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Questions to Ask Before Buying a Franchise

Casa de Corazón Franchise FAQs

If you are thinking about buying a franchise with Casa de Corazón®, we invite you to look through these questions and answers to learn more about our opportunities as well as any requirements needed. If you find that you have more questions, feel free to reach out so we can help walk you through the process.

What Are the Advantages of Owning a Casa De Corazón Franchise?

Starting a new franchise business gives you the independence of entrepreneurship and control of your path. However, sometimes it feels like you’re going at it alone. The beauty of a franchise is that you get all the independence but with significant support.

  • The product or service is well-established and may already be widely recognized.
  • Instead of spending years building your customer base, a franchise brings you an audience that may already be eager to spend money with you.
  • Franchises offer support long before the business opens. The best franchisors help their franchisees choose a site, obtain financing, learn how to run the company, and celebrate its opening.
  • A franchise is more likely to succeed than an independent business because the product or service is already proven.
What Should I Consider Before Buying a Franchise?

When you’re starting a business of any kind, you want to research the industry carefully. Opening a franchise is no different. Here are a few questions about franchises you’ll want to investigate thoroughly.

  • Do you need experience in that industry? For example, Casa de Corazón doesn’t require experience in child care for our franchise owners.
  • What is the time commitment required? If you have professional and business demands on your time, you want to ensure that you give adequate time to your new franchise effort.
  • Does the franchisor have a history of success and financial stability? Look for a pattern of steady growth and franchisees operating stably after some time.
  • What kind of experience does the franchise management team have? The representatives should have broad business experience in the industry and outside of it.
  • What is the upfront cost to join the franchise, and how will you finance it if you don’t have the cash available? Expenses can include real estate, equipment, franchise fees, and miscellaneous expenses.
  • What are the ongoing expenses of being part of the franchise? Ask questions about annual franchise fees and what kind of support and materials you receive each year.
  • What are you required to buy from the franchisor? Where do you get those goods, and how do they get to you? Most franchisors require you to purchase specific supplies or services directly from them.
  • What are the conditions under which the franchise relationship can terminate or renew? One crucial question to ask is how many franchisors leave the system each year.
What Legal Information Should I Review When Considering a Franchise?

Franchise law can be complex, but it is critical that the franchisor and franchisee clearly understand the relationship to be successful. Franchisees should consult an attorney with experience in dealing with franchise law to understand the risks and benefits of the arrangements fully. Two important legal documents to review carefully are the Franchise Disclosure Document, or FDD for short, and the Franchise Agreement. Together they govern the relationship between the franchisor and franchisee.

Do I Need to Be Bilingual to Own a Casa de Corazón?

As an owner of a Casa de Corazón franchise, you do not need to be bilingual, but you will need to ensure all employees are bilingual or Spanish-speaking. Your staff being fluent in Spanish is a requirement of Casa de Corazón.

What Is the Process to Becoming a Casa de Corazón Franchise Owner?

Your first step is to submit the Inquiry Form.

Once we have received that from you, we will contact you to have an initial discussion and determine if you meet the primary qualifications we seek, as well as provide you with an overview of the opportunity.

Next, we will send you the Franchise Disclosure Document to review with your attorney. We will also send you an application to complete.

If we are moving forward, it is time to see Casa in person! We will invite you to a Casa de Corazón Discovery Day at our corporate facility.

The final step is signing the Franchise Agreement — then we can get started!

What Is the Term of My Franchise Agreement?

The initial term is for a period of 10 years, after which you can renew in 10-year increments pursuant to the Franchise Agreement and lease availability.

Will My Territory Be Protected?

At the time we approve your site for your center, we will also grant you a territory. We refer to this territory as the “Designated Territory” and we describe it in the Rider to your Franchise Agreement. Your designated territory will generally encompass an area surrounding your center that is the lesser of 3 miles, or an area encompassing 10,000 households.

The exact size of your territory will depend upon the various factors including whether your center is located in a metropolitan area, the size of your center, and the number of students you are licensed to care for. We will allow you to relocate your site so long as it continues to be in your market, is not within the designated territory of another one of our franchise owners, and meets our other then-current requirements for a site.

Does Casa de Corazón Help With Site Selection?

Yes! We will work with you in your search for an appropriate site with our national real estate team. We may engage a local broker who is familiar with the market. Our team will also do a complete demographic and market analysis.

Our vendor will submit Letters of Intent (LOIs) and negotiate the main business deal points. The last step is to have you and your attorney finalize the lease with the landlord.

What Is the Total Investment for a Casa de Corazón?

Investments vary depending on the size, location, and market of your location. Whether your location’s building is already completed or requires construction is also factored into the investment.

We estimate that your initial investment will be between $767,800 – $4,058,100 including real estate improvements. These amounts include the franchise fee.

What Is the Royalty Fee and Advertising Fee for a Casa de Corazón?

The royalty fee is 7% of gross sales and the advertising fee is 2% of gross sales.

What Does a Typical Day Look Like?

Learning about the daily duties and goals of a franchisee can help you get a clearer picture of what your workload will be. It’s important to discern what challenges you might face as a franchise owner, and luckily for you, franchisors are required to disclose the contact information for past and current franchisees. These people will be your ultimate resource in determining whether or not a franchise opportunity will be right for you.

Speaking with both past and present franchisees can give you an honest perspective on how the franchise system operates and the subsequent pros and cons.

Let’s build brighter futures together!

Join the fast-growing field of Early Childhood Education. Fill out our short form and a Franchise Support Specialist will reach out!

When you are ready to make the decision, give us a call at (612) 790-9673. We look forward to working with you to get started making lives & communities better.

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Disclaimer: Note: The information provided in this Website is not intended as an offer to sell, or the solicitation of an offer to buy a franchise. An offer or solicitation can only be made by a franchise disclosure document. This communication is not directed to residents of any jurisdiction that requires registration of a franchise prior to offering and selling a franchise in such jurisdiction. No franchises will be sold to any resident of any such jurisdiction until the offering has been registered and declared effective by such jurisdiction and the required offering circular has been delivered to the prospective franchise owner in compliance with applicable law. At the present time, we have elected not to register in any of the following states, and therefore, do not and cannot solicit franchise sales in or direct offers to these states: [California, Hawaii, Illinois, Indiana, Kentucky, Maryland, Michigan, Nebraska, New York, North Dakota, Rhode Island, South Dakota, Utah, Virginia, and Washington]