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.
Like this article? Share it with your friends
 |
Related Articles |
|
 About 60% of all franchise opportunities have less than 50 units.
|
| |
There are over 2500 franchise opportunities operating in the U.S., some of these franchise opportunities are larger systems but most of them are smaller emerging systems.
About 60% of all franchise opportunities...
|
|
Do You Need Experience to Own a Franchise?
|
| |
Many people think that because they don’t have a formal education or do not have a lot of business experience, then their options for business ownership are very limited. However, that isn’t necessarily the case wit...
|
|
Translate Your Current Job Skills to Franchise Ownership
|
| |
Some kind of job skill is needed to qualify as a franchisee. You can have marketing, sales, administrative and management expertise to find success in the franchise world.
|
|
Franchises Versus Licensed Business Opportunities
|
| |
When it comes to business there is a whole lot of lingo out there that can be confusing. One example is that of a franchise or a licensed business opportunity. Anyone looking for business opportunities must understa...
|
|
Finding a Franchise Online
|
| |
You want to own a franchise, but you don’t know which ones are available and which one would be right for you. The big question is: how do you find the perfect franchise opportunity to buy?
|
|
|
Cynthia Gleeson's
Complete
List Of
Franchises
Articles
|
|
If you enjoyed this article, get Cynthia Gleeson's Complete List of Franchises Articles For FREE!
|
|
|
|
