Franchising Questions, Answered

SMB Franchise Advisors is a full-service franchise consulting firm that helps business owners prepare, launch, and grow their franchise systems. Whether you are looking to franchise your business for the first time or are an existing franchisor looking to scale, we guide brands through every step of the franchising process, from legal documentation and operations manuals to marketing strategy and franchise sales support.

SMB Franchise Advisors was founded in 2009 by our Founder and CEO Steve Beagelman and has been helping brands franchise for over 17 years.

When Steve started, he had a small team of 4 people (including Joanne, Ed, and Ken) who had extensive experience in sales, finance and operations related to franchising. Since then the team has grown to 20+ people with subject matter experts and leaders in franchising in all areas of the industry.

We have helped over 600 brands launch into franchising and grow as national and international franchise systems.

At SMB, “it is all about the relationship” which is our tagline and we live by this every day. Our team has real-world experience as franchisees, franchisors, and C-suite executives, meaning we have lived the journey ourselves. We take a hands-on, collaborative approach and treat every client like our own brand, not just a project.

Throughout the year, we host events and webinars for both networking and education. We bring our clients together to meet and get to know each other, stay on top of industry trends, learn more about franchising and connect with trusted suppliers. Our Annual Summit is held in December and is the must-attend franchise event of the year. This is a free, invitation only summit and clients from all over the country attend. We welcome the newest brand founders to get to know the rest of the SMB Franchise Family, from established brands, supplier partners and the occasional franchise celebrity.

Our connections become your resources. We have vetted countless industry suppliers in franchising who have a track record helping emerging and established franchise brands.

For most of our projects, you have access to our entire team. You will have a project leader who is your key contact, and you will work directly with our team of experienced franchise professionals including our Founder and CEO Steve Beagelman, our Chief Growth Officer Brian Luciani, our CMO Dawn Abbamondi, our Chief Development Officer Joanne Hoyer, and our full team of development associates and specialists. You will always have direct access to the people working on your brand. With a strong team of subject matter experts, we dive into the detail in all areas of the franchise from legal and finance to marketing and sales as well as your franchise operations, training and technology. Our team roster is on our About Us page where you can connect with them via LinkedIn.

More than 70% of the SMB team have achieved their CFE designation from the International Franchise Association (IFA) and continue to stay engaged in industry education to renew and maintain certification. In addition, newer team members are actively working on achieving their first CFE to offer current and best in class service to the founders and franchise leaders who seek our guidance and support.

This is very common and why we are a great match for you. Each of our senior leadership team are subject matter experts, from our CDO to our COO (and every role in between including Finance, Information & Technology, Marketing and more.) We know franchising. You know your business. Together, we will work to make sure that your franchise offering, system and strategy are aligned with your goals and help you to achieve your dreams through franchising.

A strong candidate for franchising covers a number of areas. Typically the business has a proven and profitable model, documented systems and processes, a recognizable brand, and the founder or business owners want to expand and grow beyond their current locations or the territory served. If you are unsure whether your business is ready, our team will assess your concept and give you an honest evaluation.

In the past 17 years, we have worked with over 600 brand founders and of those, we had honest conversations with several owners who focused on areas we told them needed work. They returned to us in a year or a two, ready to take the next step. At the same time, we also had frank conversations that the business wasn’t ideal for franchising for one reason or another.

We try to make it clear that franchising is hard work and isn’t right for everyone.

For the people who want to scale their business, there are other options that can be pursued such as executive coaching or expanding company operations.

Not necessarily. While having multiple locations or covering a large territory or metropolitan market with a larger staff can help validate your concept, many successful franchise systems have launched from a single location. Many solopreneurs with a single operating unit are able to successfully expand as a franchise brand. What matters most is that your model is proven, profitable, and replicable. Our team will evaluate your specific situation and give you an honest assessment. We won’t pressure someone to start franchising if it doesn’t have the potential as a brand, in the market or demand for the products and services.

The franchisability of a business is dependent on the concept, what is happening in the industry, the strength of the model and founder mindset. While franchise systems benefit from at least two to three years of operating history, some younger concepts with a strong track record and clear market demand can, and should, move forward sooner.

Our team is able to help you evaluate the right timing for your specific situation.

You do not need a trademark to get started. We have a large and growing number of clients who are in the process of franchising and did not have a federally registered trademark when they started. We counsel founders on the process and can help find a trademark or intellectual property attorney if your franchise attorney does not have that expertise on staff. We always recommend registering your name, and ideally your logo, too as you start the process to franchise. Many brands will have their trademark within the first year of starting the process. Your brand is one of your most valuable assets and protecting it early is critical. Franchisees need to know that they will not have another business operating using the same or a similar name and getting your federally registered mark, not just a state trademark, is a fundamental step. Our team will help guide you through the registration process and getting started on obtaining your trademark.

