Are You Ready For Franchising?
Are You Ready For Franchising?
The No. 1 question a person should ask themselves before going the franchise route is what will they get for their money?
Depending on the size of the franchise fee and royalties, which vary greatly among franchises, a potential franchisee should be concerned about a wide range of things including: the area covered by the franchise agreement, amount of training and materials provided for managers and employees, help with advertising, equipment packages and financing options. Of all of those, financing options, can speak volumes about the company.
One should always be skeptical of franchisors who won't finance at least part of the business. It doesn't show much faith in the business or the potential franchisee. But the franchisor also wants a potential franchisee to show faith in the business and persistence in their dream of owning a business. That's part of the reason behind making an anxious entrepreneur jump through a hundred hoops, sometimes before a company will even consider a potential franchisee.
Keep the following steps in mind when you consider becoming a franchisee:
SELF-EVALUATION. Ask yourself whether you are willing to make the sacrifices of long hours, hard work and financial uncertainty needed to make a franchise work? Do you enjoy working with people? Are you a good supervisor? Or are you simply attracted by the idea of making easy money. Good franchisors will make sure you answer these questions about yourself.
INVESTIGATE THE FRANCHISE. Do what most people do when making a major purchase such as a home or car: compare. Talk to one franchisor then talk to a similar franchisor. Talk with the franchisees from the company or similar category. The Federal Trade Commission will be helpful in obtaining information on where and how to start. Their Franchise Opportunities Handbook, from which some of this information was taken, is a good place to start
KNOW THE MARKET. Drive the streets and talk to the people where you plan to locate your franchise. Look and listen for what products and services are needed and check out the competition. How the area is growing and what may be needed in the future?
READ CAREFULLY AND STUDY DISCLOSURE STATEMENTS. The franchisor is required by law to provide to the prospective franchisee an offering circular or prospectus. If they do not, then ask for one. These statements contain information ranging from a description of the business to lawsuits, previous bankruptcies, financing assistance, restriction on the goods or services franchisees can sell and training programs. After studying the statement, contact a few of the franchisees that will be listed.
OBTAIN PROFESSIONAL ADVICE. While your banker will have some helpful advice about putting together a solid business plan and other financial options, reputable legal counsel and accountants will help you evaluate your risk and opportunities.
Are You Ready For Franchising - To learn more about this author, visit Bob Macek's Website.
Like this article? Share it with your friends
A franchise is supposed to do one thing and one thing only and that is to reduce your risk of failure.
The No. 1 question a person should ask themselves before going the franchise route is what will they get for their money?
Depending on the size of the franchise fee and royalties, which vary greatly among franchises, a potential franchisee should be concerned about a wide range of things including: the area covered by the franchise agreement, amount of training and materials provided for managers and employees, help with advertising, equipment packages and financing options. Of all of those, financing options, can speak volumes about the company.
One should always be skeptical of franchisors who won't finance at least part of the business. It doesn't show much faith in the business or the potential franchisee. But the franchisor also wants a potential franchisee to show faith in the business and persistence in their dream of owning a business. That's part of the reason behind making an anxious entrepreneur jump through a hundred hoops, sometimes before a company will even consider a potential franchisee.
Keep the following steps in mind when you consider becoming a franchisee:
SELF-EVALUATION. Ask yourself whether you are willing to make the sacrifices of long hours, hard work and financial uncertainty needed to make a franchise work? Do you enjoy working with people? Are you a good supervisor? Or are you simply attracted by the idea of making easy money. Good franchisors will make sure you answer these questions about yourself.
INVESTIGATE THE FRANCHISE. Do what most people do when making a major purchase such as a home or car: compare. Talk to one franchisor then talk to a similar franchisor. Talk with the franchisees from the company or similar category. The Federal Trade Commission will be helpful in obtaining information on where and how to start. Their Franchise Opportunities Handbook, from which some of this information was taken, is a good place to start
KNOW THE MARKET. Drive the streets and talk to the people where you plan to locate your franchise. Look and listen for what products and services are needed and check out the competition. How the area is growing and what may be needed in the future?
READ CAREFULLY AND STUDY DISCLOSURE STATEMENTS. The franchisor is required by law to provide to the prospective franchisee an offering circular or prospectus. If they do not, then ask for one. These statements contain information ranging from a description of the business to lawsuits, previous bankruptcies, financing assistance, restriction on the goods or services franchisees can sell and training programs. After studying the statement, contact a few of the franchisees that will be listed.
OBTAIN PROFESSIONAL ADVICE. While your banker will have some helpful advice about putting together a solid business plan and other financial options, reputable legal counsel and accountants will help you evaluate your risk and opportunities.
Are You Ready For Franchising - To learn more about this author, visit Bob Macek's Website.
Like this article? Share it with your friends
 | |
 |
No article feedback found. |
| |
Leave Your Feedback |
 | |
| |||
John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
|||
|
To learn more about the Evan Elite Author Program please contact us. | |||
 | |
|  |
Subscribe to Bob's articles
 | |
|
|  |
 | |
|
| |
 | |||||||
|
 | ||
 |
||
 |
||
 |
||
|
| ||
 |
| Have you written articles that would be of value to entrepreneurs? Become an expert on our site by publishing them! Expose yourself to a wide audience, drive more traffic to your website and get more sales! Click Here for details. |
|
|
 |
| Modeling the Masters: Learn the true secrets behind Walt Disney's business success factors & grow your company! Video produced by Phanta Media |
|
|
 |
"Learn straight from Evan how you can Make a Full Time Income (And More) from a Website"
Click Here To Learn More |
|
|
|
|
Get advice & tips from famous business owners, new articles by entrepreneur experts, my latest website updates, & special sneak peaks at what's to come!
|
|
|
 Fortune Small Business EQ Coaching Report Instant Scripts Performance Improvement Plan Dazzling Presentaion Steps |
|
 | ||
 |
Top 50 Blogs For Startups
Top Blogs To Watch In 2008 | |
 |
Top 50 Debt Blogs
Learn To Get Out Of Debt | |
| ||
 | ||||
| ||||
|
| ||||
| ||||
|
|
|
|
|
||||||||||||
|
Email us your ideas on how to make our website more valuable! Thank you Sharon from Toronto Salsa Lessons / Classes for your suggestions to make the newsletter look like the website and profile younger entrepreneurs like Jennifer Lopez and Sean Combs!
|
|
|
| ||||||||||
|
| ||||||||||
|
|
||||||||||