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Before Selecting a Franchise System

Written by: Start Your Business

Article Overview: Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals. The following checklist may help you make your decision.

Before Selecting a Franchise System

Before Selecting a Franchise System

Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals. The following checklist may help you make your decision.

Your Investment

* How much money do you have to invest?
* How much money can you afford to lose?
* Will you purchase the franchise by yourself or with partners?
* Will you need financing and, if so, where can you obtain it?
* Do you have a favorable credit rating?
* Do you have savings or additional income to live on while starting your franchise?


Your Abilities

* Does the franchise require technical experience or relevant education, such as auto repair, home and office decorating, or tax preparation?
* What skills do you have? Do you have computer, bookkeeping, or other technical skills?
* What specialized knowledge or talents can you bring to a business?
* Have you ever owned or managed a business?


Your Goals

* What are your goals?
* Do you require a specific level of annual income?
* Are you interested in pursuing a particular field?
* Are you interested in retail sales or performing a service?
* How many hours are you willing to work?
* Do you want to operate the business yourself or hire a manager?
* Will franchise ownership be your primary source of income or will it supplement your current income?
* Would you be happy operating the business for the next 20 years?
* Would you like to own several outlets or only one?

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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]
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