How does it work?

Franchising has been around for a while – most likely because it’s a system that’s been successful. It works when an individual or group (the franchisee) establishes a relationship with a business (the franchisor) to help grow that business and distribute its product. The franchisee pays a franchise fee to use the franchisor’s business model and leverage its existing brand name, while agreeing to follow the operational terms of a contract, also known as a franchise agreement. With the support of an existing business model and a recognized brand name, the franchisee typically gets a quicker return on his or her investment.

Currently, there are over 18,000 franchise systems Globally, representing a range of industries. These franchise systems represent 3.2% of all businesses and approximately 35% of all retail and service revenue.

How much do Franchisees make?

We get that question a lot, but it’s difficult to answer since there are so many variables affecting a financial bottom line. The good news is, your earning potential can be as big as you want to make it. Aside from a stellar work ethic, here are a few factors that can determine your financial success.

  • The kind of franchise you choose is probably one of the biggest variables that impacts earnings. Make sure you’re looking at a business that offers services and products that are in demand. You won't make money if the business is in a sector that's oversaturated or about to implode.
  • The location of a franchise also determines your earnings. It’s important to choose a franchise located in a community that will want what your business is offering. Remember, traffic drives sales and sales keep a franchise healthy and growing.
  • Your ability to build strong customer loyalty contributes to the success of a franchise. Treat your customers like family – and they’ll keep coming back.

Why imaging centers?

In our 24-hour world, today’s consumers are busier than ever and want more from one location, whenever they want it. With an expanded high quality clinical diagnostic service, round-the-clock operations and numerous locations, easily accessible locations are exactly what the masses are craving.

Franchises that focus on selling just one type of product or service (fast-food franchises, for example) may have a limited customer base. On the other hand, owning a franchise that offers multiple diagnostic equipment allows you to meet a variety of clinicians and customer wants and needs, which can enhance your business. 

What's the best way to research a franchise?

Definitely do your homework. And if possible, talk to the men and women currently franchising with a brand you may be interested in. The more information you can gather, the better decision you can make. Here are a few helpful resources to jump-start your research. There’s so much more out there – just keep digging. And good luck!

How to speak the language

Brand:
The mark, name, logo and identity of a company or business, and a franchise system’s most valuable asset.

Broker:
An outside salesperson. For a fee, a broker will sell a franchise for the franchisor.

Business Acumen Evaluation (BAE):
Franchise qualification amendment that measures basic business acumen.

Business Conversion Program (BCP):
Franchising model where the Franchisee owns the land, building, and some equipment. The TM charge is lower for a Business Conversion center than for a Traditional location.

Business Leader Inventory (BLI):
Franchise qualification assessment that measures innate leadership competencies.

College of Operations Leadership (C.O.O.L.) Training:
Current Franchisee training program that is self-paced and could last up to 8 weeks.

Corporate (Corp):
Center listed in the Center’s Available List as a Corporately operated site.

Distributorships:
The right granted by a manufacturer or wholesaler to a business to sell its products.

Franchise Disclosure Document (FDD):
Provides information about the franchisor and franchise agreement, plus a complete description of initial investment costs. The FDD is typically shared after an initial application is completed.

Field Consultant:
Time Medical employee whose primary responsibility is to consult with franchise owners regarding their business – growing sales and profits and building an infrastructure to support it.

Franchisee:
The person that is given the right from a franchisor to do business under its brand name.

Franchise agreement:
The written contract between the franchisor and the franchisee.

Franchisor:
The business that grants the franchisee the right to do business under the franchisor's brand.

Franchise Sales Recruiter (FSR):
The person who works directly with franchisees and their center operations during the start-up period.

Franchise Regulation Body (FRB):
A government agency that regulates franchising

Goodwill center:
A franchise center available to purchase from a current franchise owner.

Gross amount:
The term refers to the total amount made as a result of some activity. It can refer to things such as total profit or total sales.

Initial Franchise fee:
This fee is the initial fee paid by the franchisee for the right to use a business’ brand name and business model, receive funding and other potential services provided by the franchisor. It is typically paid after a franchise agreement is signed.

Initial investment:
This is the initial cost of getting into business that includes the franchise fee, inventory down payment, cash register fund and costs for supplies, licensing, permits and bonds.

Multi-unit franchise:
Franchising multiple locations within a business at one time.

Net amount:
The term refers to the amount left over after all deductions are made. Once the net value is attained, nothing else is subtracted.

New Center Open (NCO):
Center listed in the Center’s Available List that has been open or operating for less than 12 months.

Royalty fee:
A continuing fee paid by the franchisee for the use of a brand and business model.

Shared profit split:
A franchise business model that splits gross profits between the franchisor and the franchisee.

Single-center franchise:
The traditional franchise model involving only one location.

Center Support Center:
Corporate headquarters in Hong Kong where all functions supporting a franchise operation are housed – e.g. Accounting, payroll, merchandising etc.

Turnkey:
A franchise that is sold to a franchisee fully equipped and ready for operation.

Vendor:
A supplier of products or services.

Under Construction (UC):
Center listed on the Center’s Available List as currently being under construction. This is usually a Time Medical Imaging Center site for a Traditional franchising opportunity.

Zero Franchise Fee (ZFF):
Designation for selected Corporate-own Center listed on the Center’s Available List that require no initial Franchise Fee.