2. What to Consider before Becoming a
Franchisee
• Known as the father of herbal encapsulation, Kenneth Brailsford dedicated a large
portion of his career leading health-based companies, such as Nature’s Sunshine
and Nature’s Labs. Additionally, Kenneth Brailsford founded KEB Enterprises, LLP,
a holding company he continues to lead as a general partner. Mr. Brailsford also
invests in convenience stores and Subway franchises through KEB Enterprises.
3. What to Consider before Becoming a
Franchisee
• From financial responsibilities to logistics, becoming a franchisee comes with
numerous responsibilities. The following are areas to consider before investing in a
franchise.
4. What to Consider before Becoming a
Franchisee
• 1. By law, a franchisor is responsible for providing each franchisee with a uniform
franchise offering circular (UFOC) that outlines standard items of operating a
business.This document explains contracts, trademarks, financing, and fees. In
terms of expenses, an interested party should make sure he or she understands all
the franchise costs involved as well as any hidden fees related to legal services,
training, and insurance.
5. What to Consider before Becoming a
Franchisee
• 2. Financial website Bankrate suggests reading the FederalTrade Commission’s
document Buying a Franchise: A Consumer Guide. A realistic point of view on
franchise ownership, the guide discusses terminations and renewals, how to select
a brand to invest in, and areas to research to determine the best fit.
6. What to Consider before Becoming a
Franchisee
• 3. Committing time to preparing a business plan is of the utmost importance,
especially when obtaining bank financing. A lender will request this plan to
determine viability of a business under a borrower’s ownership. Business plan
software is available to assist with writing the document.
