If you are interested in owning a franchise, make sure you have a good understanding of how the system works before jumping in. Franchising is an effective business model as long as it’s a good fit for you. The franchising sector itself is experiencing tremendous growth, as more and more entrepreneurs want to control their financial security and future.

Based on the 2022 International Franchise Association’s, Franchising Economic Outlook, the industry has expanded by 2.2%, reaching nearly 800,000 franchise establishments, which is 17,000 more than 2021.

Yet, there are many misunderstandings in the marketplace when it comes to franchises. We seek to address your questions and concerns here.

What are Franchises?

So, what exactly are franchises? Some call franchises a ready-made business. Plain and simple, it’s a business model in which a franchisee (independent business owner) pays an initial franchise fee and ongoing royalties to a franchisor or brand. In return for their investment, the franchisee has the right to use the franchise brand, trademark, logos, and business system, to sell their products or services and gain training and ongoing support.

To understand just how a franchise works, you will have to find a franchise brand whose values align with yours and that deals with services or products that you are interested in. It’s in your best interest to understand the franchise fees and requirements as they often differ based on the industry and the brand.

Do Your Research

It’s also advantageous to speak with current franchisees about their experience with the franchisor. You will likely go through a discovery day where you will get more acquainted with the franchise. It’s important for both you and the franchisor to feel comfortable with this arrangement.

You must do your homework. Look at the growth rate of the franchise and study the Franchise Disclosure Document (FDD). The FDD outlines comprehensive information about the roles of both parties involved in the franchise and allows the potential franchisee to make an informed decision about their investment.


Experts says franchise start-up costs can have a very wide range. You may find a franchise with fees as low as $5,000 or as high as $5 million. Most franchises will cost in the range of $100,000-$300,000.  Keep in mind you will also have to pay on-going royalties and possibly marketing fees.

So, is it worth it? According to a survey by Franchise Business Review, on average, franchisees make about $80,000 annually. Some franchises require the owners to work by managing the operation while other franchises can be used as an investment in the owners’ financial portfolio. That’s why it’s important to research to find a franchise that will help you meet your goals. Most franchise agreements or contracts between franchisor and franchisee are at least 10 years, so do your due diligence before you sign on the dotted line.

Launching Your Franchise

If everything works out, you will be trained by your franchisor, and they will assist with getting your business up[BC1]  and running. This often includes securing a location, negotiating a lease, assisting with construction costs and permits, and everything in between to get to your grand opening.

There are many details here that can help get your business off the ground and operational that a sole proprietor creating a start-up business from scratch won’t have.

Benefits of Franchise Opportunities

The extra assistance from a franchise creates a type of safety net – you still have the advantage of being a business owner, but your risk is somewhat mitigated. This is thanks to the significance of the proven business model and training. You can avoid many pitfalls of business ownership because the model has been tested and tweaked and provides a strong guide for you.

Additionally, being in a collective group allows you to enjoy some perks like buying supplies and materials in bulk at a cheaper cost. You will also pay a marketing and advertising fee which  can be very valuable as you establish yourself in the marketplace against your competition.

You will be partnering with a recognizable, established brand that will open many doors for you – doors that may bring in an instant customer base. This is because these customers already know the brand and its standards. In franchising, there is no guarantee of success, but it can often give you a head-start.

Franchising with RSVP Advertising

At RSVP, our Franchise Members appreciate the benefits of being a part of the Alliance Franchise Brands network. With continued sales training and marketing support from the Home Office staff, RSVP Franchise Members are able to focus on growing their business at a local level. Franchise Members work with local businesses to come up with a strategy to broaden their customer base through lead generation to affluent households with direct mail marketing.

As an entrepreneur, you can enjoy a quick ramp-up. You’ll get started in your own business in no time with an initial franchise fee of just $15,000.

If you’re ready to launch your next business opportunity with a trusted franchise brand, then contact RSVP Direct Mail Advertising today.