Franchise Articles, Information and Updates

Summertime Franchises

2013-09-05T09:58:00.000-04:00

As the calendar moves on toward the warmer months of summer, thoughts of new adventures and discovery abound. Leaving the old behind and energetically charging ahead toward something new. Why not harness that internally energy and focus on starting a business? Here are a few summertime franchises to consider.

Frozen Yogurt – A cool, sweet treat on a hot, summer’s day. There has been a notable upswing in the frozen yogurt category. Both fun and healthy, this segment is a summertime favorite. Because of the self-serve model, there is relatively low inventory and nearly zero waste. Also, lower labor costs

Pizza – Summer is the time for pool parties, reunions and picnics. Bring a long some pizza to feed the crew. Pizza is already packaged for travel (in a box) and ready for the party. There are many pizza franchises, each with their own “special sauce.” You’ll want to look at brands that meet your budget, and have a marketing system to outdo their competitors. The pizza business could be your summer break out. No matter how you slice it, pizza is a hot seller.

Automotive – With summer there are road trips and cruising. People love to get in their vehicles and take to the open road. Consider an automotive franchise. Whether in service and repair, or cosmetics and detailing, you’ll be servicing a large segment. You won’t need to have a mechanical background for most franchises, since there are systems to train you to hire and manage those who perform the service.

Take advantage of your summer energy to take on new challenges and let go of your old thoughts and beliefs that hold you back and start a business. You can us the help of a professional franchise consultant to assist you.

Franchise Consultants | FranFinders

2013-08-30T15:24:00.001-04:00

Fitness Franchises - Get Financially Fit

2012-03-07T10:00:00.000-05:00

Because there is so much emphasis placed on good health and fitness in this day and age, fitness franchises are definitely a worthwhile pursuit. If you are looking for a franchise to create or one to invest in, there is a variety of different fitness franchise options for you to consider including gym franchises, trainer franchises and other fitness-related franchise opportunities.

Fitness franchises come in numerous different forms depending on what you are most interested in. There are franchises to meet virtually any need under the sun when it comes to health and fitness. If you are looking for a franchise opportunity that is going to allow you to help other people help themselves, then this is definitely an option that is well worth pursuing. With a fitness franchise you are essentially buying into a company that helps you open your own business in a fitness-related industry. Here is a look at some of the fitness franchises that are available for you to open:

Types of Fitness Franchises

The most obvious type of fitness franchise is a gym franchise or a fitness center franchise. Many different companies offer fitness franchises along these lines. Another type of fitness franchise is a personal training franchise, where you would offer fitness training to customers through a franchise company.

There are also other types of franchises that you can choose from, such as fitness equipment company franchises where you sell the actual equipment rather than the services associated with using it. Each of these types of fitness franchises is going to offer different opportunities and different experiences depending on what you are most interested in and passionate about.

If you are interested in opening a franchise and you are passionate about fitness, then it would be well worthwhile for you to consider one of these fitness franchise opportunities. A franchise consultant can help you determine what the right type of franchise is for you to open. Contact a consultant today to get some much needed advice on how you can turn your passion for fitness into a business opportunity that will be successful for you.

Franchise Fundamental : Minimize the Risk

2012-02-29T09:22:00.000-05:00

In a sense, the franchise business model whose primary purpose is risk minimization. Every study ever done on the success rate of new (non-franchise) business startups concludes the same thing. Starting up a new non-franchised business has a much higher failure rate than starting a franchised business. The primary reason that the failure rate is so high is because the owners have to go through the learning curve of operating that specific type business.

Unfortunately, the market place is not very tolerant of the inexperienced neophyte trying to learn how to operate a new business. If you can’t compete in the market place, you get eaten by the sharks very quickly, you go bust, you lose money, your credit, your home, your reputation and sometimes even your family. Failing in business can be a horrible experience. Unfortunately this happens to thousands of poor souls every year in the U.S., and it is so unnecessary. Unless you have considerable experience in the specific type business that you are considering going into, it is very probable that you will fail.

Business format franchising is as close as you are going to come in today’s market place to a guarantee of success. All the studies done have found that franchise new business startups rarely fail and when they do it is typically because the franchisee did not stick to the franchiser’s systems. In all human endeavor, there is involved, a learning process. This learning process requires going through a series of trial and error encounters wherein knowledge is gained by trying and failing, trying and failing, again and again, and eventually trying and succeeding. This process is generally called the learning curve.

In the context of franchising, the franchiser has already gone through the learning curve and has learned the secrets of success for the specific business. In business format franchising all that has been learned by going through the curve is transferred to the franchisee. This is fundamentally why you buy a franchise, to minimize risk and give yourself the best possible chance to succeed.
Another reason why it is prudent to buy a franchise is that a franchise investment can be thoroughly researched before any significant expenditures are made. With a new business startup (non-franchise) you are always operating in the dark. No matter how much research you do it is very difficult to get a handle on so many aspects of the new business. With a franchise the franchiser is a wealth of information about the business from how to prepare a pro forma to the best personality traits for the business. But the most important information comes from the existing franchisees.

