Franchises
 

FRANCHISE Frequently Asked Questions

What qualifications do I require?

You will need:
  • A passion for the real estate business
  • A general understanding of your local real estate market
  • Exceptional communication, interpersonal and organizational skills
  • An understanding that buying a Franchise means there are rules and systems to follow and you agree to follow them
  • A willingness to be an active member of a non-profit or charitable organization in your community
  • A committed belief that your success should extend into your community


How do I know if I will become a successful Franchisee?

CHSI is dedicated to choosing the right people as franchise owners. Successful owners understand the importance of building long-term customer relationships and are committed to total customer satisfaction. A successful franchisee is self-motivated, goal-oriented and able to manage time and people. While we cannot guarantee your success as it is largely dependant on your skills, efforts and territory, we can guarantee that we are committed to doing our best to create success for you at all levels!

How much is the initial Franchise Fee?

The Initial Franchise Fee is $150,000 plus applicable taxes. This fee includes the cost of your initial training, opening marketing campaign, and the rights to use the (CHSI) branding and operate the system.

How much is the Total Initial Investment?

In addition to the Initial Franchise Fee there are other costs common to the start-up of any business such as rental or utility deposits, office, equipment and furniture, permits and professional fees. These costs are in the range of approximately $10,000 - $20,000 depending on your area. The total investment for a CHSI Franchise including the Initial Franchise Fee ranges from $200,000 - $450,000, which also provides the Franchisee with some (initial deposit) capital required to purchase properties.

Do you provide financing for the initial Franchise Fee?

No, we do not assist with the financing of the Initial Investment. There are franchise and business financing options available in most areas.

If I am expected to purchase properties on a regular basis, how do I qualify for an unlimited amount of mortgages?

All CHSI Franchisees have direct access to our pool of investment capital. CHSI incorporated a separate investment division in order to provide its Franchisees with the benefit of not having to qualify at the bank. This has essentially eliminated the age old problem that most real estate investors are faced with. This pool of funds is only accessible to CHSI Franchisees.

How do I make money with this Franchise System?

With our Lease to Own System there are multiple streams of (cash flow) income. The cash flow is generated in the form of superior monthly lease payments and initial down payments with predictable back-end profits. During Franchise training we will also teach you many creative buying strategies - How to make money the day you purchase your properties and how to adjust your buying strategies with the ever changing real estate market.

What would my time commitment to this Franchise System be?

Most of our Franchisees are committed to fulltime; however, it ultimately depends on the individual and how many properties you choose to purchase over the course of the year. Unlike some business opportunities where you are "buying yourself a job" and "chaining yourself to a storefront", the CHSI business model will provide you with flexibility, as all "initial" Lease to Own inquiries are fielded and filtered through our National Program Information Centre that is based in Edmonton. All inquiries come in through our website or our 1-866 (toll-free) telephone number.

Why is your Franchise fee higher than the average Franchise system?

Our Franchise system is very unique and unlike most "traditional" Franchise systems…you are not "buying yourself a job". In comparison, you may be able to purchase an alternate Franchise with a $25K (or less) Franchise fee, but you may also be required to have additional working capital in order to start-up your Franchise system. Some Franchise opportunities require upward of one million dollars in unencumbered cash. With our system you will not require a huge amount of additional capital because our system will provide you with the opportunity to access the necessary capital in order to fund your real estate purchases.

The "Lease to Own" and "Rent to Own" concept has been around for some time, so why would I invest in a CHSI Franchise when I could "do my own thing"?

We offer a credible and proven "Lease to Own" Real Estate business model that attracts quality Lease to Own Tenants. The advantages of purchasing a CHSI Franchise would include a proven and effective system, National Branding and an aggressive National Marketing Campaign which includes, but is not limited to, the following: Radio, Buses and Billboards, to name just a few. The other key benefit associated with this opportunity is the ability to access our large pool of Investment Capital to fund your Real Estate transactions. In other words, you will not have to deal with the Banks!

What is included with this Franchise system?

Prior to receiving extensive training at our corporate office in Edmonton, you will receive a CHSI Canada Operations Manual. This Manual contains all of the necessary and detailed Operating Standards, forms, templates and samples to operate a successful operation. This Manual has been developed over an extensive period of time and, as such, is considered an invaluable tool. In essence, "we have been there and done that" and as a result, our proven system will provide you with the opportunity to eliminate the huge learning curve and the time and dollars that are typically required to start-up any business, let alone a complex and unique business of this nature. By purchasing a CHSI Franchise system, you will also personally benefit from the (real estate and business) mentorship that will be provided by the Creative Team at CHSI Canada.

