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The Right Way To Choose Your Franchise

Guest post by: Nigel Mayne

Article Overview: Choosing the right franchise opportunity has been proven to be the key to small business success in good times or bad. Whether you are considering international or local franchise brands, you should initially cast your net wide, leaving the final choice of the industry and location for your business for later and here`s why.

The Right Way To Choose Your Franchise

It’s never a bad time to launch your own business. While a start-up venture in a booming economy seems destined for success, the smart selection of the right franchise opportunity can lead to success whether times are good or bad.

The franchise business model comes with a level of transparency and offers standards and support for franchisors that increase the chances of success when compared with other small business opportunities or multi level marketing schemes, which are often fraught with potential misrepresentations and fraud. Whether you are targeting strong international or local franchise brands, your initial research should be broad, leaving the narrowing down to the industry and location for your business for later

Effective franchisors promote their franchises to qualified investors in a number of ways, including trade shows, franchise shows, trade missions, the internet, targeted public relations, print advertising and the use of franchise consultants or brokers. The draw back to the do-it-yourself approach to narrowing down your best fit is the amount of time you'll need. And even choosing a well-known brand franchise does not guarantee business success.

Location is key in establishing a small business. Never skimp on a prime location as even the most viable franchise may still fail if it is off the path of the buying public.

In a country such as Mexico where the franchise business model is new and the number of franchises as a percentage of other small business is in strong growth stage yet well supported at government level, the level of competition must still be researched. It is always important to take into consideration the proximity of competing business in the surrounding area. If the market is already saturated with like business, then either consider locating to another area or choose a franchise in another industry entirely.

Never underestimate the importance of promoting your business locally. Don`t assume that the brand recognition coming with the franchise is enough. Even though your franchisor may offer you the chance to buy into a marketing campaign, you should always ensure there are funds to promote to your local buyers. The most effective way for new investors to ensure they find the perfect fit franchise is by using a broker who specializes in franchise matchmaking in your region. Brokers’ fees and commissions are paid by the franchisor, who relies upon the consultant to bring forward the qualified or serious franchisee buyer with financing ability.

Franchise consultants (sometimes refeered to as Brokers)know the red flags in the investment field. A fraudulent business deal can taint the dream of the individual and their family, making the independent advice of an expert franchising consultant invaluable.

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Article Tags: franchise consulting, franchisee, MatchPoint Franchise Consulting Network, Nigel Mayne



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]
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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