With a good systematic approach you can get answers to nearly all the really key questions. Such as, do you feel that you were properly trained, how long did it take before you reached break even, what is your annual return on investment, how do you feel about the day to day duties of the business, and if you had it to do over, would you do it again? You can in a very real sense try the business on before you buy to make sure it is a good fit for you.

Another very important reason to buy a franchise is intertwined into its basic nature. Franchising inherently leads to rapid growth, because the franchisees provide the expansion capital. There are few restraints to growth in franchising. As a franchise system expands into hundreds of units many positive things begin to happen. The name begins to become well known because people see it everywhere. Most people associate size with success. The bigger the franchise the better it must be.

The large number of units enables the franchise to advertise heavily, which tends to increase sales. A synergy begins to be created in which success begets success. The franchise begins to squeeze out competition through its sheer size. The franchise can buy products in large quantity at significant discounts, which it passes on to the franchisees. The synergy just grows and grows.

In summary, the primary reason you should buy a franchise as opposed to starting up a non-franchise new business, is to minimize risk and enhance your chances of success. Also, when conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.

The Upside of Franchise Ownership

2012-02-22T09:19:00.001-05:00

The following benefits provide a good rationale for going into business by purchasing a franchise business. These must be balanced by the costs or disadvantages.

Lower Risks. Most business experts agree that a franchise operation has a lower risk of failure than an independent business. The statistics on this vary depending on the definition of failure. Whatever statistics are used, they consistently suggest that a franchise is more likely to succeed than are independent businesses.

Established product or service. A franchisor offers a product or service that has sold successfully. An independent business is based on both an untried idea and operation. Three factors will help you predict the potential success of a franchise. The first is the number of franchises that are in operation. The second predictor is how long the franchisor and its franchisees have been in operation. A third factor is the number of franchises that have failed, including those bought back by the franchisor.

Experience of franchisor. The experience of the franchisor's management team increases the potential for success. This experience is often conveyed through formal instruction and on-the-job training.

Group purchasing power. It is often possible to obtain lower-cost goods and supplies through the franchisor. Lower costs result from the group purchasing power of all franchises. To protect this benefit, most franchise agreements restrict the franchisee from purchasing goods and supplies through other sources.

Name recognition. Established franchisors can offer national or regional name recognition. This may not be true with a new franchisor. However, a benefit of starting with a new franchisor is the potential to grow as its business and name recognition grow.

Efficiency in operation. Franchisors discover operating and management efficiencies that benefit new franchisees. Operational standards set in place by the franchisor also control quality and uniformity among franchisees.

Management assistance. A franchisor provides management assistance to a franchisee. This includes accounting procedures, personnel management, facility management, etc. An individual with experience in these areas may not be familiar with how to apply them in a new business. The franchisor helps a franchisee overcome this lack of experience.

Business plan. Most franchisors help franchisees develop a business plan. Many elements of the plan are standard operating procedures established by the franchisor. Other parts of the plan are customized to the needs of the franchisee.
Start-up assistance. The most difficult aspect of a new business is its start-up. Few experienced managers know about how to set up a new business because they only do it a few times. However, a franchisor has a great deal of experience accumulated from helping its franchisees with start-up. This experience will help reduce mistakes that are costly in both money and time.

Marketing assistance. A franchisor typically offers several marketing advantages. The franchisor can prepare and pay for the development of professional advertising campaigns. Regional or national marketing done by the franchisor benefits all franchisees. In addition, the franchisor can provide advice about how to develop effective marketing programs for a local area. This benefit usually has a cost because many franchisors require franchisees to contribute a percentage of their gross income to a co-operative marketing fund.

Assistance in financing. It is possible to receive assistance in financing a new franchise through the franchisor. A franchisor will often make arrangements with a lending institution to lend money to a franchisee. Lending institutions find that such arrangements can be quite profitable and relatively safe because of the high success rate of franchise operations. The franchisee must still accept personal responsibility for the loan, but the franchisor's involvement usually increases the likelihood that a loan will be approved.

Proven system of operation. An attractive feature of most franchises is that they have a proven system of operation. This system has been developed and refined by the franchisor. A franchisor with many franchisees will typically have a highly refined system based on the entire experience of all these operations.

When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.

What's Ahead for Franchising?

2012-02-15T12:15:00.003-05:00

The growth of the franchise business is inevitable, because of the inescapable logic of the underlying concept. Franchising clearly offers aspiring, new business owners the best possible chance of succeeding with the least risk. Within a decade or less, franchising will comprise over 50% of the retail economy, will employ millions of people, and will enable hundreds of thousands to realize the American dream of successful business ownership.

As the U.S. and world economies grow with the ever increasing populations, and the move toward free market economies, new franchise concepts will come on the scene and the solid, well managed existing franchise companies will continue to grow.

There is a move toward better protection of franchisee rights and over time this will push more franchisers towards structuring their relationships with their franchisees in a totally win/win manner. Most franchise agreements in today's market are written strongly in the favor of the franchiser. Franchising is evolving; it's getting better conceptually and in reality. There are greater opportunities for wealth creation among both franchisees and franchisers today then ever before.

