when I first posted. If someone can inform me on this subject I would greatly appreciate it.

My name is John. I own a web design company on the Internet where I sell currently about 100 "as is" to as many clients as we can with their clear understanding they are buying a site that others have also bought. We also create custom sites everyday for many clients. I want to offer the opportunity to someone to buy into the business to be a franchisee for a set price. I also want my team to be the exclusive designers that can put the sites together and make changes to them that the franchisee is able to sell. The franchisee can mark up the prices as much as he or she wants to. There is tremendous room for marking up for our "as is" sites are only sold for $295.00 and we have competitors that charge anywhere from $500 - $1500 and they make good money at it. Basically what I want to have the franchisee do is to be able to buy in to have the rights to sell the sites. There is a ton of money to be made for anyone in the states and internationally that can sell. I don't think we want to charge a percentage of the revenue the franchisee takes in but we might charge 3% or so if we even attempted to do that. I am looking for as much advice as possible. I am finding a considerable amount of people wanting to sell me a franchise but haven't found a good place to get advice from people that have franchised a business.

I am all ears if someone can share some knowledge. Would appreciate it tremendously.

Best Regards,

John

**Carl Taylor** · 02-17-2009 01:47 AM

Hi John,

franchising is an exciting form of business and I wish you great success.

Firstly you may want to get clear on what model you will use when franchising.

The one you have mentioned is more of a license model, where they are essentially resellers who buy the rights to resell your product.

My recommendation would be to first get clear on the structure.

Design a organisational chart of how the structure and depth of the franchise setup will go.

[HEAD OFFICE]
|
AREA LICENSEE
|
LICENSEE
|
CUSTOMER
You see in my example its broken into 3 levels the head office sells a license to someone for an area in which they then sell a license to someone who actually sells the product.

This is a very successful model to use and I highly recommend it however you need to think hard about the roles that everyone will play and what rights everyone has as well
and do some googling about Franchise/ Licensing models

Good luck

**InvestorDirector** · 03-16-2009 02:54 PM

we need an established person or company to partner with for our web presence. Residual income will blow your mind. we have been in business for 14 years. 727.709.5652