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    7 Replies Latest reply on Aug 13, 2008 2:48 PM by CoolHandMatt

    Franchise start up? Help!!

    ZetaMonkey Newbie
      Hello SBO community,

      I have a few questions about putting together and effective business plan to open up a franchise. I'm currently reviewing Play n Trade's UFOC but have not signed any contract or made any planning yet.

      Should I review the franchise UFOC with and attorney before creating a business plan?

      Also I am thinking of creating an LLC to offer my investors limited liability. Should I incorporate prior to making my plan?

      When creating my business plan is it worth while to hire a professional planner to do so? I'm thinking of hiring planyouridea.com .

      Thank you,

      ZetaMonkey
        • Re: Franchise start up? Help!!
          seeker Wayfarer
          Hey Zeta,
          Where do you plan to open it?
          • Re: Franchise start up? Help!!
            LUCKIEST Guide
            Franchise start up? Help!! How soon do you plan on opening??

            Should I review the franchise UFOC with and attorney before creating a business plan??
            YES, Everybody in business should have or use both an Attorney and an Accountant

            Should I incorporate prior to making my plan?? Again talk to your Lawyer

            When creating my business plan is it worth while to hire a professional planner to do so??
            YES and NO You can start on your own, or go on line or talk to SCORE
            SCORE is FREE.

            Good luck, LUCKIEST
            1 of 1 people found this helpful
            • Re: Franchise start up? Help!!
              Lighthouse24 Ranger

              Ideally, you'd have a business plan 80 percent done before requesting the UFOC, and you'd use it and an experienced franchise attorney to complete the rest. Yes, if you have the UFOC in hand, it's time to find an attorney.

              Your plan would normally lead you to select the type of business structure you need -- so you'd typically have the business plan done (or nearly done) before incorporating the enterprise. Although there are valid arguments on all sides, it is my experience than an LLC can limit your investor pool (because they have no control over tax issues -- what's passed through is passed through). A C-corp would be better in my view, but there are various lines of thought on that.

              I know nothing about planyouridea.com. I know that I couldn't/wouldn't write an "investor ready" plan for $400 -- so I guess if it's a good plan, it's a good deal. I would try to take advantage of any free resources you can (as Luckiest mentioned) before spending money.

              Hope this helps. Good luck with your plan and new enterprise.
              • Re: Franchise start up? Help!!
                WeddNPlanner Newbie
                I actually used planyouridea.com for my business plan, and they did a really good job. Throughout my journey with them, they gave me advice and definitely wrote a solid plan for me. I was a bit skeptical myself because people were quoting $3000, $5000 for a business plan, and I just didn't have that kind of money to spend on a plan, and even if I did, I probably wouldn't. But I really feel like I made a great choice going with planyouridea!!

                Good Luck!
                1 of 1 people found this helpful
                • Re: Franchise start up? Help!!
                  CoolHandMatt Wayfarer
                  If your buying into an established franchise you shouldn't need a business plan just money to buy it. They have an established business plan and that's part of what your buying. its like buying a subway of mcDonalds they already have a successful business model and have already run the numbers, they just need to be applied to your specific situation.

                  However if you do need a business plan I would not go and hire ANYONE. There are too many resources that are free that can help you with this. I'm sure in your area there are Small business Developement centers, Score counselors (even though I would not recommend score for anything else), sample business plans online. Also check with your local library, they will have tons of books and can help you get into contact with local free services.

                  As far as seeking a lawyers advice is definitely worth it. I just wouldnt go overboard.

                  In my experience an LLC is a waste of time. Legally (and im not a lawyer) it doesn't offer much protection and is not much of an improvement over a GP. My advice is incorporate, the formalities really arn't that bad and the benifits greatly outweigh the hassle. Its no more difficult to incorporate than it is to open an LLC and you get more bang for you buck. Also this way you never have to worry about changing your entity if it grows larger. I was skeptical at first and wasnt thinking of incorporating but it have been pretty easy and well worth it.

                  Ok thats all I got.
                  BTW Take a look at my website and let me know what you think. www.CatchAClue.net