The future of franchising is as bright as the sun and if you want to take the big step and go into business for yourself or if you have an existing business that you want to optimize, then you should look closely at franchising as the vehicle to take you to where you want to be in the 21st century. By utilizing the free services of a FranFinders expert franchise consultant, you will be on your way to the future.

The Birth of Franchising

2012-02-08T13:12:00.000-05:00

The word Franchise comes from old French meaning privilege or freedom. In the middle ages a franchise was a privilege or a right. In those days, the local sovereign or lord would grant the right to hold markets or fairs, to operate the local ferry or to hunt on his land. This concept extended to the Kings granting a franchise for all manner of commercial activities such as building roads and the brewing of ale. In essence the king was giving someone the right to a monopoly for a certain type of commercial activity. Over time the regulations governing franchises became a part of European Common Law.

Over the centuries the franchising concept has evolved as the economies of the nations of the world have evolved. In the 1840’s in Germany certain major ale brewers granted franchises to certain taverns, giving those taverns the exclusive right to sell their ale. This was the beginning of the concept of franchising as we know it today.

The first American franchise business is reputed to be the Singer Sewing Center, developed by Isaac Singer in 1858. After Singer invented the sewing machine, he encountered two significant obstacles in bringing it to market. Consumers had to be taught how to use the new invention before they would buy, and Singer lacked the capital to manufacture his machine on a mass basis. Once Singer seized upon the idea of selling the rights to local business people to sell his machine and train users, his enterprise expanded rapidly. Fees for the license rights helped fund his manufacturing, and because each franchisee was self-financed, Singer was spared the expense of hiring each center’s manager. Singer had written franchise contracts, which were the forerunners of modern franchise agreements.

In the 1880’s cities began to grant monopoly franchises to streetcar companies and utilities for water, sewerage, gas and later electricity.

Around the turn of the century, the oil refinery companies and the automobile manufacturers began to grant the right to sell their products. At this stage in the evolution of franchising it was essentially just the granting of the right to distribute and sell a manufacturer’s products.

Business format franchising, which is the dominant mode of franchising today came onto the economic scene after World War II with the return of the millions of US servicemen and women and the subsequent baby boom. The baby boom is still driving the economy and will continue to do so into the next century. There was an overwhelming need for all types of products and services, and franchising was the ideal business model for the rapid expansion of the hotel/motel and fast food industries.
During the explosion of the 60’s and 70’s there were many abuses in franchising. There were a number of totally fraudulent franchise companies that literally took peoples money and ran, and there were a number of companies that were undercapitalized and poorly managed which went bankrupt, leaving a trail of failed franchisees who had lost everything.

It became clear that the franchise industry had to change in order to remain a viable business concept. On the industry side, The International Franchise Association was created with the specific intent of uplifting the entire industry. The IFA holds training in all aspects of franchising which greatly enhances the professionalism of the industry. Members of the IFA are required to adhere to the IFA’s Code of Ethics which set a high standard. The IFA works closely with the U.S. Congress and the Federal Trade Commission on improving how the industry relates to the franchisees.

On the government regulatory side, the Federal Trade Commission, in 1978, required that all franchisers submit to all potential franchisees a disclosure document called the Uniform Offering Circular or UFOC, before receiving monies. The UFOC provides very detailed information on the franchise company, such as its history, information about the officers, litigation history, audited financial statements, the franchise agreement, which is the contract between the franchiser and franchisee and a current list of franchises with owners names and telephone numbers. The intent of the UFOC is that it provides enough information so that the prospective franchisee can make an informed decision. The FTC doesn’t actually review the UFOC unless there is a complaint and it decides to conduct an investigation.

Recently, in 2007 the FTC updated and modernized the Franchise Law. Most importantly is the replacement of the UFOC with the Federal Disclosure Document or FDD.

Franchise consultants have been involved with helping prospective business owners find a franchise that meet personal goals for that last 3 decades.

Franchise Statistics

2012-02-01T11:09:00.004-05:00

Franchise Statistics

Franchise businesses account for nearly 50% of all retail sales in the United States.
Franchise businesses employ more than 14 million Americans
There are an estimated 5,000 franchise companies operating in the U.S. doing business through nearly 500,000 retail outlets.
Seventy-Five industries use franchising to distribute goods and services to consumers.
1 out of every 12 business is a franchised business.
Total sales by franchised businesses is approaching 2-trillion dollars.
A U.S. Department of Commerce study conducted from 1971 to 1997 showed that during that time less than 5% franchise businesses were closed each year.
A 1999 study by The United States Chamber of Commerce found that 86% of franchises opened within the last five years were still under the same ownership and 97% of them were still open for business.
Compare that to a U.S. Small Business Administration study conducted from 1978 to 1998, which found that 62% of non franchised businesses closed within the first 6 years of their existence due to failure, bankruptcy, etc.
A new franchised business is opened every 8 minutes of every business day.
In 2000, the median gross annual income, before taxes, of franchisees was in the $75,000 to $124,000 range, with over 30% of franchisees earning over $150,000 per year.
According to the February, 2005 article by the NFIB, 1 of 4 small businesses with employees have their primary location at home. 85% of small firms are operated by owner-managers.
From January, 2000 to December, 2004 the index that tracks the performance of the top 50 franchisors increased 34.5% compared to a drop of 20.1% in the S&P 500 during the same period.

