Common Questions About Franchising

Can you summarize the franchise process?

Franchising has become a very popular means for business expansion. The process can provide excellent returns on investment if the franchisor can successfully create a profitable, turnkey operating environment. Some of the country’s most successful companies are franchised brands. Companies such as Subway, H&R Block and 7-Eleven all began franchising because their pilot locations were posting big profits using a documented formula of success.

The most appealing benefit of opening a business within a franchise system is the ability to utilize proven systems that make money. Sure, trademarks and market advantages can sometimes be enough reason to open a franchised business. But for most people, the systems within the franchise are the most valuable component because there’s no reason to waste time and money attempting to create your own systems. So, my final piece of advice is to search for a franchise system that provides systems that are unique and proven. Reach out to other franchisees and ask how the company’s systems help make them money. The answer should be clear if the systems are efficient.

How can you trust that a franchised brand is legit?

Franchising is regulated by the FTC and in certain cases, individual states. Franchise companies are required to comply with both Federal and State franchise laws and regulations related to the offering and sale of franchises. You will find that all compliant franchise companies follow similar paths in introducing prospective franchisees to their franchise. For example, you must receive the franchisor’s Franchise Disclosure Document (FDD) at least 14 days prior to signing the Agreement or paying any money to the franchise company. The FDD includes the Disclosure, Franchise Agreement and additional Exhibits. The FDD also provides information about the franchise company and various contractual provisions contained in the franchise agreement. You will learn a great deal about the company and the franchise business through your careful review of the documents.

How do I read the FDD?

Every section within the FDD is important but some sections contain more meat than others. The sections are divided into “Items” and each item has its own unique purpose. A typical FDD can comprise 100+ pages so it’s difficult to dive into each item here. However, here are some helpful tips when reviewing the FDD.

Read the (FDD) and absorb everything contained within it so that you can fully understand the investment, the business and the risk. The FDD contains several items that should provide you with specific information on the expected investment and expected return based on real data from current franchisees within the system.

Items 5, 6 and 7 detail the required investment along with any regular fees that will be incurred after you open the business. Dig deep into these items and don’t be afraid to ask questions.

Item 8 is extremely important because this section provides details on the list of approved and/or required vendors. In some cases, a franchisor may benefit from the relationship via rebates so make sure to dive deep into this section because you’ll be stuck once the franchise agreement is executed. TWO MAIDS & A MOP™ does not currently receive rebates.

Item 19 is a very important piece of information contained within the FDD. In our case, Item 19 contains real data from all affiliate-owned locations that have been opened for at least two years. The purpose is to educate the potential franchisee on the cash flow abilities of their future franchise.

What qualifications are required to become a TWO MAIDS & A MOP™ franchisee?

We are actively looking for individuals who exhibit a strong sales & service personality. In addition, we are only interested in individuals who are willing to implement and execute our proven systems. Franchisees must meet minimum financial qualifications necessary to fund the opening of the franchise and the initial franchise fee. For more detail, please refer to our Are You Qualified? page.

How large is a franchise territory and will I have an exclusive territory in which to operate?

You will own exclusive rights to a territory upon execution of a franchise agreement. Typically, our minimum territory will be comprised of at least 50,000 US census households with the maximum size of 400,000 US census households. Of course, there may be exceptions based on the demographic breakdown of a territory that allows for a smaller or larger territory than ourminimum or maximum designations. The average territory is comprised of approximately 150,000 US census households.

How long does it take to begin operating a franchise?

We estimate that the typical length of time between signing the Franchise Agreement and opening a Franchise is 2-4 months. This includes the time necessary for you to complete our initial franchise training program, setup your office, market your business and hire and train Team Members.
Refer to our Typical Timeline page for a detailed look.

Do you recommend that I visit the home office?

Yes, we definitely encourage a visit to our office. This will enable you to meet our corporate staff members and view our operations in person. We periodically schedule Decision Days inside our home office in Birmingham, AL. The purpose of Decision Day is to educate you on our story and inform you on the investment potential. Please contact us to learn more about available Decision Day openings.

Can I be an absentee owner?

Yes, but it’s important to understand that your Office Manager may need to receive some type of equity ownership since you’re not active in the day to day operations. Our long history of operating performance has taught us one important lesson: the most successful employee doesn’t actually act like an employee. Having an ownership mentality is extremely important for any business but it’s even more important for our type of business. So, you can own a franchise territory as an absentee owner but it’s essential that you consider who may serve as the Office Manager of your new business. The person will need to be a self-starter, organized, structured and trustworthy. Finding and keeping this person may be your most important job as the franchise owner.

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