WIRTH BUSINESS CREDIT Franchise Cost and Profit Margin – Review
With Winmark Capital Corporation as its parent company and its operations spread across the United States and Canada, the Wirth Business Credit Franchise was founded in 1988 and started franchising the same year. Its products and services include the provision of financing to small and medium scale businesses.
Other services include the provision of an array of small scale equipment leasing to businesses. The costs of these leased equipment fall usually within the range of $5,000 to $250,000. Its corporate headquarters is located in Minneapolis, Minnesota.
Today, its parent company, the Winmark Capital Corporation has franchise-owned businesses exceeding the 900 mark, all spread across the United States and Canada.
Wirth Business Credit Franchise Financial Requirements
How much does it cost to open Wirth Business Credit franchise?
Is Wirth Business Credit a franchise that is expensive? What is the average Wirth Business Credit franchise fees? Interested franchise candidates have a financial obligation to meet before they are granted access to the use of the franchisors logo, the use of the franchisors proprietary tools and products, operate under its brand name and access to the benefits and financial rewards the franchise opportunity offers.
Meeting the financial requirements is compulsory to all prospective franchisors as failure to do so results in the disqualification of the application. Some of these financial requirements that must be met include an Initial Investment sum ranging from $39,630 to $74,510, a franchise fee of between $40,500 to $73,700 and a 10 year franchise renewal agreement fee of $5,000. These are required to start a Wirth Business Credit Franchise.
Wirth Business Credit Franchise Training and Support
All new Wirth Business Credit franchisees undergo a period of mandatory training that lasts a period of 5 days. This training is aimed at teaching the basics of running a Wirth Business Credit Franchise.
The training covers areas like sales and marketing, development of a business plan, business management skills, and several other aspects of equipment leasing and business financing. At the end of the organized training session, new franchisees would have gained a full understanding of the procedures of efficiently running this franchise opportunity.
Support is also given to all new franchisees to ensure they are not left stranded at any point during the duration of the franchise contract. This is to ensure that their chance for success in their businesses is high. The areas granted support is solely determined by the franchisor, and reserve the right to change such as the need may arise.
Wirth Business Credit Franchise Franchise Renewal
The Wirth Business Credit Franchise has a franchise renewal agreement with all its franchisees. However, for a franchisee to qualify for a franchise renewal, he/she must pay a renewal fee in the sum of $5,000 to qualify.
This franchise renewal agreement has a term of 10 years. All Wirth Business Credit franchisees are eligible for franchise renewal once the payment conditions are met.
Wirth Business Credit Franchise Territory
The Wirth Business Credit franchise does not provide exclusive territories for its franchisees. This means the franchisee will have to face competition from other Wirth Business Credit franchisees, the franchisors channels of distribution and competing brands under the control of the franchisor all operating within the same territory.
Wirth Business Credit Franchise Obligations and Restrictions
Although the franchisor does not restrict the franchisee from having other businesses other than that belonging to the franchisor, however, the franchisee is prohibited from selling any other products not approved by it. Also, in the case of ownership of a more than one business, the franchisee is allowed to employ the services of a manager or consultant to manager such businesses.
This article has focused on the Wirth Business Credit franchise, supplying basic information on the procedures involved in joining this franchise opportunity. Interested investors are advised to also visit the franchisors website, so as not to miss any important update to the information on its franchise opportunity.
Profitability of Wirth Business Credit Franchise Opportunity
As with any business concern, the location of the business impacts its profitability. Also, a factor such as efficiency in regulating the cash flow structure of the business is essential.
Increasing sales through the adoption of effective marketing strategies, while at the same time ensuring that wastages resulting from unnecessary expenditures are eliminated. This will greatly ensure the financial success of the business concern.
How to Open Wirth Business Credit Franchise
To own a Wirth Business Credit franchise, interested prospective franchisors are to simply visit the franchisors website, fill and submit the online application form available in the franchise section of the website.
Once submitted, the contents of the application form are checked for eligibility. If qualified, a representative from the franchisor contacts the prospective franchisor using the contact details supplied during the application process.
During the investment talks between the franchisee and the franchisor, the franchisor hands over the Franchise Disclosure Document (FDD) to the franchisee as required by law. A period of 10 days is given to the franchisor to go through the document and to return it with a proof of having sought legal counsel.
It is strongly advised that all franchisees should seek the services of a franchise lawyer at this stage of the application process, as the contents of the Franchise Disclosure Document are legal in nature. The advice of seeking the services of a franchise lawyer is to ensure that conflicts between the franchisor and the franchisee are reduced to the barest minimum.