If your considering investing in a business, one of your safest bets is a franchise. Franchises are a popular way to launch a new company because they are highly likely to succeed. According to the U.S. Department of Commerce, 95% of franchises are still in business after 5 years. The likelihood a self-launched business will still be in business after 5 years is 47%. Buying a franchise more than doubles your chance to survive as a business owner. And, by picking the right franchise, your chances can improve beyond 95%.

By using the aid of a professional franchise consultant, you will able to understand how these franchise statistics may impact your search for a business.

Source: U.S. Dept. of Commerce

What to Ask a Franchisee

2012-01-25T19:09:00.000-05:00

When you begin your franchise due diligence process of determining whether a particular franchise is right for you, you will need to contact current and past franchise business owners. This part of the process is referred as validation. During validation you speak with the owners and get their perspective.

Following are a list of questions to ask current franchise owners:

How long have you been in business?

Would you make the same decision again?

How is corporate support?

Are your earnings meeting your expectations?

What profit margin can I expect? - year 1, year 2, year 3

How long did it take you to break even?

Any unforeseen expenses?

What is your biggest challenge in the business?

How long do you plan to stay in this business?

What do you wish you would have known when you started?

What is the best thing about this company?

As you can see, these are the basic questions that will help you see beyond the surface of any franchise. With the help of a franchise consultant you will be able to find the answers, helping you make the right decision, thus making validation an extremely important step of the franchise due diligence process.

Path to Owning a Franchise

2012-01-18T12:05:00.003-05:00

To break down a large goal into manageable tasks is necessary to be able to confidently complete any project. It is no different for finding a franchise business that meets your goals. We've broken down the process of buying a franchise into 3 simple steps: Exploration, Evaluation and Execution. This is our proven, E3 Process.

These steps can further be divided into sub parts. The following breakdown shows the typical path toward franchise ownership.

Exploration: Explore Your Goals

Analyze Lifestyle Needs

Analyze Business Goals

Analyze current financial position and future goals

Help Determine Type of Business

Evaluation: Evaluate Your Options

Research Applicable Franchises

Obtain Franchise Packet and FDD

Speak in-depth with Franchisors

Interview Existing Franchisees

Second Interview with Franchise

Consult with Attorney and Accountant

Visit Franchise Headquarters

Execution: Execute Your Plan

Enter Into A Franchise Agreement

Obtain Real Estate

Franchise Initial Training

Complete Construction

In-Store Training

Open For Business

On-Going Support

We've developed our proven E3 process of franchise due diligence to simplify and expedite the entire process. Contact one of our FranFinders expert Franchise Consultants today for your free franchise consultation.

Appealing Characteristics of a Franchise

2012-01-11T15:08:00.004-05:00

Being able to quickly identify the type of franchise business that meets your interests and objectives will save you time and money not to mention headaches. By understanding the basic franchise characteristics you will be able to make better choices.

Franchises types fall into five basic categories. Understanding what is involved with each category will help you target the type of business that appeals to your needs. Below are listed the categories with their attributes.

Home Based

Low overhead

Low initial investment

No Inventory

No Receivables

No/Little equipment needed

No/Or Few employees

High income potential

Good working hours/Possibly part-time

Direct Marketing of your Services Necessary

Business to Business

Do business with other businesses

9-5/Business hours

No consumers

Sales related

Face to Face

Professional experience needed

High Income Potential

Management/Consulting experience

Direct Marketing of your Services Necessary

Service

Skilled to Non Skilled/Blue collar

Lower Education Requirements

Craftsmanship Techniques and Training

Manual or Hands On Work

Maintenance Industry or Focused

Management of Unskilled/Low wage employees

Lower initial investment

Strong Marketing Programs Incorporated

Moderate to High Income Potential

Passive/Absentee

Simple Business Models

Investment Return Major Characteristic

Management of Few Unskilled/Low wage Employees

Moderate investment Moderate to Good Income

No need to be there/Part-time

Multiple Unit Potential

Continues Working Current Job/Running Current Business

Strong Marketing Programs Incorporated

Retail/Food

Looking for latest trends/Fad businesses

Brand name recognition

7 days a week/Long hours

Manage unskilled/Low wage employees/High turnover

Cash business

High initial investment

Building/Lease

Equipment/Fixtures

High ongoing overhead/Operating costs

Long start up process/Build out

Inventory/Spoilage

No selling/Open door customers come to you

Moderate/Good Income

Now that you know the basic categories and their main characteristics, you can make a better decision as to which franchise is best for you.

When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.

