Tweet

Franchise Business Opportunities

Written by: Cynthia Gleeson

Article Overview: It sounds like a glorious life, doesn’t it? Everything is already set up for you, all you need to do is buy a franchise and let the rest work itself. Indeed, the promises of franchise business opportunities sometimes seem too be good to be true. And, in fact, they often are.

Franchise Business Opportunities

It sounds like a glorious life, doesn’t it? Everything is already set up for you, all you need to do is buy a franchise and let the rest work itself. Indeed, the promises of franchise business opportunities sometimes seem too be good to be true. And, in fact, they often are.

It is undoubtedly true that franchises can offer both the franchisor and the franchisee a rewarding business partnership that realizes much success. But, underneath much of the rosy claims made by the proponents of franchising is another reality. And, it is one you need to be aware of if you’re thinking about taking that step.

According to the CFA, there are over 76,000 franchises throughout Canada, which together generate more than $100 billion in annual revenues. Indeed, some surveys have claimed that 90 percent of franchises enjoy long term success. However, a recent study by a professor at the Wayne State University of Detroit, which was later published in the Wall Street Journal, revealed a different picture. There, the professor found that in fact there was a failure rate of almost 35 percent of franchises. Indeed, other surveys have pushed that number upwards to almost 70 percent.

Many franchise business opportunities can support what they promise, but before making any purchasing decisions, do your homework! Find out which claims are legit, and which are in fact too good to be true. To this end, the Better Business Bureau can be a great resource before you make any major decisions.

Fraudulent franchises have taken the risks involved with franchising to a whole new level. Don’t get into business with anyone demanding that you act immediately or who refuses to provide you with all of the financial information you need to make an informed decision. Make sure you know not only the names of the corporate officers, but that they also in fact exist. And, don’t fall for the get rich quick type of programs that promise to make you instantly rich in your spare time. Franchises, like any other businesses, require work, hard work, and more work to become and stay successful.

If after evaluating your prospective franchise you realize that it’s a legitimate operation, make sure you take the time to find the best site location for you to start setting up shop. It is said that the number one reason behind business failure is the location of that business. Don’t sign any agreements with your franchisor until you’ve selected the best possible site for the business and negotiated a great deal. If you can’t find what you’re looking for – wait! Don’t settle for a sub par site as it will only result in sub par sales.

One quick spin around the ‘net and you’ll realize that there is no shortage of franchise business opportunities to whet your appetite. But, don’t get caught up in one before you’ve evaluated its merits. Running a franchise is hard work, but it’s even harder if you don’t get started off on the right foot.

Related Articles
  About 60% of all franchise opportunities have less than 50 units.
  Why Use a Franchise Consultant?
  Do You Need Experience to Own a Franchise?
  Translate Your Current Job Skills to Franchise Ownership
  Singapore Food Franchise Snackz It Expands to three Locations

Article Tags:



Related Forum Posts
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]
Fed rate cuts . . . - So just what do the newest Fed rate cuts mean to Franchise and Business Opportunity investing? Is it immediately felt? What timeframe do you think, or rather, where are we in terms of new vs. existing business investment? A similar question can be composed for the economic stimulus checks - will they a have any effect if consumers spend a little $$
Re: Hello EvanCarmichaelers, and Thanks! - "Carmichaelers" ..nice.. Over at the Young Entrepreneurs I'm going to start calling my readers "DSilvelers" - I like the sound of that! Welcome on board theFranchiseMarket. Do you run a Franchise Business or are involved in Franchising in anyway?


Share this article with your friends. Fund someone's dream.

Leave a comment below or share on the left and you'll help support entrepreneurs in Africa through our partnership with Kiva. Over $50,000 raised and counting - Please keep sharing! Learn more.

Tweet

Newsletter

Get advice & tips from famous business
owners, new articles by entrepreneur
experts, my latest website updates, &
special sneak peaks at what's to come!

Name:
Email:

Popular Articles

Maximum Impact Restaurant Greening

How to choose your executive coach -1

Life is a Balancing Act!

Suggestions

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.