Franchising is an incredible growth strategy for the right business, but it is not the right fit for everyone. The best way to find out is to have a short, no obligation conversation with our team. We will ask the right questions, evaluate your concept, and give you a transparent assessment of whether franchising makes sense for you, your brand and the goals you have from expanding this way.

Franchising and licensing are two different ways to expand a business, but when it comes to building a scalable and protected brand, franchising is almost always the stronger choice.

Licensing allows another party to use your brand name or product in exchange for a fee. While it may seem simpler, licensing offers very little control over how your brand is represented and leaves you vulnerable without the proper legal protections in place.

Franchising is a comprehensive, legally structured business relationship that puts you in the driver’s seat. You maintain control through documented systems, brand standards, and legal agreements that protect everything you have built. Your franchisees are invested partners who are committed to your brand’s success because it is their business too.

If you already license your brand to other operators, it is worth a closer look. A license can meet the legal definition of a franchise even when the agreement never uses the word, generally where you charge an initial fee, collect ongoing fees, and provide training or set standards the other party has to follow. If that sounds like your setup, a franchise attorney can tell you where you stand, and our team can help you work through the options.

The typical timeline to complete the franchising process is six to 12 months. We can complete the work in about six months, but we will break the project payments into 8, 10 or 12 payments depending on your ability to invest the time and finances to complete the project deliverables. One critical component of franchising is the Franchise Disclosure Document “FDD” which is generally completed within the first three to four months. This will allow you to begin offering and awarding (also known as selling) franchises while the remaining deliverables are finalized.

Creating a franchise system involves several key components including developing your legal Franchise Disclosure Document (FDD) and Franchise Agreement (FA), building a comprehensive franchise operations manual, creating an initial training program for franchisees, developing your marketing and sales strategy, establishing brand standards, and building the infrastructure to support and grow your franchisee network.

The Franchise Disclosure Document which is also known as the FDD is a federally required legal document that provides prospective franchisees with detailed information about your franchise system including fees, obligations, financial performance, and more. If you intend to sell franchises in the United States, you are legally required by the Federal Trade Commission FTC to have a compliant FDD.

Yes. While SMB Franchise Advisors handles the consulting side of the process, we partner with a trusted network of experienced franchise attorneys who handle the legal aspects of your FDD and Franchise Agreement. We can facilitate those introductions and work collaboratively with your legal team throughout the process.

The time commitment varies depending on how quickly you want to grow and how involved you want to be in the process. In the early stages, most business owners can expect to dedicate a few hours per week to working with our team. Franchising your business does not require a full-time commitment from day one and we will work around your schedule to keep things moving forward efficiently. Over time, the time you spend in your foundational business will shift to the franchise company and eventually become a full-time effort. The amount of time and dedication you have available will impact your growth and development timeline.

No. You do not need to hire additional staff to get started. SMB Franchise Advisors acts as an extension of your team throughout the process. As your franchise system grows and you begin awarding franchisees, you may eventually want to add support staff, but that comes later and we will guide you through that process when the time is right.

No, but this is a best-practice as you grow. SMB Franchise Advisors is active in the IFA, sits on leadership committees and task forces. We are a Supplier Forum Advisory Member and an advocate for new members.

The initial investment to franchise your business typically ranges from $125,000 to $150,000 depending on how fast you want to scale and expand. This budget covers franchise consulting, legal fees for your Franchise Disclosure Document and Franchise Agreement, and marketing materials and assets needed to launch your franchise system. Our team will walk you through a full breakdown of costs during your initial conversation, so you know exactly what to expect before making any decisions.

Franchisor revenue typically comes from initial franchise fees, ongoing royalties, and in some cases technology fees, marketing fund contributions, and supplier agreements. The amount you earn depends on the size of your system, your fee structure, and how many franchisees you award and the ongoing expenses of operations support, legal, marketing, sales and technology.

Most franchisors begin to see a return once they have awarded their first several franchisees and royalty income begins to flow. This can be impacted by the average unit volume of your franchisees and how quickly they ramp up sales to the targeted volume. The timeline to see a positive return varies, as you can imagine, by concept and growth pace. It is good to understand and accept that franchising is a long-term investment in building enterprise value. The larger your system grows, the more significant the return becomes. Foundationally the franchisees have to make money for you to make money.