Importance of the Franchise Due Diligence Process

2012-01-04T13:01:00.001-05:00

The entire process of franchise due diligence, for both a Franchisor and a Franchise Candidate, should be about determining whether there is unified thinking. The best advice is to step back at the end of your due diligence process and ask yourself the following question: Did the process help both parties to determine if they have unified thinking about the franchise business at hand? If the answer is not yes, then you've either got more work to do, or something with the system is not right, and you should examine alternatives.

Franchising is about finding the right strategic-partnerships to allow both parties to prosper at a higher level together than they would if they were not to enter into an agreement to do business together.

First of all, you must be comfortable with the Franchising concept itself. The business of the Franchisor is not Franchising. Their business is fast food, or muffler parts, or telecom consulting. Franchising is their strategy to execute that business with optimum results.

Franchising is the Franchisor's strategy to penetrate and dominate a marketplace - simultaneously. You've got to be comfortable with the Franchisor's strategies to do just that. If those strategies make sense to you, it can be a great ride in achieving success together. It can be a great ride in building a brand that increases in value as time marches on. Franchising is also the Franchisor's strategy of pooling resources. Those resources include the resources of the Franchisor, as well as those of the individuals that join the system as Franchisees including their ideas, talents, motivations, financial and management resources.

If you are comfortable with these basic concepts of Franchising, you should then assess your needs, wants and desires to make sure that they can be met with a successful Franchise in the system. You should also bring to the surface all of your fears, uncertainties, and doubts to determine if you feel you can help solve them with the business of the Franchisor, and the future you can create for yourself with that business. The worst thing you can do is leave them buried.

Then there are the basic pragmatic questions. Will the Operating Systems of the Franchisor help you to deliver the business products and services more efficiently, and will they help you avoid re-creating a whole slew of wheels? Will the Support Systems help you to deliver the products and services better and better over time? Will the Brand continue to increase in value for your benefit?

Finally, can you see yourself reaching your goals, dreams and objectives by operating a successful business in the Franchisor's system? Will the Franchise help you to achieve those goals and dreams?

If the Franchisor's strategies make sense to you, and you can see yourself achieving your goals and dreams through the Franchise and its systems, then you have unified thinking - and the sky can be your only limit

When conducting your franchise due diligence, keep in mind the free services of FranFinders expert franchise consultants.

What You Should Know About the FDD?

2011-12-28T12:57:00.003-05:00

Franchise Disclosure Document (FDD), formerly called the Uniform Federal Offering Circular, (UFOC) provides prospective franchise investors with information about a prospective franchise. Company history, background information, risk factors and financial statements are just a few of the items covered.

To protect and inform the investor, the Federal Trade Commission (FTC) determined that a standardized disclosure must be in place for companies to offer their businesses as a franchise. Because the format is standardized, it makes for easy side-by-side comparisons between companies.

The FDD is provided to potential investors of franchises. Which means that this document is usually given to prospective investors who have made efforts to qualify for any particular franchise. Usually a dialog has been established between the investor and the franchisor before the FDD is requested.

Regarding the format of the FDD. It consists of cover pages, table of contents, main body and exhibits.

The cover pages are straight-forward. They contain the name, address, contact information and basic business information. It also stresses how the FDD should be used and where to go for additional help. There is also a state cover page which informs the investor that there may be state franchise laws.

Additionally there is a paragraph on Risk Factors. This area points out potential risks inherent in the particular investment.

The table of contents simply list out the items that make of the body and exhibits of the FDD.

The main portion of the FDD is comprised of twenty-three items.

Item 1: The Franchisor and any Parents, Predecessors and Affiliates

Item 2: Business Experience

Item 3: Litigation

Item 4: Bankruptcy

Item 5: Initial Franchise Fee

Item 6: Other Fees

Item 7: Estimated Initial Investment

Item 8: Restrictions on Sources of Products and Services

Item 9: Franchisee’s Obligations

Item 10: Financing

Item 11: Franchisor’s Assistance, Advertising, Computer Systems and Training

Item 12: Territory

Item 13: Trademarks

Item 14: Patents, Copyrights and Proprietary Information

Item 15: Obligation to Participate in the Actual Operation of the Franchise Business

Item 16: Restrictions on What the Franchisee May Sell

Item 17: Renewal, Termination, Transfer and Dispute Resolution

Item 18: Public Figures

Item 19: Financial Performance Representations

Item 20: Outlets and Franchisee Information

Item 21: Financial Statements

Item 22: Contracts

Item 23: Receipts

In addition, there may be a number of Exhibits. These may include:

List of State Agencies/Agents for Service of Process
Franchise Agreement with Exhibits
Financial Statements
Lease
Collateral Assignment of Lease
Operations Manual
List of Franchisees, Current and Former
Release
Assignment of Franchise Agreement
State Addendums
Spousal/Partner Consent

To be able to invest in any franchise business, you will be required to have received the FDD. By familiarizing yourself with the format, you will have a better understanding of the franchise purchase process. Consider enlisting the assistance of a franchise consultant to aid you in your franchise search.

What is a CFE?

