|Small Business Guide - Small Business Resources
(Add to Favorites | View All Articles | Resource Directory)
Deciding what kind of franchise to buy
How To Choose A Franchise
You'd like to go into business for yourself, and believe that the best way for you to become your own boss is to buy a franchise. You know it will takes time and money to be successful, and that's OK. But which franchise should you buy? Which makes the most sense for you?
Here are some criteria that can help you make your decision:
1. What products or services would you enjoy selling?
What industries do you like, or dislike? Your best bet is to find a franchise in an industry you know at least a little bit about. All too typical is the case of the Chicago car salesman who decided to change careers and go into business for himself. He bought a basement waterproofing franchise but then found the business boring. He wanted to sell it, but sales weren't as high as he had expected they would be and he had trouble finding a buyer. He was stuck paying off the franchise fee and working at a business he didn't enjoy.
2. How much money do you have available to invest?
The amount of money you have available to invest in a franchise is an important factor. If you've only got $30,000 and the minimum investment for a specific franchise opportunity is $90,000, the opportunity isn't going to be right for you, no matter how much you like the company.
3. What's the total cost of purchase?
The franchise fee won't be your only expense. Find out what you can expect to pay for advertising, training, inventory, insurance, and all other costs in addition to the franchise fee and royalties.
4. How well established is the franchise?
How long has the franchise been in existence? Have they been in business for many years or are they brand-new? How many other franchises have they opened and where are they located?
5. How stable is the franchise?
What is the background of its officers? (Any history of litigation or bankruptcy of the franchise or its officers is supposed to be included in the disclosure document.)
6. What kind of track record does the franchise have?
Have most of their franchisees been successful? Names and addresses of franchisees in your state should be provided before you sign any contract. Call the people on the list and ask about their experiences.
7. What training is available?
Ask what training and support will be provided as part of your franchise fee. Will you get step-by-step instructions and hands-on training? What kinds of manuals and other materials will you get?
8. How close to your store can the franchisor let another franchisee set up shop?
9. Will you be required to purchase supplies or products from the parent company?
If so, compare your cost to the local retail prices of the same goods. There have been instances where the price from the franchise company for goods was higher than the price of the same goods in local retail stores. Selling anything under such conditions would be quite difficult.
10. What do the contract terms say about ownership? Can you sell out to someone else if you wish?
If you want to continue when the contract expires, will it be automatically renewed? Will you be able to convert your store into an independent operation if you should want to?
11. Determine how disputes will be handled should they arise. Watch for clauses requiring arbitration in the franchisor's home state if it is different than yours. Should a dispute arise, you'd have to travel to that state for arbitration hearings.
12. What criteria does the franchise use in selecting franchisees? Do they do any screening? Or, do they seem more interested in getting your franchise fee?
13. Does the franchise use high-pressure sales techniques to get you to sign on the dotted line?
14. Do you like the people you are dealing with?
15. How big is the market for the franchise's products or services in your area and how much competition is there now?
Janet Attard is the author of The Home Office and Small Business Answer Book. Find additional practical tips on choosing and buying a franchise at http://www.franchisetrade.com.
News provided by Yahoo! News and Google News
Correction: SmallBiz-Gas Prices story - Hickory Daily Record
Small Biz in a Digital Age: Analytics - Know Your Options - GoLocal Worcester
Small Biz Sentiment Slips In January - Advertising Specialty Institute (press release)
Fla. lawmakers propose small biz sales tax holiday - First Coast News
AIR MILES for Business celebrates Canada's outstanding entrepreneurs at the 2015 Small Business Achievement Awards
'Small Business Basics Series' begins in March
GST red tape hurting business, economy
SurePayroll Small Business Scorecard(R): Small Businesses on the Hunt for New Hires
Starting your first business? Places to look for solid advice
If you want to start a business in 2005, and start making money almost immediately, the sites listed below are some of the best I have found. I've chosen each site because it is absolutely outstanding in providing the tools you need to get started, as well as taking you through the steps you need to get started immediately.