The most common fees include an initial franchise fee paid at the time of signing, an ongoing royalty fee which is typically a percentage of gross revenue, a marketing or brand fund contribution, and in most cases a technology fee and/or software fees. Our team will help you set fees that are competitive within your industry and sustainable for both you and your franchisees.

Yes, we do. As a member of the IFA VetFran program, we offer a discount to US Military Veterans for our services.

No, our fixed price packages run for a set duration and are billed on a monthly basis with a timeline to create and provide all deliverables. This typically includes FDD consultation, marketing collateral, sales and compliance training, development strategy and franchise launch action plan, plus a comprehensive franchise Operations Manual based on your current standards.

Our services generally cover three aspects of franchise growth phases: Prepare (getting ready to franchise – not all clients need this phase as they come to us ready to get started), Launch (converting to a franchise system, establishing the initial terms, FDD and support structure for franchise operations as well as the marketing and sales for franchise development), and Grow.

This last service offering is for legal franchise brands and services will depend on where you are in the process of developing your brand. Some clients need FDD updates, analysis and creation of an Item 19 or Financial Performance Representation and modifications to your terms/fees. In each launch project, we include assisting with FDD development, creating your franchise operations manual and training program, developing your franchise sales and marketing strategy, building out your brand standards, establishing franchise candidate standards, and providing ongoing coaching and growth support. We work on a project basis for all of our services, Prepare, Launch and Grow. Prepare and Grow are the most customizable for where you are and what you need in your franchising journey.

In addition, you are invited to events that we host each year. These include webinars, industry networking and education seminars. Each year we host the Annual SMB Summit in December. This is a no-cost, invitation only summit. Our franchisor clients attend, traveling in to the Philadelphia area from all over the country. Meet the entire SMB Franchise Family, including established brand leaders, supplier partners and some of the most respected franchisors.

We work with both emerging, or start up franchise systems as well as established franchise brands. Whether you are just getting started or already have an existing franchise system and are looking to scale, our team has the experience and resources to support you at any stage of growth.

As we assess existing brands, we make those critical connections for the next-level resources you need. Our vetted contacts with industry suppliers are ready to help our newest, emerging franchisors.

We will craft the right project scope to support your goals now and into the future.

Absolutely. If you have previously worked with another consulting firm and feel you need a stronger partner to help you grow, we welcome that conversation. Our team will assess where you are in your franchise journey, identify what is working and what is not, and put together a plan to help you move forward with confidence.

We work across a wide range of industries including food and beverage, health and wellness, fitness, home services, children’s enrichment and childcare, senior care, retail, technology, and more. If you have a scalable business concept, we want to hear about it.

Yes, that is an important aspect of launching your franchise. We support your franchise development efforts by helping you identify your ideal franchisee profile, build your sales process, and help you to connect and engage with qualified candidates through events, expos, and broker networks.

We make the connections to the sales experts who can represent your brand, handle lead inquiries and help you award franchise owners to join your system. Our referrals to these support teams in sales and development are welcome and help the brands who work with SMB to get started quickly on their franchise expansion.

Absolutely. Our team supports the development of your franchise marketing materials including drafting your website text, trifold brochures, digital assets, and Discovery Day presentations. We also help you build a targeted sales process designed to attract the right franchise candidates. We will assist in the development of a Discovery Day schedule, some brands will call this Meet The Team Day or Decision Day.

Our relationship does not end at launch. We continue to support our clients through franchise sales strategy, Discovery Days, franchisee onboarding, and long-term brand growth planning. We are in it with you for the long haul.

Need a connection to a franchise sales organization (FSO)? Not sure which franchise sales broker network to join? We understand this can be a difficult decision and we work together to assist. We facilitate critical connections to sales experts who will represent your brand, handle lead inquiries and help you award franchise owners to join your system. Our referrals for sales and development are the launchpad for the brands to start quickly on franchise expansion.

Yes. Developing a comprehensive franchise compliance and operations manual along with the initial, pre-opening training program is a core part of what we do. We work with you to document your systems, establish brand standards, and create the tools your franchisees need to not only open, but to successfully operate and represent your brand.

The first step is a conversation. Reach out to our team and we will schedule an introductory call with our CEO Steve Beagelman or Chief Growth Officer Brian Luciani to learn more about your business and discuss whether franchising is the right path for you.

Once your consulting agreement is signed, we schedule a kickoff video call for you to meet the full SMB team. From there we begin the discovery process, diving deep into your brand, your systems, and your goals so we can build a franchise model that truly represents what you have created.