Before taking the plunge into business, it’s advisable to have a general understanding of what you are signing up for. Without such knowledge, you could be making a decision that will have severe consequences down the road. If you’re interested in a franchise opportunity in the financial sector, check out http://tworldfranchise.com/ for more information. That said, here’s what you need to know about opening a Transworld Business Advisors franchise:
1. Franchisor Details
Transworld Business Advisors is a business brokerage firm that helps people buy and sell businesses. The company was founded in 1979 and is currently one of the largest firms of its kind in the world. The firm started franchising in 2010 and currently has 300+ locations. The services the company offers include:
- Business valuations
- Brokering mergers and acquisitions.
- Listing businesses for sale
- Assisting with due diligence
2. Financial Requirements
To be part of the Transworld network, you’ll need to pay an upfront franchise fee of $49,500. A franchise fee is like a security deposit that shows the franchisor you’re serious about running their business. The amount is then used to cover the cost of getting you started.
Opening a Transworld Business Advisors franchise also requires a minimum net worth of $100,000. A net worth requirement indicates the value of assets you have available. It also shows the franchisor that you can weather any storms and still be able to keep the business afloat.
You will also need to have at least $50,000 in liquid capital. The money helps you pay for overheads such as advertising, office space, supplies, and employee salaries. Such funds should be easily accessible, as you will need them when starting your franchise. Besides, since the initial phase of your business will mean making baby steps or learning the ropes, you will likely take some time before turning a profit.
Your total investment in a franchise unit will run between $75,000 and $98,000. All the same, the company has relationships with third-party lenders who can help you finance your investment. Getting funding will, however, be subject to credit approval.
3. Training and Support
You receive both pre-opening and ongoing support when you join the franchise. The firm has a two-week training program, allowing you to learn about business brokerage, building a franchise business from the ground up, franchise consulting, and more.
If you’re inexperienced, such training is essential in helping you understand the industry, navigating various bottlenecks, and learning different approaches to transacting effectively. In short, even without much know-how, the franchisor can help you get up to speed.
By using Transworld’s proprietary software, you can keep up with changes in the industry, including the listings in your assigned location. To help you realize your business goals, Transworld also offers an ongoing support program. It includes field training, search engine advertising, and more. The firm’s network of experts is on hand to address any of your concerns or queries. By so doing, you’ll always be in the loop, and chances of success will be higher.
4. Ongoing Fees
To keep your Transworld franchise, you will need to pay an ongoing royalty fee of 8% of your gross revenues- as detailed in the firm’s Franchise Disclosure Document (FDD). Transworld also charges a monthly brand fund or ad royalty fee of $50. The franchisor uses the fund fee to promote the brand and offset marketing expenses.
You may also take advantage of several other services the franchisor offers, including website development and design, lead generation, business coaching, and more. If you’re looking for turnkey solutions and a comprehensive package that will set you up for success from the get-go, then a Transworld franchise could be the right choice.
Is Transworld Business Advisors the Right Fit for You?
This might be the perfect option if you’re passionate about business and helping people. The acquisition or sale of a business is a significant decision for most people. As such, your role will be critical as it will involve forging relationships, leading a team, and helping people make the right choices.
A background in a business-related field such as finance, real estate, or even business ownership won’t hurt either. Plus, this is also a good option if you have an entrepreneurial mindset and are scoping out opportunities to be your boss.
Remember to pore over the FDD. This legal document contains all the information you need about a franchisor before finalizing your agreement. If anything is unclear, usually, the FDD will shed more light on the issue. And if a Transworld franchise seems like a feasible option, it’s always advisable to contact the business directly to kick-start the process.