Franchise Business Opportunities, Buying a Franchise
Buying a franchise is a good way to be the part of a reputed brand in the market today, thus you will also be getting the same benefit same as the reputed company. There are various points to be considered before one should decide to buy a franchise.
The main thing is to get support from the family, every member in your family should accept your decision for buying a franchise, they should give support to all your activities. They should be able to run the franchise business in your absence. The second thing is to find your strength and weakness, so that you will able set your mind in all sort of situation while running the franchise. You should select the franchise according to your skills, so that it wont be a loss. Select the franchise according to your taste as well as the ability to afford the franchise business opportunities.
Then your franchise must be lawful, it should follow the rules and regulations imposed by the law. Before starting a franchise you should do the market research, which kind of franchise a withstand the particular region. For example various franchise business opportunities are available in all the countries, but some franchises will be success in one country and the same may be a failure in some other country. So it depends on market of that particular product in that country.
Select a franchise that is recognized. So that you will be able get good support. There should be legal companion with you, so that you will be able to sort out various issues easily. The next thing is that you must be able to promotion work for your franchise, joint as well as alone. You must also get good support from your friends also.
These are the various thing to be considered before buying a franchise.
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Buying A Franchise Versus Starting A Business
Author: Raymond Lawrence
Starting a business can be an exceedingly rewarding endeavor. From its inception you have complete authority on all decisions big and small - something as imperative as planning a restaurant menu, for example, to choosing what color and style of blinds to hang in the windows, you control everything.
Additionally, for those lacking the start-up capital to purchase or rent a location, you can start a business from home with little more than a computer with Internet access.
As attractive as this autonomy seems, however, starting a business from scratch is not without pitfalls.
For instance, there are high failure rates for new businesses. It takes time and effort to develop your business plan, secure financing, acquire the necessary licenses and get a clientele base. Indeed, it is wise for new business owners to have six months to one year of income set aside to subsist on while the business gets its footing. And, unless you have a wholly unique business idea, you will likely find yourself in competition with franchise businesses that enjoy vast brand awareness and customer loyalty.
This brand awareness is one of the major pros of buying a franchise business. You will be working within a proven system and enjoy instant brand awareness and credibility.
Additionally, a network of support is available to franchisees. This includes technical and managerial support from individuals who are knowledgeable about your specific business as well as the benefit of shared marketing.
And, if another franchisee in your area airs a commercial or sponsors an event, it stands to reason that your franchise location would share in the customers purchased by your neighbor's advertising dollars.
All of these facts add up to a quicker return on your investment because your franchise business is recognized from the moment you open its doors for the first time. Also, should you find that you are enjoying great success with your franchise business; expansion is far easier with franchises than with a small business.
Finally, if it's the food, hospitality or retail industry in which you're interested, franchise businesses have a much greater success rate in all of these areas.
Despite all of these redeeming qualities, a new business owner should remember that a franchise business is not a guarantee for success, and the start-up can be quite costly. A franchise business requires the same initial investment as a new business where location, supplies, inventory and employees are concerned, but it has the added cost of a franchise fee which varies widely but can be as much as several hundred thousand dollars.
Franchise Red Flags
Entrepreneur.com lists five red flags that should alert a new business owner to a potentially poor franchise choice:
One is the franchise's litigation history, which must be made available to prospective franchisees in the Uniform Franchise Offering Circular, or UFOC. A new business owner should look for how many cases the company has been involved in with franchisees. Anything greater than one or two cases per hundred franchisees is cause for concern.
Second, you'll want to examine the turnover of units in the company, also available in the UFOC. How many franchisees have left the company and why? Was it due to failure or the sale of a successful unit to a new owner? The answer to this question can help determine-at least partially-how successful you might expect your unit to become.
Another factor that should disquiet a prospective franchisee is, after sincere research, an inability to come up with any substantial numbers concerning things like sales and profits. If it seems that this issue is skirted around, another franchise may be a better option.
Additionally, before buying a franchise business, you should ask around about the relative happiness of other franchisees. Talk to other franchise owners. Are they happy with the support provided to them by the company? Are they pleased with the success of their own units? A preponderance of unhappy franchisees suggests that you may be unhappy in this franchise as well.
Finally, although it seems simple enough, a brief look into whether your cultural and moral values mesh with those of the franchise might be easily overlooked. Is the franchise run by individuals whom you deem to be honest and that share your ethical guidelines? If not, it may be a difficult system in which to work.
Top Franchises of 2007
The Franchise 500�� is a list compiled by Entrepreneur.com using the same criteria to judge each company, no matter what the size. These factors are "objective and quantifiable" and include, but are not limited to, the company's financial strength and stability and the growth rate and size of a company.
Entrepreneur.com examines the start-up costs for each franchise, the length of time the company has been franchising, as well as some of the factors on their red flag list, particularly litigation and turn-over rates. They find out whether the company provides financing and use an independent CPA to audit its financial data. They insert all this data into an exclusive formula and assign each company a cumulative score. Then, the companies are simply ranked based on those scores.
Just a few of the franchises you'll find on the Franchise 500�� are: UPS Store/The Mail Boxes, Etc., Liberty Tax Service, Super Cuts, Two Men and a Truck, Golds Gym, Arby's, Microtel, Beef O'Brady's and Chem-Dry Carpet, Drapery and Upholstery Cleaning.
While the Franchise 500�� can be a valuable resource for someone considering buying a franchise, Entrepreneur.com does not evaluate subjective criteria, and these areas-such as franchisee satisfaction-will need to be researched independently.
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What Makes A Franchise Successful?
Author: Diarmuid Kieran
Both franchisers and franchisees need to have a number of aspects in place if they are to achieve their goals of business success.
Companies looking to branch out into franchising must ensure that they have a strong team in place with some of them having had experience in the franchising industry.
This will enable the franchiser to be able to structure and market itself in a way to quickly attract franchisees to the business.
As many potential franchisees carry out research of the company, it is essential for franchisers to have a secure financial base and a record of spending money to help develop parts of the business that need improving.
Substantial funds are required to provide the training programmes, support systems and in some cases much of the stock that franchisees need.
Not only will this investment make it more likely that the best people wanting to become franchisees will choose to work for the company, it will help them to make a good job of their own franchise.
Once in operation, the reputation of the franchiser will be vital for it being able to continue to attract good franchisees.
It should be in contact with franchisees at regular intervals, ideally through a structured franchisee advisory committee, to ensure any problems are dealt with quickly and that the business structure is being properly carried out.
In addition, there should be regional and national meetings so that franchisees can network with each other and any new franchise developments can be explained to one large group, instead of having to do it individually.
The franchiser must ensure that it complies with all regulations, in particular concerning the sale of a franchise to another person, as departing franchisees should know exactly what they can and cannot do and new franchisees should be aware of everything in the franchise agreement.
If all this is in place, then franchisees will have a great platform to succeed. However, there are no guarantees and they must make sure they are able to carry out all necessary duties.
They must also be in contact with the franchiser on a regular basis to discuss the franchise's development and problem issues.
The franchise costs must be constantly checked and administration needs to be up-to-date so that franchisees know how much extra stock and staff they can handle at a certain time.
Similarly, as franchisees are in charge, they need to be responsible for having a good daily structure in place to ensure time is not wasted, which includes planning ahead for new developments and seasonal factors.
They also need to be able to market the business effectively, through local publications, flyers and talking to people face-to-face, with the results used effectively to change things in order to attract more customers.
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