All working templates are accessible to you on our FTP (file transfer protocol) site that is housed on our secure server. In addition, you will have direct access to our CRM (customer relations management) database. We use this database to track all incoming client inquiries, as well as all information associated with the acquisition and leasing of your properties. The CRM is also utilized to store all pertinent (legal) documentation in an "off site" format. This provides our Franchisees with added security and back-up in the event of a major business interruption.

How long is the Franchise Agreement for?

The Initial Term is three (3) years, with a five (5) year renewal option as long as you meet certain conditions.

What kind of (specialized) training do you provide?

We provide you with all the training you will need to successfully operate your franchise. The initial mandatory training program will take place in Edmonton, Alberta, or at another location that we choose. The duration is normally five days but may be more or less. This cost of initial training is included in the Initial Fee for up to two (2) partners or three (3) shareholders. The tuition for the initial training and the written course materials will be borne by us. The tuition for the initial training and the course written materials for any additional persons or any training subsequent to the initial training course (and requisite materials and/or convention fees) will be paid by you. The training program is conducted after the signing of the Franchise Agreement and payment of the Initial Franchise Fee, and before the business can open for operation. Satisfactory completion of the initial training program is mandatory.

Would I require a lot of staff to operate this Franchise system?

No you would not, but as your business expands you may wish to employ some additional help in order to grow your business and free up your time to do the type of things that you enjoy most. This particular Franchise opportunity is not just about superior cash flow; it is also about providing you and your family with a "quality" lifestyle.
Can I operate this Franchise system from my home?

No. You are required to operate the business from a "stand alone" office to enhance your professionalism and credibility of the product and services that we offer. Just call any "Lease to Own" or "Rent to Own" sign that you come across in your city or town. We can almost guarantee that you will NOT be impressed with the reception and the process delivery. That is why we have and continue to promote…"We have NO relative organized competition". Your office does not have to be large. Typically 400 square feet is all that you require. It does not require exposure to a street or road, as you will have very little (if any) "walk-in" business. You are not required to maintain regular or restrictive office hours. This is another great benefit of owning a CHSI Franchise system.

What are the ongoing financial commitments?

The ongoing financial commitments are as follows:
Marketing Fee: This fee is currently $1,000 per month. The Franchisee is not required to pay this for the first three (3) months of the Franchise term.
Administration Fee: This fee is currently $500 per month. The Franchisee is not required to pay this for the first three (3) months of the Franchise term.
Database Fee: This fee is for providing you with access to our database, maintaining and administering the equipment and software. There is an initial set-up fee that is currently $1,500, and a current monthly administration fee of $100.00. The Franchisee is not required to pay the administration fee for the first three (3) months of the Franchise term.
Franchisor’s Portion of Option Payments and Option Sale Royalties: This is our version of Royalties and is payable in accordance with the terms and conditions of the Franchise Agreement. We make money only when you do! The royalty fees are based on 14.5% of the net profit generated from the Purchase and Sale of a property.
Insurance: You must procure and maintain commercial general liability insurance.
Additional or Advanced Training: This will be required if Franchisor determines that additional training is needed or if the Franchisee requests additional training. Franchisor may also prescribe updated training sessions from time to time throughout the term. These training sessions may be in another City and you may be required to travel to attend. The cost of your travel and accommodations are solely at your expense. In certain circumstances a reasonable training fee may apply.

Will I be granted an exclusive Territory?

Yes, you will be granted a defined territory and it will depend on your specific location of choice.

How do I know this system will work in my City or Town?

Statistics show there is a large percentage of people who rent. Some of these people are denied the opportunity of home ownership and are only "steps" away from being able to qualify for a "conventional" mortgage, but no one (including the banks) has taken the time to provide them with the credit counselling they require.

Do I have to be a realtor, or do I require any type of license to operate this system?

No, but we recommend that you develop a strong affiliation with a good realtor that works in your geographic area. The realtor will be considered as an extension and valuable member of your team.

Can I sell my Franchise system?

Yes, under certain terms and conditions you may sell your franchise at any time; however, the new prospect must be approved.

What kind of homework can I do on the Franchisor?

A commercial credit report is a report that may include information on the franchisor's business background, banking information, credit history and trade references. Such reports may be obtained from private credit reporting companies and may provide information useful in making your investment decision. As well, you are strongly advised to seek the advice of an attorney who specializes in franchising and an accountant knowledgeable in real estate and small business, to assist you before making any purchase decision.

 

Changing People’s Lives, One House at a Time!®