Choosing the Right Franchise
Choosing the Right Franchise
There are certain things to consider before making this important decision :
1.Are there certain products which you would prefer to sell?
Determine your preferences and try to go for a franchise where whatever experience you have is at least, slightly relevant to its industry. An unpleasant scenario for your franchising business would be investing your time and effort into a business, only to find that you receive no joy from it. At the same time, selling this business would be difficult, if you were unable to make sufficient profits as a result of your boredom with it. Do you really want to see your business venture turn into a joyless task, where you simply aspire to pay off your franchise fee?
2.What’s the amount of money available for investment?
The amount of money available on hand for the investment and finance of a franchise is one of the most important factors you have to consider. Despite how much you may be attracted to a certain franchise, if you can’t muster up the funds necessary, then your choice is likely to backfire.
3.What other costs are to be expected?
Money spent on buying a franchise isn’t the end of your expenditure. Estimate how much money is required for other aspects usually involved in franchising, between promotion, insurance, training etc. Leave no room for surprise expenses.
4. How long has this franchise been in business?
Has this franchise company existed for a few years now, or is it a new business? Do they have a history of opening successful franchises and what are the demographics involved? How reputable is it?
5. How frequent do the team players change?
Just how stable has this company’s staff been? Have there been many changes in the faces of those in charge? Watch out for a history of lawsuits or even bankruptcy in the disclosure document.
6. Does this franchise have a history of success?
Take a look at the history of the franchise company’s franchisees. How many of them have found success and how many of these businesses have bitten the dust? Ask for the contact information of previous franchisees and be sure to get in touch with them and ask for their point of view, regarding their experience with the company.
7. If training is required, will it be available?
Inquire about the availability of training and whether it constitutes a part of your franchise fee. What kind of help does this training include and what kind of instructional help is offered in the future?
8. What is the minimum distance allowed by the franchiser between your shop and another franchisee’s shop?
9. Should all your required supplies, tools, products etc. be purchased from the main franchise company?
If this is the case, make sure to accurately compare the prices of the franchise company with the retail prices of the same products. If the franchise company’s prices are higher, then it would be unreasonable to assume that working under these circumstances will turn in a good profit.
10. What ownership rights does the contract provide?
You have to make yourself aware of how far your ownership extends, exactly. You should be aware of what your choices are after the expiration of your contract. Will it be renewed by the company, if you want to continue? You also have to know if there is room for converting your business into an independent one, if you wish to in the future.
11. Make note of the legal aspect of things and how future disputes that may arise, will be handled. It is necessary to look at the fine print and understand the contract clauses involving arbitration, such as where the hearings are to be held.
12.How selective is the franchise company in choosing its franchisees?
Does this company have a history of choosing franchisees who only live up to certain criteria? Or does is it simply on the hunt for as many franchise fees as possible?
13.Is this company known for pressuring franchisees into signing contracts?
14. Do you find yourself wary of the people you’re doing business with or do you like them well enough?
15. Is the local market big enough to accommodate the products and services of the franchise and just how competitive is this market?
Choosing the Right Franchise - To learn more about this author, visit Sebastien Page's Website.
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After much thought and deliberation, you’ve finally decided to take the plunge into the world of franchise, as you truly believe that it is the way to a successful future. However, one crucial decision remains to be made. Which Franchise is the right one for you?
There are certain things to consider before making this important decision :
1.Are there certain products which you would prefer to sell?
Determine your preferences and try to go for a franchise where whatever experience you have is at least, slightly relevant to its industry. An unpleasant scenario for your franchising business would be investing your time and effort into a business, only to find that you receive no joy from it. At the same time, selling this business would be difficult, if you were unable to make sufficient profits as a result of your boredom with it. Do you really want to see your business venture turn into a joyless task, where you simply aspire to pay off your franchise fee?
2.What’s the amount of money available for investment?
The amount of money available on hand for the investment and finance of a franchise is one of the most important factors you have to consider. Despite how much you may be attracted to a certain franchise, if you can’t muster up the funds necessary, then your choice is likely to backfire.
3.What other costs are to be expected?
Money spent on buying a franchise isn’t the end of your expenditure. Estimate how much money is required for other aspects usually involved in franchising, between promotion, insurance, training etc. Leave no room for surprise expenses.
4. How long has this franchise been in business?
Has this franchise company existed for a few years now, or is it a new business? Do they have a history of opening successful franchises and what are the demographics involved? How reputable is it?
5. How frequent do the team players change?
Just how stable has this company’s staff been? Have there been many changes in the faces of those in charge? Watch out for a history of lawsuits or even bankruptcy in the disclosure document.
6. Does this franchise have a history of success?
Take a look at the history of the franchise company’s franchisees. How many of them have found success and how many of these businesses have bitten the dust? Ask for the contact information of previous franchisees and be sure to get in touch with them and ask for their point of view, regarding their experience with the company.
7. If training is required, will it be available?
Inquire about the availability of training and whether it constitutes a part of your franchise fee. What kind of help does this training include and what kind of instructional help is offered in the future?
8. What is the minimum distance allowed by the franchiser between your shop and another franchisee’s shop?
9. Should all your required supplies, tools, products etc. be purchased from the main franchise company?
If this is the case, make sure to accurately compare the prices of the franchise company with the retail prices of the same products. If the franchise company’s prices are higher, then it would be unreasonable to assume that working under these circumstances will turn in a good profit.
10. What ownership rights does the contract provide?
You have to make yourself aware of how far your ownership extends, exactly. You should be aware of what your choices are after the expiration of your contract. Will it be renewed by the company, if you want to continue? You also have to know if there is room for converting your business into an independent one, if you wish to in the future.
11. Make note of the legal aspect of things and how future disputes that may arise, will be handled. It is necessary to look at the fine print and understand the contract clauses involving arbitration, such as where the hearings are to be held.
12.How selective is the franchise company in choosing its franchisees?
Does this company have a history of choosing franchisees who only live up to certain criteria? Or does is it simply on the hunt for as many franchise fees as possible?
13.Is this company known for pressuring franchisees into signing contracts?
14. Do you find yourself wary of the people you’re doing business with or do you like them well enough?
15. Is the local market big enough to accommodate the products and services of the franchise and just how competitive is this market?
Choosing the Right Franchise - To learn more about this author, visit Sebastien Page's Website.
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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 |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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Jay Kubassek(Jay's Full Bio: EvanCarmichael.com/jaykubassek) In five years, Canadian-born entrepreneur Jay Kubassek went from selling mufflers at a Midas franchise to revolutionizing Internet marketing with the 2004 launch of CarbonCopyPRO, a online marketing education company, now worth over $20 million with customers in over 160 countries.
As an independent film producer, his upstart film fund Aliquot Films is currently producing a films with Spike Lee and Abel Fererra (starring Ethan Hawke and Dennis Hopper.)
Jay's entrepreneurial spirit is irrepressible. He’s the owner of five companies, a professional speaker and trainer, international real estate developer/investor, extreme sport enthusiast and emerging philanthropist. Jay resides in NYC with his wife Jamie, son Milo and dog Cooper. Visit Jay's official website: www.JayKubassek.com - Visit Jay Kubassek's Website |
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