2011-12-21T09:06:00.001-05:00

A Certified Franchise Executive (CFE) is a person who has chosen to take his career in franchise to the next level. He does this by taking a total of 3500 hours of continuing education classes which include courses in experience, participation, core, and electives. Experience and participation classes count for 500 hours each; core classes count for 1600 hours; elective course work earns a CFE student 900 hours.

Those who choose to become CFEs demonstrate that they have taken the initiative to continue their education above and beyond what is or may be required for franchise operations. CFE students are able to reach new goals in such areas as professional development and career planning.

In addition, those who achieve CFE certification also display a sense of pride and self-fulfillment: both personal and professional, and exhibit dedication and loyalty to their careers. Further, they show others how much they believe in the franchising industry and their decision to pursue a career in that area.

Becoming a Certified Franchise Executive allows you to place the letters "CFE" after your name, just as you would any other title or educational accomplishment. When people see this, they are aware that you have voluntarily committed yourself to a higher standard in the franchising field.

Further, becoming a CFE casts you in a more positive light when it comes to seeking employment or working towards a promotion or other type of career advancement.

In order to be eligible to pursue a CFE, a person must be considered as already being active in the franchising field. From there, all necessary requirements of the CFE program must be successfully completed.

A person pursuing CFE certification may take the required courses on his own time, working them around his individual schedule. However, all courses must be completed within three years after he has enrolled in the program. Average completion time is usually 1½ to 2 years. If a person has not completed the program by the end of the third year, it will be necessary for him to enroll again in the problem. This will incur an additional enrollment fee.

A person will be notified when he is getting close to the three-year deadline. In this way, he can arrange to either speed up the process or prepare for re-enrollment.

Anyone who is employed in the franchise industry would do well to consider achieving CFE certification.

Contact one for FranFinders franchise consultants to learn more about franchises and the franchise industry.

What's in a Franchise Agreement?

2011-12-14T09:06:00.002-05:00

Franchises are different; therefore, franchise agreements must by necessity be different in scope and tone. However, there are certain provisions that are or should be included in most franchise agreements.

Obligations of both franchisors and franchisees concerning business operations must be spelled out, in as complete detail as possible.
The amount of training and operational support that the franchiser will be responsible for providing must be clearly stated. This information should also include the cost of the training and operational support.
The territory in which you are allowed to operate your franchise must be plainly stated. In addition, any exclusion which may apply must also appear in this section.
How long the franchise agreement will be in force must be included in the document. Renewal rights must also be stated.
The amount of investment required by the franchisee must appear in the agreement.
Guidelines and regulations concerning trademarks, patents and signs and the rights and responsibilities of the franchisee as pertaining to them must be included in the agreement, and written in such a manner that the franchisee will be able to follow them with minimal, if any, problems.
Fee amounts, including franchise, royalty, and service fees for which the franchisee is responsible must be stated in the agreement.
The responsibilities of both franchisee and franchisor where tax issues are concerned must be addressed.
Conditions and restrictions on the sale or transfer of the franchise must be clearly stated.
Any advertising policies that must be adhered to by the franchisee should be plainly stated.
How franchisee termination issues will be handled must be included in the agreement.
Dispute settlement guidelines must be in the agreement. Further, the paragraphs addressing these must include how the company will settle disputes, how disputes concerning operating practices will be handled, dispute cancellations, and who will be responsible for attorney fees.

By contacting one of FranFinders expert franchise consultants, you can be referred to a competent franchise attorney that can review any franchise agreement sample.

How to Leave your Job Correctly

2011-12-07T09:08:00.000-05:00

If you are considering investing in a franchise, there are quite a few things you are going to have to accomplish before you can even think about quitting your job. Some of them may be easier than others, but you should concentrate on having fulfilled them all before you turn in that notice.

Of course, the first order of business is to figure out what type of franchise you want to invest in. This should definitely be done before quitting your current job.
You want to have the franchise business you have chosen to be operating on at least a part-time basis before you quit. In order to do this, you will most likely have to go ahead and pay the franchise and other start-up fees, so you will have already invested at least some money into the franchise.
Since you will in essence be working two jobs, it is better to have the franchise operating on a part-time basis, at least for the first little while. Otherwise, unless you can employees to keep it open full-time without your presence being required, you are going to essentially be working two jobs, which means you will have no time for family or other activities. Stretching yourself that thin may cause you problems on your current job. This may lead to your having to quit before you are truly ready.
Have a back-up plan. If the franchise fails, you are going to need something to fall back on, either savings or another source of income, or the ability to return to your previous employment. Do not quit until you have established this back-up plan.
Don't quit your job until you are certain you are completely ready. Make sure you have everything in place, including a good business plan, additional income, preferably in the form of savings to cover personal and living expenses, and money that you can put back into the business. Also, check to see what you need to do about keeping your current insurance policies, including health and life. Make sure your back-up plan is in place, and most importantly of all, make sure you have the wherewithal to make your new business work.

Once you have all that in place, you can then confidently walk into your supervisor's office, or the Human Resources Department, and hand in your two weeks notice.

If quitting your job is a priority for you, then Consider using the advice of one of FranFinders expert franchise consultants to assist you with your goal.

