Franchise Terms That You Should Know Before Investing
Clothing franchise opportunities are an exciting way to become your own boss and break into retail and an industry that is robust and growing. But becoming part of a franchise clothing brand can be a little confusing and overwhelming at times, in part because of the language and jargon you’ll come across that you might not be familiar with. Let’s take a look at a few words or terms you’ll be introduced to when you start the process.
Franchise Disclosure Document
A franchise disclosure document, or FDD, is a very important document that all franchises generate and must make available to serious potential investors. In it, you’ll find out everything you need to know about any investment you might make in clothing franchise opportunities like ours, including the history of our brand, our team leaders, the investment numbers, and what you can expect from us in the way of training and support. You’ll also learn more about what’s expected of you as a boutique owner and any monthly fees you’ll be responsible for. Because an FDD is such an important document, you’ll be given at least 14 days to read it before anything can be signed, and many of our franchisees have reviewed their copy of our FDD with the help of an attorney.
A franchisor is another name for the brand and the people behind it. The franchisor sells the right to open stores and sell products or services using its brand name, expertise, and intellectual properties to investors, the people who will become franchisees. There are a number of benefits to taking advantage of clothing franchise opportunities, as compared to starting your business from scratch, including brand awareness, franchise training and support, and time-tested business models that take a lot of the guesswork out of running boutiques like ours.
The franchisee is you, the investor, who becomes part of our brand family after going through a number of steps that allow all parties to get to know each other and to make sure there’s a good fit. Franchisees pay a one-time franchise fee to do business as part of a brand, and receive a number of benefits as a result, including teams of fast-fashion experts in day-to-day operations, marketing and advertising, and location scouting and real estate. Not all clothing franchise opportunities make these benefits available to their franchisees, but at Apricot Lane, we make sure they’re part of the advantages you’ll see as part of our brand family.
A franchise fee is a one-time sum you’ll pay as part of doing business with any franchisor. In our case, it pays for your onboarding, your pre-opening training, and the right to use the Apricot Lane proprietary materials and resources. In our case, that fee is $34,500, which is one of the most affordable in our industry.
Start-up costs are all the monies you’ll need to have available to pay for fees, real estate leasing or purchase, inventory, and the travel and lodging you’ll be responsible for during your pre-training, among other items. Your franchise fee is also included in this amount.
To find out more about an investment in an Apricot Lane Boutique, get in touch with us today!