Home > Startup > Franchise Center > How Do I Determine if a Business Opportunity is a Franchise for Sale?

How Do I Determine if a Business Opportunity is a Franchise for Sale?

As you do your initial research to own your own business you will discover that there are many differences. One major difference is the type of opportunity. There are two types of opportunities, business opportunities and franchises. You may wonder how you can tell the difference between these. One way to tell the difference between the two is whether or not you will have to pay any royalties to the company (more on the differences here). If you have to pay royalties to the company, then the business is most likely a franchise.

Purchasing a Franchise for Sale Will Include Making Royalty Payments

You may hesitate at the idea of having to pay royalties when you find a franchise for sale. However, what you need to consider is the percentage amount of the actual payments. Is the percentage calculated on your total gross sales or net sales? There is a difference between the two, which can affect the amount you have to pay. On the other hand, paying royalties gives you access to ongoing training, support and advertising from the company, for no additional costs, in some cases.

Learn more about the differences between franchises and business opportunities here.

This article was originally published by Franchise Solutions

Published: June 12, 2013
3548 Views

FranchiseSolutions.com

At Franchise Solutions, we’re franchise people that have put the Internet to work to help future business owners find the right business to own. With hundreds of business opportunities and franchises to choose from, our sites will help you pare down your choices to the ones that fit your career goals and lifestyle dreams.