Before You Buy a Franchise

How To Interview Franchisees To Get The Real Scoop

The most honest and forthcoming franchiser can't tell you what it's like to be a franchisee. So, you should take the time to call existing franchisees and get some candid answers to your questions. Be careful that you don't get a limited list of hand-picked contacts.

It would be a waste of time to talk only to the most successful operators or those who are coached to give the right answers. Calling franchisees at random will give you the clearest picture of what you're getting into. Here are some questions you should ask:

1. Are you happy with your franchiser? How is your experience different from what you expected?
2. How long did it take for you to realize a return on investment?
3. Approximately how much are you earning? Is it what you expected?
4. How many hours a week do you spend working on the business?
5. Did the training your franchiser provided really prepare you to run this business?
6. Were there any hidden fees or unexpected costs?
7. Are there restrictions on the products you sell and use in your business? If so, were you told of those restrictions beforehand?
8. What do you think of the marketing and advertising? Does the franchiser advertise as much as you were promised it would?
9. What kind of support do you receive now? When you have a problem, is your franchiser responsive or do you feel like you're on your own?
10. What did it cost you to build and start the franchise?
11. Did your franchiser accurately estimate the start-up and operating cash you needed?
12. If you had it to do all over again, would you choose the same business and franchiser?

http://www.franchisehelp.com
By Mary E. Tomzack

Learn About Franchising - How to Start a Franchise Style Business

If you are considering opening a new business then you should look at franchising. There are a lot of positive advantages to buying a franchise. You will have a brand that people are familiar with and they will not hesitate to come inside and buy from you.

First you should educate yourself on which franchise businesses are more successful. The key to making money with a franchise is to have a good brand name and a better location. You want to be in a place where there is a lot of traffic and not too many other similar types of businesses.

Then you want to set up a budget because this will help you to know what you can afford. You so not want to spend time looking at a McDonald's franchise if you can not afford it. It is better to have a budget then make a list of the businesses that fit into that budget.

Starting a new business can be challenging and having a partner such as a franchise can really help you. You may find that opening your own business may be cheaper but you will not get the support and being recognizable that comes with a franchise.

Remember that when you have made the decision to go into business for yourself then you should look at all option available to you. Buying a franchise can be great idea because you will have a ready made business. The brand name can help you to generate income right away after first open your doors.

Find a: Great Franchise Now Get: Free Franchise Advice Bryan Burbank is an expert in the field of Business and Franchises Article Source: http://EzineArticles.com/?expert=Bryan_Burbank

The Advantages and Disadvantages of Franchising

Franchising is a great option to take if you're looking for a new type of business to invest in. While it has many advantages, you must know that there are certain drawbacks as well. Remember that not everyone can successfully run a franchise; sometimes no matter how great an entrepreneur is, he or she may fail not because of a lack of skills but a franchise simply is not the right type of business for them.
I suggest that you should first find out more about franchising and decide whether it's suitable to your needs and preferences. To help you with this, I've prepared a list of the pros and cons of having a franchise:

Advantages of a Franchise
• You get to have your own business in only a short period of time, usually 3-6 months depending on the type of franchise you bought
• You can have your own private location so you won't have to compete with your fellow franchisees
• You won't have trouble attracting customers and making sales especially if the brand you've franchised is very popular
• Advertising is not a big problem because your franchisor will take care of all the promotions for the company products and services
• You have strong connections with clients, suppliers and other professionals because you belong to a powerful network
• There are fewer risks involved and you're most likely to be successful in this type of business provided that you manage your franchise well
• You can make use of your franchisor's financing options if you don't enough capital or simply borrow a loan (loans for franchising are easily approved by banks)

Disadvantages of a Franchise
• You have to comply with all the rules, regulations and standards in order to keep the reputation of the company name you're carrying
• You don't have full control over your business
• You can't make your own decisions because the top management has the final say on every issue, so if you have concerns or suggestions, you have to inform your franchisor first and wait for approval
• You have to give a percentage of your sales to your franchisor every month for royalties, even if your franchise is not doing well financially
• Once you sign the franchise agreement and other documents, you have to finish the term
• You also need to implement the necessary upgrades on machinery and methods required by your franchisor so that all the outlets maintain the standard
Now that you know the pros and cons of a franchise, you should carefully weigh your options before you enter this type of business. If everything seems favorable to you, then go ahead and proceed. However, if you're not a hundred percent sure about the terms and conditions, it's best to find another business that's more suitable for you.

Chad Gordon is a well-experienced franchise consultant whose passion is to guide people in finding the perfect franchise opportunities. Aside from giving helpful advice to clients, he has also been managing his own franchises for several years now. To start your search for the best franchise opportunities, visit http://buyafranchisehere.com today and you may just find exactly what you're looking for!

Article Source: http://EzineArticles.com/?expert=Chad_Gordon

FRANCHISE 101

Ninety-five percent of franchises succeed according to the U.S. Commerce Department. The success rate for independent businesses is only about 35 percent. If you want to run your own business without the risk of creating your own start-up you should learn how to start a franchise.

When you start a franchise you buy the right to use the name of a parent company. There are literally hundreds to choose from. Most people buy groceries, fill prescriptions and go out to dinner without ever entering an independent business.

Here is a five-step guide to teach you how to start a franchise.

1. Organize your priorities. Because there are so many franchises to choose from it is important that you know what kind of business you would like to run. Understand the work environment you work best in and what type of business best fits your lifestyle. For example, a restaurant might be a great franchise for you if you like customer service.

2. Research. There are many venues you can use to get more information about individual franchises. The internet is a great resource. If you are willing to spend the extra money, you can also hire a franchising consultant.

3. Contact the franchise you would like to buy. The Franchiser will give you material explaining the specifics of that particular franchise. This is a tricky step because the franchiser is trying to learn about you at the same time you are learning about it. The franchiser wants to make sure that you are the right person to manage its business.

4. Get an attorney. A franchise attorney specializes in reviewing franchise contracts, understanding state statues related to Franchising and limiting your liability. Your lawyer should be a member of the ABA forum on franchising. This organization keeps up with the latest in franchise law.

5. Sign the franchise agreement. This document outlines your responsibilities in running the franchise and the parent company's responsibilities in helping you do so. It will lay out the initial franchise fee, advertising fees and royalty fees. It will also explain the terms of the restrictive covenant - the agreement that prohibits franchise owners from owning any competing franchises. Your lawyer should review the franchise agreement.

Now that you know the basics of how to start a franchise there are a couple of additional points you should keep in mind. Remember that it is difficult to transfer ownership of a franchise. Your contract may restrict or prohibit your re-sale of the franchise. Your parent company must approve any sale you make.

Further, remember that by buying a franchise you sacrifice an element of freedom in exchange for the security of instant name recognition. The added security is well worth the sacrifice. Your parent company will provide training, guidance and resources, cutting down on beginners' mistakes. It also organizes promotion and advertisement so you can focus on your passion - running the business.

Article Source: http://EzineArticles.com/?expert=JD_Files