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11 Franchising Tips for 2011...

Guest post by: James Greig

Article Overview: Tips for Franchisee's wanting to buy a Franchise in 2011.

11 Franchising Tips for 2011...

1) Franchises have a higher likelihood of success than other business models-

Some studies show that franchises have a success rate of approximately 90% as compared to only about 15% for businesses that are started from the ground up. The exact accuracy of these statistics are constantly argued by those in the industry, however, it is only logical that a franchise will be more successful than a 'ground- up' business since there is already an established system in place that has worked well in the past and worked well for other franchisees.

2) The importance of a proven business model-

All Franchises have a business model in place designed for optimum productivity and sales. This means a business can be up and running immediately, and eliminates the lengthy time needed to develop the systems and processes, and as they are already in place (tried and tested) it also means you don't have to go through the normal challenges that often occur when setting them up for the first time.

3) Franchisee's find it easier to get financing-

Lenders will often finance the purchase of a franchise more readily than a ground-up business because franchises already have a proven track record of success. Successful franchises are viewed as less of a risk to banks in regards to defaulting on repayments (and if banks consider franchises to be less risky shouldn't you?). Some Franchisors even offer vendor financing to the right franchisee!

4) Franchisors Provide Marketing & Support-

The great thing about owning a franchise is that your in business for yourself but not by yourself. The majority of franchisors offer a huge amount of support, not only with the set up of your franchise, but with all your marketing and ongoing technical needs as well.

5) Buying a Strong Brand-

As a franchisee you are essentially purchasing the right to use the trade name, logo and intellectual property of the franchisor. This can be your strongest marketing tool if you choose a franchise with a well known or well trusted brand.

6) Investigate your Exclusive Territory-

Franchisors will only allow a certain amount of franchises to be open within a certain geographical region ( just check the individual franchise 'rules' and make sure you have a big enough/ busy enough region before you purchase). You will then be entitled to a certain area that no other franchisee can trade in!

7) Franchisee Comradeship-

One asspect of franchising that is not often spoken about is the comradeship between franchisees. This is a great benefit as franchisees can share ideas and offer support amoungst themselves without giving away sensitive information to any competitors to the brand. It becomes a powerful tool as franchisees 'share' the trials and errors, which means a reduction of costly mistakes for each individual franchisee.

8) Franchisors provide Real estate & Construction assistance-

The franchisor will select or help to select the perfect location/ piece of real estate for the franchisee which is a big help since the franchisor has experience with what works best for the franchise and often relationships with property managers. The franchisor will also help to construct an appropriate shop front and some fittings etc (often included in the franchise package).

9) Exploit Economies of scale-

Big savings can be made when working closely with the franchisor. This is done by pooling resources and getting the franchisor to 'buy in bulk' saving everyone 'a little bit here and a little bit there', which really adds up when you own a business!

10) As a Franchisee you are given a Training Program-

The training programs are one of the most important elements of a franchise package as it gives you the ability to use new technology, learn a new skill (if necessary), manage the financials and manage staff. The ability to do all of this at once is vital and is often the downfall of 'ground-up' businesses.

11) As a franchisee you have the flexibility to wake up in the morning and CHOOSE what to do that day!!!-

Being a franchisee gives you more freedom and flexibility so you can choose what you do with your days. This gives you a much better quality of life and all without the stress of starting a business from scratch!

Related Articles
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  I Want to Take My Business to the Next Level
  Newsworthy Trends in Franchising
  What is franchising? My personal definition!
  Franchising Is a Better Path to Success than Opening a StandAlone Business
  Fearing Franchise Losses
  Franchising Overview
  Franchising vs. Licensing
  Franchising can change the world
  FRANCHISING PERSPECTIVE
  Successful Franchisee Traits
  How To: Buy a Restaurant Franchise
  Financing Your Franchise Business
  ARE FRANCHISES CHANGING WITH THE TIMES?
  Franchising Can Be a Legal Money Machine
  Getting the Best Out of Your Franchise Agreement
  Factors to Consider Before Choosing a Franchise
  Funding the franchise business - franchisor
  Why Owning a Franchise is a Better Way to Business Success

Article Tags: amp, banks, business model, business models, challenges, exact accuracy, franchisee, franchisees, lenders, lengthy time, likelihood, optimum productivity, owning a franchise, proven track record, repayments, risk, statistics, success rate, successful franchises, vendor financing



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Business Tips - How about: Tips for managers to handle employees more effectively? Tips on how to deal with difficult customers? Tips on how to deal more effectively with suppliers? The only three I have in mind right now, but will try to come up with something else. Chris
Merry Christmas everyone! - I'm just waiting for my son to wake up to start our Christmas traditions and I wanted to drop a quick note here to thank everyone for your support of the forums. We've have an exciting year and hopefully we can reach and help even more entrepreneurs in 2011! I hope you enjoy your families and have a fantastic holiday break... and then get ready to kick some butt with your business in 2011! Merry Christmas everyone!
Re: Re Franchise etc - [quote="bmueller47":e0j0nu4t]Can you see a shift of various types of franchises? What I am thinking about is that today it is more difficult to create franchises, that has great appeal. More and more people want to have their business, but no interference of someone else.[/quote:e0j0nu4t] Not sure what you mean exactly but it is certain that more and more people want to have their own business but not more and more people know what they really want to do, or how to do it. And that's what franchising is all about. Franchising is not for an entrepreneur. An entrepreneur will do his own thing. People who buy franchises want a turn key business, with a proven model. Franchising in the US had never been that good. I don't have the exact numbers in mind but I know for sure that franchising is growing more and more as people are getting more and more aware of this business model.
Franchising vs. Licensing? - What is your opinion on Franchising vs. Licensing? Which is better?
Nominations for a new Franchising Moderator! - Is there anyone you'd like to nominate as our Franchising Moderator (or volunteers for the position)?


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