Licenses vs. Franchises

2011-11-30T09:03:00.000-05:00

There are distinct differences between franchising and licensing businesses. The chief one concerns establishment and operation costs, but there are others as well. It is important to know about as many of these differences as possible before deciding which one is best for you.

Let's talk about the difference that has already been mentioned: establishment and operating costs. A franchise requires that a significant amount of money be paid at the very beginning. Additionally, you will continue to pay royalty, advertising, and other fees to the parent company.

On the other hand, you only pay for a licensing fee one time, and the cost is usually lower than that of a franchise fee. Because you are not connected with a franchise, however, you do not have to pay royalty fees or provide financial information on your business. You are pretty much responsible, however, for your own advertising and other business-related expenses that might be covered in a franchise.

Relationships between franchisees and parent companies and licensees and those from whom they obtained the license are different. Franchisees can expect to work a little more closely with the parent company; this may be especially true in the areas of training and support. Further, as a franchisee, you retain certain rights to company trademarks and logos.

Also, as a franchisee, you may be limited in some areas, such as where your branch can be located, which products and services you can offer, and possibly even price amounts.

A licensee, however, may not have much contact with the original license holder at all. Further, the license agreement may not include the use of a brand or trademark; rather, as a licensee, you will be expected to make your own mark in the particular market for which you hold a license. You probably won't get a lot of training or support from the original license holder, either.

Further, as a general rule, you do not have any territorial rights. In other words, the original licensor can sell as many licenses, along with the products and services they offer, as he wishes in the same geographic area.

On the bright side, about the only time you will even be in contact with the licensor is when you're buying his product to sell in your store. However, that's all you'll pay, is the purchase price on the product. You won't have to pay royalty, advertising, or other fees to support the licensor.

Whether you seek to be a licensee or franchisee, an expert FranFinders franchise consultant can assist you with your search.

How Franchising Works

2011-11-23T09:06:00.002-05:00

Here is a concise, "pocket-guide" on How Franchising Works.

The Merriam-Webster dictionary defines a "franchise" as "the right or license granted to an individual or group to market a company's goods or services in a particular territory"; also "a business granted such a right or license".

A "franchisor" is defined as "one that grants a franchise", while a "franchisee" is defined as "one granted a franchise". The phonetic pronunciation for franchisor is fran-chi-zor; the phonetic pronunciation for franchisee is fran-chi-zee.

The reader may now be asking himself why, if this is an article on how franchising works, was it necessary for the short lesson in Language Arts? The answer is because for the remainder of this article, we are going to be discussing some fascinating creatures called "Zors" and "Zees", and it's important to know how they got their names.

(Seriously, in the franchise industry, it is common to drop the first seven letters, thus referring to those who sell franchisors as "zors", and those who buy and/or operate franchises as "zees".)
In Franchise World, "Zors" are the people who own businesses that operate as franchises. An example of a franchise in the "real world" would be McDonald's®.
"Zees" are people who live in Franchise World and want to own or operate one of the "Zors" franchises for themselves. In order to do this, a "Zee" enters into a business arrangement, usually by paying a certain amount of money, with a "Zor" which allows him to establish or operate a particular franchise in the "Zee's" desired location.

When "Zors" and "Zees" enter into this business arrangement, both of them reap benefits. "Zors" see a profit from the money that has been paid to operate a franchise. "Zees" have the opportunity to go into business for themselves, thus providing them with steady incomes and employment opportunities.

When you think about it, though, "Zors" and "Zees" actually need each other. Without "Zees" to buy into their franchises, "Zors" may actually start to see a decline in franchise growth.

On the other hand, many times, the purchase of a franchise is a "Zee's" first time to operate a business. And, as is so often the case, the "Zee" is going to need all the help and guidance he can get from his "Zor".

This article may have been written in a light vein, but the fact is that both franchisors and franchisees serve a distinct purpose in their own right. For this reason, it is important that franchisors consider franchisees as partners or equals, affording them all the support and respect they need and deserve. Franchisees need to prove to franchisers that they have earned the respect shown to them, and acknowledge the support by making the franchise as successful as possible.

If you're looking for additional help, there are experts in the industry who work with beginners, they are franchise consultants. Reach out to one today, they can provide the next level of information.

Making the Most Money

2011-11-16T09:06:00.001-05:00

You're asking yourself, "What Franchise Makes the Most Money?" Good question.

A person can't really point to a particular franchise and say, "There's the money maker," because the fact is any franchise can be profitable. So, instead of trying to determine which franchise will make you richer faster; look for things that must be present in order for any franchise to be profitable.

