Active Franchising

Campground Franchises

Campground franchises offer the franchisee a license or right to sell its goods or services and/or use its business techniques. The franchisees usually pay an initial fee to acquire this right, and thereafter pay a percentage of their gross sales to the franchisor throughout the term of their franchise contract. In return for these payments, Campground franchisees gain priveleges, including the right to sell a proven and recognized product or service, to use the franchisor's business practices, and to receive initial training and ongoing support.

In addition to the initial investment required for a Campground Franchise, you will also need money to sustain yourself, and the business, until it becomes cash positive. Remember, too, that projections may not be accurate. Market conditions can change and if it takes longer than originally anticipated for the new business to reach breakeven, you'd should have some emergency funds set aside, or it could mean the demise of an inherently sound business.

Investigate earnings claims. If a franchisor makes earnings claims, they are required to have in writing the facts upon which those estimates are based. A seller must tell you the number and percentage of owners that have actually met the claimed profit margins. Beware of broad and unsubstantiated claims.