Can your Dollarstore Franchise Company Answer These Questions?
One method that many who seek dollar store expert help to start their dollar store is using a franchise company. In essence you buy a dollar store franchise opportunity to gain that expert assistance. Most franchising companies provide you with the rights to use their company’s name, trademarks, and operating systems in your dollarstore. They exchange these for a franchise royalty fee and a percentage of your gross monthly sales. In situations where you need a great deal of training franchising might be the right solution for you. It is definitely one way to find a proven system. Be careful about the costs and fees, as they can really affect your final dollar store profits and losses situation.
Tip #1) Know exactly what owning an exclusive territory can and cannot do for you. A franchisor or business opportunity company may make claims about you owning the territory. However for many who start a dollar store the real competition comes when a big national company comes into your town and opens right down the street from your store.
Tip #2) Know the exact fees being charged. Every dollar store expert earns money for their services. Some may charge a few hundred dollars. Others may end up billing a few thousand. For some companies after all is said and done there are earnings of many thousands associated with helping open dollarstore businesses. This comes in the form of straight out fees, designated franchise fees and costs, vendor commissions, and many others.
Tip #3) Speaking of franchise fees; know exactly what those extra costs mean to your business. The franchisor gets paid first whether you make a profit or not. Be sure you need all the help being offered. Be sure you can still make a profit. There are some instances where selecting a franchise company might be best when you start a dollar store; be sure your dollarstore is one of those.
As with all dollar store experts franchise companies can provide valuable support as you start a dollar store and then grow your business. However there are fees and costs required before and during the operation of your business. Franchise companies also have defined actions that franchisees must complete. For some new business owners the support is worth it, but for others this is not the right path to follow. Complete thorough due diligence and then make sure all of the terms and conditions are right for you and your situation.
To your success when you start a dollar store!
About the Author
Learn how you can Start your own Dollar Store Business. Bob Hamilton is an entrepreneur, author, writer, business consultant and trainer.
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