WHAT YOU NEED TO KNOW ABOUT BUYING A FRANCHISE
WHAT YOU NEED TO KNOW ABOUT BUYING A FRANCHISE
Before you begin to investigate the possibilities of purchasing a franchise it might be important to you to know that you have rights. The Federal Trade Commission strictly prohibits franchisors from doing certain things that may put pressure on you to make an immediate decision. Franchise regulations require a franchisor to provide you with full disclosure of their business opportunity in the form of an offering circular referred to as a Uniform Franchise Offering Circular. This document must comply with regulations governing the offering of a franchise. In addition, the franchisor is required to allow you 10 business days to review the document before they can require any payment of fees or signing of a franchise agreement. Any franchisor that violates these requirements can be subject to penalties, fines or prosecution. Also, you might reside in a State where there are laws that the franchisor must comply with.
The Success of Franchising
The success of franchising is unquestionably tremendous. This is due to a number of reasons. The major reason is franchisors are very selective in who they award a franchise too. Most franchisors have a profile of who the franchise candidate will be and if you fit the profile your chances of qualifying increases tremendously. No other business mood has the success of franchising. According to the U. S. Department of Commerce, the failure rate of franchising is less than 4%.
Two Types of Franchisors
The two types of franchisors are simply mature and infant. A mature franchisor has years of experience in franchising and their network is proven, tested, tried and have franchisees who will testify to the value of the franchise business. While an infant franchisor is someone who is just getting started in their franchise venture and may not have all of the tools and techniques in supporting a franchise network in place yet. This is not to say an infant franchisor is not a good purchase. Keep in mind that all franchisors started as an infant franchisor. There are many advantages in purchasing from an infant franchisor.
Two Types of Franchises
The two types of franchises are simply investment and job franchises. An investment franchise is a business that can possibility be an absentee owner that creates equity in the business within a short period of time. An example might be a fast food franchise. These franchises are often more expensive but can be very valuable over a period of time. The job franchise is where the franchisor is offering a business that allows the owner to enter a business that produces daily income. Usually this is a service business.
WHAT YOU NEED TO KNOW ABOUT BUYING A FRANCHISE - To learn more about this author, visit Ken Hollowell's Website.
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What You Need To Know About Buying A Franchise - Series 1
Before you begin to investigate the possibilities of purchasing a franchise it might be important to you to know that you have rights. The Federal Trade Commission strictly prohibits franchisors from doing certain things that may put pressure on you to make an immediate decision. Franchise regulations require a franchisor to provide you with full disclosure of their business opportunity in the form of an offering circular referred to as a Uniform Franchise Offering Circular. This document must comply with regulations governing the offering of a franchise. In addition, the franchisor is required to allow you 10 business days to review the document before they can require any payment of fees or signing of a franchise agreement. Any franchisor that violates these requirements can be subject to penalties, fines or prosecution. Also, you might reside in a State where there are laws that the franchisor must comply with.
The Success of Franchising
The success of franchising is unquestionably tremendous. This is due to a number of reasons. The major reason is franchisors are very selective in who they award a franchise too. Most franchisors have a profile of who the franchise candidate will be and if you fit the profile your chances of qualifying increases tremendously. No other business mood has the success of franchising. According to the U. S. Department of Commerce, the failure rate of franchising is less than 4%.
Two Types of Franchisors
The two types of franchisors are simply mature and infant. A mature franchisor has years of experience in franchising and their network is proven, tested, tried and have franchisees who will testify to the value of the franchise business. While an infant franchisor is someone who is just getting started in their franchise venture and may not have all of the tools and techniques in supporting a franchise network in place yet. This is not to say an infant franchisor is not a good purchase. Keep in mind that all franchisors started as an infant franchisor. There are many advantages in purchasing from an infant franchisor.
Two Types of Franchises
The two types of franchises are simply investment and job franchises. An investment franchise is a business that can possibility be an absentee owner that creates equity in the business within a short period of time. An example might be a fast food franchise. These franchises are often more expensive but can be very valuable over a period of time. The job franchise is where the franchisor is offering a business that allows the owner to enter a business that produces daily income. Usually this is a service business.
WHAT YOU NEED TO KNOW ABOUT BUYING A FRANCHISE - To learn more about this author, visit Ken Hollowell'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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Staging DivaDebra Gould, aka The Staging Diva®, is President of Six Elements Inc., an internationally recognized home staging company. Inspired by many requests from aspiring home stagers wanting to start similar businesses, Gould created the Staging Diva Home Staging Business Training Program. Gould has trained over 1000 Staging Diva Graduates worldwide to start staging businesses. Buying decorating and selling six of her own homes in four years lead to an interest in real estate staging which she turned into a career with the launch of sixelements.com in 2002. Since then she has staged hundreds of homes in addition to teaching home staging training. Gould is the author of several home staging resources including a series of popular ebooks made up of a Design Guide, Color Guide and Portfolio Guide. For more information about Debra Gould visit stagingdiva.com. - Visit Staging Diva's Website |
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 Ken Hollowell (Visit Ken's Website) – Ken M. Hollowell, founder of both National Franchise Services, Inc. and Profran Consultants, Inc. and is a leader in the field of franchise development since 1980. Mr. Hollowell has lectured before many business organizations, Universities and Colleges on the subject of franchising and hosted a radio talk show of radio for years. He conducts numerous seminars annually on franchise development and investing in a franchise business throughout the United States. He is regularly requested by the Small Business Administration in Washington, D.C., S.C.O.R.E., Learning Annex and the International Franchise Association to speak on franchising. Mr. Hollowell's well-rounded experience and practical knowledge in both development and marketing have led him to be one of the most sought after franchise consultants in America. Mr. Hollowell has written many articles on both developing a franchise network and buying a franchise. Mr. Hollowell sits on no less than a dozen boards of directors.
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