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To Buy or Not To Buy a Franchise

Guest post by: Rob Lancit

Article Overview: Let’s face it; if you are currently someone’s employee, the prospect of being your own boss sounds pretty appealing. The flip side though is that it is also pretty scary to be 100% responsible for whether or not you bring home a paycheck at the end of the day. My advice to those interested in going into business for themselves: reduce your risks by looking at a franchise opportunity.

To Buy or Not To Buy a Franchise

When it comes to owning their own business, many would-be entrepreneurs find themselves torn between creating a unique company and becoming a franchisee of a recognized brand. While both scenarios have their own set of specific challenges and obstacles, purchasing a well-established franchise often proves to be a more fruitful and enjoyable experience for small business owners. In addition to the existing support structure franchisees are privy to, the previously-established brand recognition in the marketplace makes purchasing a franchise the perfect option for many business owners.

Canadian franchise opportunities can open the door to business ownership, while eliminating many of the difficulties an entrepreneur faces. The ability to focus on the quality of the product or service your business provides, rather than worrying about marketing yourself extensively to the public is one such example. Building on the existing success and strength of a strong brand name means you'll have the opportunity to explore growth on a more stable scale.

Another great benefit provided by many franchise opportunities']);"> Canadian franchise opportunities is the ability to operate one's business in a manner that's already proven to be successful. Whereas new companies spend enormous amounts of time determining what is and isn't working in their business, franchisees are provided with extensive information on the business model that has proven successful in other locations. Removing the trial and error period faced by many entrepreneurs will reduce a franchisee's risk of devastating financial losses and crushing frustration.

Regardless of the motives behind owning your own business, you'll likely want to spend some time evaluating the many different options before you. The plethora of different Canadian franchise opportunities means that finding the perfect business that fits your vision is likely easier than you've imagined. In building your own business within the parameters of an existing organization, you'll have a better idea of what to expect when opening your own doors, allowing you to start building a thriving company on the right foot.

Rob Lancit

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Article Tags: Canadian Franchises, Franchise, Franchise Opportunities



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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