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Buy A Franchise

Written by: Cynthia Gleeson

Article Overview: Before you buy a franchise, you need to be clear about who you are and what you want to get out of such a venture. Unlike popular belief, running a franchise is not the easy way out of starting from scratch. It takes just as much work to operate successfully as does your own startup. So, before you find yourself head deep in a new business, you best be sure it is the right move for you.

Buy A Franchise

Before you buy a franchise, you need to be clear about who you are and what you want to get out of such a venture. Unlike popular belief, running a franchise is not the easy way out of starting from scratch. It takes just as much work to operate successfully as does your own startup. So, before you find yourself head deep in a new business, you best be sure it is the right move for you.

First of all, consider what type of business gets you really excited and passionate about. If you had all the money in the world to start up your own business, what would you do? You might think that McDonald’s is a fairly secure franchise to buy into, but if the idea of selling hamburgers doesn’t get your juices flowing, it might be best to opt for something else.

Second of all, once you’ve determined the industry that you want to venture into, try and think about what kind of operation you want to run. Do you want to deal directly with hoards of customers? Or do you want to operate in a more business to business fashion, out of the reach of customers?

Third of all, whether you want to interact with customers or companies, what kind of environment do you see that happening in? If the smell of fried meat makes you sick to your stomach, again, McDonald’s is probably not your best bet. Think about whether you like the smell of oil – the Jiffy Lube franchise is showing promising signs – or if you’re happy most working inside the confines of an office. Even still, do you need to work from home to look after the children? Should it be a flexible, part-time opportunity instead of something that might consume you day and night, seven days a week? Environment is a key factor to think about before you buy a franchise.

Once you’ve figured out your dream venture, the next step is to try and answer that all important question: how are you going to finance this business? Do you have any investments you can cash in on? Can you take out a loan from the bank? How about from the bank that is your family? Chances are you will need whatever financial resources you can draw upon at all.

What is important to remember in this process is to do your homework. Never take anything at face value without doing your own research. And, never take the first opportunity that gets you excited; if it sounds too good to be true, it probably is. Take your time and evaluate all the options. Don’t commit unless you’re completely satisfied with your options; you won’t be able to get out of a bad agreement too easily.

When you decide to buy a franchise, you should think of it as buying a friend for life. There will be ups and downs, but hopefully, if you have chosen wisely, it will all be worthwhile.

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Re: Enticing Franchises - Top 9 List - All Franchise listed above are in millions of dollars. Do you have the list of Franchise in thousands
Re: Info for would be franchisers... - [quote="Sebastien":1d29sdv1]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to. I just want to mention that all these magazines are NOT franchisee oriented. I mean these magazines are for franchise professionals. If you're looking to buy a franchise, you won't find much information in there. To answer your question, getting published in Franchise Times was fairly easy. I don't want to brag too much but I think I am known in the franchise industry. I was the marketing guy at Franchise.com for a few years before joining my new company, the World Franchising Network. So people know me and I have a very good relationship with Nancy Weingartner, the Managing Editor at Franchise Times. I was talking with her at the last Franchise Expo South in Miami and she mentioned she'd like me to be profiled. I was like "ok, sure!". I like this franchise executive profile thing in Franchise Times as it is rarely BS. People are usually really natural in there.[/quote:1d29sdv1] Thanks for the follow up Sebastien! And I can't say that I'm surprised that networking with the right people and managing your relationships with them properly are the keys to being published. I guess the old adage holds true of "it's not who you know, but who knows you" that's important.
how much for a franchise fee? - Dear Colleague There is no easy answer to this question. Things to consider: [list=] The sizeof the Franchise Clent base Expected Turnover Intellectual Property costs (recoup) Number of Franchises Number of employees Original Set up costs Franchise admin costs An example: A franchise that I was involved in setting was to a simple "lawn mowing/home repair" franchise. The Franchise included national/local advertising - preparation of client lists - general admin - central accounting etc The Franchise involved 300-500 clients - and an annual turnover of about $300,000 . The annual franchise fee was $30,000. Hope that this gives you some idea Take care Ian[/list]
Re: Franchise Surveys - Another good tool to researching a franchise is to speak with their existing franchisees. This contact information is included in most Franchise Disclosure Documents. In order to get a Franchise Disclosure Document or FDD as it is often referred to, you will have to complete a basic franchise application. The franchisor will then usually provide you with the FDD at that time. Included in that book of information is a list of the existing franchisees, the contract, the investment information etc... This information is required by Federal Law to be disclosed to your prior to making a purchase. So be sure to do your research and start with the Franchise Documents to get the initial information.
Re: Info for would be franchisers... - [quote="Sebastien":2gam0klq][quote="BuzzAroundBooks":2gam0klq]Like Franchise Times, Franchise Update is a very practical magazine. There is no blah blah, just straight facts that anyone in the franchise community can relate to.[/quote:2gam0klq][/quote:2gam0klq] That is really what I look for in any industry publication. We lead busy lives and when people fill their magazines with fluff, not only does it benefit no one, but it makes us truly appreciate those that don't. Thanks!


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