The Key to Small Business Growth? Buyer Alignment
Unfortunately for all buyers, each selling organization and their individual sales professionals are unique and often require immense amounts of energy to build a relationship with. This keeps buyers guessing, which in turn keeps the sales organization guessing.
The Care and Feeding of Your Small Business
While I was hard at work last week, an everyday drama was playing out in a hospital room in the next town. My niece was working on presenting me with a new great nephew.
11 Benefits of Starting a House Cleaning Business
One of the biggest fears people have about starting a house cleaning business is the fear of having no real security. But for natural entrepreneurs, security comes from designing your own life.
Creating a Dynamite Account Plan
Why do you need an account plan?When you first decide to approach a company through an introduction, networking event, or from your daily routine, you will need to put together and account plan. This account plan will be part of your power page and it will contain information about your own personal approach to winning the account and a plan on when to follow-up.
Trailblazer Interview with Diane J. Levin, Partnering Solutions
Today is a Red Letter Day! It's special because today is the first edition of the Trailblazer Interviews.You'll meet some of the most fascinating, talented folks in the ADR world who I call Trailblazers.
11 Things Small Business Owners Can Learn From The Supreme Court
1. Have A Strong Constitution - Justices deliver decisions by interpreting the U.
Mobile Carwash; Senior Citizens and Mobile Homes
Senior citizens are generally not a large marketing segment for mobile detailers or car washers, however, they should not be ignored. You will find in a near by area a seniors-only mobile home park.
Passion Is Key To A Successful Business
Passion. Passion alone can make your business successful.
What people believe about your business directly affects your chances of success
Pardon my enthusiasm, but a large part of your small business' success is somewhere else. Namely, out among the company's important external audiences.
Don't be shy; tell your success stories
-- Building Credibility Through Success Stories --Successful solo entrepreneurs spend quite a bit of time building and expanding their networks. These networks can cover a broad spectrum - professional associations, community service, school or alumni networks, virtual communities, athletic groups, neighborhood associations.
Creating a Paperless Office
When working from home, it is usual to find that you have your office in an area that is not very big, such as a box room or even in the corner of the kitchen. When your business really takes off, you will begin to discover that your work area starts to get swamped by paperwork and that you are running out of storage space.
Becoming Recession Proof
A lot of business owners I've spoken with lately have commented how their business is slow because of "the recession." If you are one of these people, you might want to reconsider your position.
Small Business Success Tip: Learn Something New Everyday
Your grandfather probably told you to "learn something new everyday". Your grandfather was giving you advice that works for your small business as well as your own education.
Your company is too small for a business plan - and other myths
Are you -- like 70 percent of small business owners -- working without a plan?Here are three myths that need to be dispelled about strategic planning for small business.1.
Seven Common Mistakes Made By Small Business Owners
Most new small businesses won't be in business this time next year. That's the cold hard facts.
A Small Business Consultant Can Help in Many Ways... But One Thing He Can't Provide
A consultant must remember that the business belongs to the client. There is always a danger that the consultant will take a dominant position to the detriment of both of them.
More Business Card Marketing
If you are worried about how many different business cards you should carry, let me speak from experience, you need only ONE!The best way to confuse a potential customer is to present them with more than one business card. You may be doing a number of things and have cards for each one (even have several businesses where you do work) but you need to focus on what it is that you do best.
6 Steps to a Successful Medical Spa Expansion
According to the American Society for Aesthetic Plastic Surgery, since 1997, nonsurgical procedures have increased by 471 percent. Jeff Russell, CEO of MedSpa Financing, comments "Medical Spas are a natural progression of medical practice expansion, having a medical doctor run them gives them the credibility and public confidence needed for their success.
Franchise Company Operations Manual Sample Outline
Many companies wish to expand and a few wish to use franchising as a method of expansion. Not a bad idea, but one must consider the importance of the fine details.
|Home | Site Map | Privacy Statement | More Articles|