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Business View Magazine
14 Business View – October
Francising
CruiseOne, a travel agency franchise specializing in
the cruise business, discounts its franchise fee for people
with a successful track record in the travel industry,
according to CruiseOne’s Senior Vice President Debbie
Fiorino. Experienced franchise candidates with the
appropriate certifications can save up to 95 percent on
their initial franchise fee based on how much they’ve
made in the past.
In the last several years, many franchise companies
have taken steps to reduce the financial burden
of running a franchise by reducing franchise fees,
eliminating office space and vehicle requirements,
and working with vendors to negotiate the best deals
possible for franchisees.
“We have a long-term track record of success with
suppliers,” said U.S. Lawns President Ken Hutcheson.
“That’s helped sweep the issue of payments off
the table, so franchisees can lease trucks, materials,
supplies, and equipment at little to no expense in the
early months.”
“We have vendor relationships that give very healthy
discounts to franchisees. And we also allow franchisees
to do their shopping at the local level if they can find
a better price,” said Robb King, vice president of
operations for Paul Davis (the parent company of low-
cost franchise Paul Davis Emergency Services, which
specializes in emergency mitigation and reconstruction).
Alongwith financing the start-up of their new franchise
business, franchisees must ensure they have enough
liquid capital to run the business until it starts generating
positive cash flow. Franchisors told us this is sometimes
a challenge in the low-cost space because franchisees
have just enough cash to fund the initial start-up but not
enough cash to cover expenses early on.
WIN Home Inspection works with a banking partner
to offer franchisees operating capital beyond what is
needed at start-up. This helps new franchisees cover
their vehicle, tools, and marketing costs in the first year,
President Steve Wadlington said.
People considering any franchise opportunity should
