Prior to working at No Limit Agency and 1851 Franchise, I knew the basics about the franchising world (like, that franchises existed). I knew the opportunity to work here was also an opportunity to work on big, exciting brands and to learn about a variety of industries, from restaurants and spas to cleaning services and child education. What I didn’t know was that the world of franchising was so much bigger than I ever would have thought. Before joining No Limit, I couldn’t have told you the first step to joining a franchise; now, I can tell you what item 19 is in a Franchise Disclosure Document, and I throw around words like “franchise fee,” “EBITDA” and “IFA” like it’s my job (oh wait, it is).

Many new franchisees that I’ve spoken with over the last year seem to have once been in the same boat – when I ask the question, “What did you think of franchising before deciding to join this brand” I often hear that they didn’t have much of a perspective on it at all. They simply knew they wanted to start their own business, and in their research, decided to join a franchise because of the established support system and knowledge that they’re joining an already successful brand. And now, as franchisees, they know much more about the world of franchising than ever before, and it’s changed their lives forever.

1851 Chief Development Strategist Sean Fitzgerald and Vice President Scott Oaks are on another end of the spectrum. They’ve been in the franchising industry for years, and they seem to know everything there is to know about all things franchising. Our 1851 and No Limit Agency teams have developed new favorite pastimes whenever Sean and Scott are in the office – franchising trivia (nerdy, I know, but we love it) and “Stump Sean and Scott” where we ask them what we think are tough questions, and they blow our minds and answer each one.  

A few weeks ago, we decided to offer up our franchising experts to the rest of the world for questioning. We asked our Facebook fans what questions they had about franchising, and Sean and Scott answered from 1851’s page. What’s great about the internet is that it has put a world of knowledge at our fingertips. Anything you want to know, you can find an answer to quickly, and we want to be that fast, easy resource for our clients, friends and even people who are just starting to explore the franchise world. So, if you have burning questions on franchising, head to our Facebook page, and our experts will give you the answers you’re looking for!

Here are some of the questions and answers we’ve covered on Facebook so far:

I'm interested in joining a restaurant brand, but I'm not sure which one would be the best investment. Where do I even start in my research?
You first need to understand your level of investment. There are so many great options across multiple financial levels. Then determine whether you want an owner-operator model or absentee/investor model. And finally, look for brands that you have some connection or can get excited about. Going with a rising "fad" right now may be exciting, but after 18 months of operating, ask yourself if this will still be a brand/operation you can be enthusiastic about and can continue to be an answer to a demand in the marketplace.

What is a common mistake you see brands making across the board in terms of franchise development marketing?
We think the most common mistake is not investing in the website to create a great experience for visitors or implementing a strong digital footprint to drive the right type of traffic.

What will the overtime salary rule mean for franchise brands (franchisor and franchisee)?
Increased regulations on businesses will impact small businesses far more than large corporations. Given that franchisees are mostly small business owners, it will have a significant impact on them. The overtime/salary rule will probably force small business owners to pay hourly instead of salary, ultimately eliminating any benefits a salaried employee would receive.

What is the best growth strategy for companies just starting to franchise?
Emerging franchisors need to make sure that they have a detailed process for recruiting candidates and to be very selective on who they sign on as a franchisee. The first franchisees will be your validators so their success is critical for future growth.

I am interested in joining a service-based brand. What have been some of the emerging service sectors of 2016 that are gaining momentum that are worth looking into?
There are many categories that remain hot for service brands like senior care, child education, commercial and residential cleaning and home services. Some newer concepts that are non-traditional are really starting to take off as well, like Mosquito Joe, Caring Transitions and pet care concepts like K-9 Resorts.

How do franchises figure out funding? What is the most common form of financing?
This is a great question since funding is the biggest challenge for many franchise candidates. Franchisors will require candidates to submit a financial application in order to determine the financial capability of the candidate and/or the likelihood they could secure funding. The most common methods for funding remain SBA and traditional bank business loans. 401k funded loans have been popular the past few years but the business has to be structured a certain way that can create challenges for business owners in the long-term.

As a prospective franchisee, what’s the most important question to ask brands in order to get an idea of what it’s really like to be one of their local owners?
Ask to speak to their franchisees. It is the best way to get "real world" info.

If I'm trying to decide about investing my money in a brand, how do I know if I should choose a restaurant brand or a service brand? How do I figure out the best ROI?
 irst, select an industry that you feel you would be successful in, not necessarily what you like. 2nd, do your due diligence. Understand the FDD, investment range and speak to franchisees to get their experience on costs, EBITDA and ROI.

How does a business owner know when they should start franchising?
The best sign is that you have a business that can be easily replicated with very detailed operating procedures. Where most franchisors fail is their inability to properly train and support franchisees on the system and allowing franchisees to deviate from the system.

That's it from the franchising experts! Stay tuned for future franchising Q&As from Sean and Scott.