What is Franchising?
Franchising is a method of distributing products or services. At least two levels of people are involved in a franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor’s name and system. Technically, the contract binding the two parties is the “franchise,” but that term is often used to mean the actual business that the franchisee operates.
What is a Franchise Disclosure Document and how do I obtain the document?
The Franchise Disclosure Document (FDD) will describe in detail how the Monkey Bizness franchise relationship operates and will specify how the company is organized. It will also contain franchisee contact information so that you can contact our owners to get the information needed for your research. Once you complete our application and after our initial phone call, we will forward it to you.
What are the franchise and royalty fees?
Our initial franchise fee is $27,500. We do significantly reduce this for additional locations you wish to open. Our continuing royalty fee is 6% of gross sales and our advertising fee is currently 1% of gross sales. During your first 12 months open, we do reduce your royalty fee to 3%.
Do you provide financing for franchisees?
We do not provide financing for franchisees. Our franchisees have secured financing multiple ways including through SBA loans, personal investments, and friends and family.
What is an SBA loan?
The US Small Business Administration 504 Loan or Certified Development Company program is designed to provide financing for the purchase of fixed assets, which usually means real estate, buildings and machinery, at below market rates. An “SBA Loan” is not obtained from the US Small Business Administration, rather it is obtained from a normal bank who uses the 504 program to make the loan.