Buying a nursing staffing franchise has potentially many key benefits when starting a new healthcare agency. Let’s take a look at some of those key benefits are understand the value of proposition when entering into a franchise.
This type of business opportunity has many pros and cons, but we will mainly be looking at the benefits and how they can affect you in your business decision.
Benefits #1: Plug and Play
When buying a franchise, you will not have to worry about many aspects of the business startup process. This has been done for you already by the franchise, they typically will provide you with the forms you will need, the logo you will use, you will have to use the franchise name and the software is also provided for you. You will have to abide by their rules and processes. Nothing about what you will have to do will be unique to your franchise. The franchise has rules that you will have to follow and as long as you follow those rules you are allowed to continue managing the franchise.
Benefit #2: As long as you are willing to spend you are fine.
Buying a franchise can be expensive: Typically the fees run from $25,000 to $100,000 for the franchise fee. The franchise fee is the fee they will charge you to allow you to use their name. The Franchise will expect you to represent them is such a way that they determine what that will look like. You will be expected to rent a location, buy furniture, buy their software, etc.
Benefit #3: Ongoing support
You will be charged a continual franchise fee and that fee will depend on your gross sales. Sometimes the fee starts at a certain amount monthly and grows as your gross sales grow. The franchise fee is in place for the franchise company to continue providing you support and the licensing fee to continue using their name. Fees can vary, but typically you can expect between 5% to 10% of gross sales.
Benefit #4: Selling the Franchise
This is a huge benefit, because when you at one point feel this business is no longer what you want and wish to sell it, they typically help you sell the franchise. You will have to typically pay what is called a “Sale Multiplier” basically what that means is you will only get a certain percentage of the sale minus any expenses you owe the franchise. This is something you need to be aware of because the franchise is never really yours, it belong to the franchise company and you must follow the rules.