One of the key indicators to a profitable franchise is how well it is managed. As with any business, franchise or otherwise, if it is struggling or otherwise unproductive, often the blame, or at least part of it, is going to rest with management.
The home real estate industry likes to say that the key to a successful home sale is almost always "location, location, location". In the franchise industry, those words could be "market, market, market". There have been instances of franchises succeeding in markets that previously did not seem as though they would support them. However, these are usually the exceptions to the rule: most of the time the success of a franchise will depend on whether or not the services it provides are needed or wanted.
If you want to try to get a clear picture of a franchise's profitability, ask to see the Franchise Disclosure Document (FDD). This is a publication that franchisors—those who offer franchises for sale - are obligated to provide to prospective buyers. If a franchisor is dragging their heels to provide the document, or if there is evidence that certain sections of the document may not be a true reflection of the franchise's profitability, this can be a sign that the franchise is not doing well.
Consider whether or not the franchise has good investment possibilities. If lenders or other financial backers seem reluctant to provide all or part of the money needed to start a franchise branch, this may indicate that the master franchise itself, or at least a good portion of it, is experiencing profitability difficulties. Keep in mind, however, that a number of factors can affect profitability at any given time, so a little more research may be in order to try to ascertain the reason for the investors' reluctance.
One of the best indications of a successful franchise is sound strategy development. The franchise that combines tactics that are known to be successful with others intended to further growth are often the ones with the highest profitability.

The more of the above key indicators, as well as others, that are present, the more likely it is that a franchise will be successful. By looking for these and other signs of good business practices, you can determine which franchises are indeed the most profitable.

To aid you in evaluation these indicators, one of many franchise consultants can assist you

How to Start a Business | Franchise

2011-11-14T09:03:00.001-05:00

People often choose a franchise as a means of starting a small business. This is because much of the "groundwork" - finding a site, stocking the business, and other things, has already been done, making it easy for the franchisee, especially if it is someone who is just starting out, to get things going.

Buying into a franchise as a means of starting a small business also means that the owner can talk to franchise consultants once he has paid the franchise fee. They can provide him with tips for starting a small business, which may include some of these:

1 - Don't do anything until you conducted your own franchise business search. You have to understand how the business operates before you can open your own franchise. Others can offer you suggestions on where to look for information, but you should find and read the information on your own.

2 - Don't be in a hurry. Most businesses that fail do so because the owner tried to expand or grow the business before it was ready. When you get in a hurry, you may lose sight of what's important in running your business. However, even as you are taking your time to do things right, continue to plan for and imagine what you would like to in the way of expansion and growth.

3 - Have your business plan in place before you buy the franchise or as soon after the purchase as possible. Franchise consultants can help you by telling you what they feel you should include in your business plan.

4 - Have a substantial savings account in place before you make the first move towards starting a business. It is this money that will see you through the first few weeks when the business is just getting off the ground and profits may be slow in coming.

5 - Make sure you have all the necessary permits and licenses well before the first official opening day. Nothing is more frustrating than opening your franchise and having it immediately shut down by authorities because the necessary paperwork was not in place.

6 - Do your best to hire the highest quality people you can. And, don't be afraid to hire someone who may demonstrate more knowledge in some aspect of the business than you have. Together, you both can make the business a success.

7 - Make sure your personal assets are protected. If by some unfortunate circumstance the business should fail, protecting your assets means you won't lose everything. Consider registering your business as a Limited Liability Company (LLC). By doing this, you will be able to start over and your personal assets will still be safe.

If starting a small business is a top goal for you, then contact one of FranFinders expert franchise consultants.

Buying the "Right" Franchise

2011-11-09T09:06:00.002-05:00

The question of which franchise should you buy is definitely a personal one. Only you know what you do and don't like to do, what you are good at, and what you will honestly admit that you absolutely stink at.

However, by answering the questions below, and of course, any others you may think of, you can get a picture of exactly which franchise you should buy and which ones you shouldn't even consider.

What do you like to do? What do you think you would like to do?
When you patronize an establishment, do you find yourself thinking, "If this was my business, I'd...(fill in the blanks)."If so, you might want to conduct your own research into franchises dealing with that particular business, and what exactly is involved in owning one.

Remember, however, that when you into any business as a patron or customer, you are not seeing very much of the behind-the-scenes operation. There is inventory control, State and Municipal rules, regulations, and guidelines to be followed, and other things that come with running a business.
How "hands-on" do you want to be?
Do you want to be the one behind the counter, or do you want someone else greeting and assisting customers? Some franchises require that the owner be just as involved as other employees, while others allow the owner more flexibility in delegating tasks and responsibilities.
Why do you want to buy a franchise?
Has it always been your dream to work in a particular field, and you find yourself in a position, financial and otherwise, to fulfill that dream? If so, buying a franchise in the area where you have always wanted to work can help you realize that dream.
What are some of the advantages to starting your own business?
When you are a franchise business owner, you are literally your own boss, at least in your particular branch. You may have to answer to an area or district manager, but you still own your little piece of the enterprise, and it's yours to run as you please, as long as you follow the master franchise rules and regulations.

If the franchise is a success, you never have to worry about being out of work again. As long as your branch is in business, you have a job to go to every day, which will get you out of the house and into the business world.

Consider leaning upon the expert advice of a franchise consultant, many have found the answer to the "Which Franchise Should I Buy?" question by working with one of many franchise consultants.

Franchise Discovery Day Expectations

2011-11-02T09:08:00.000-04:00

One of the most popular television shows recently has been "Who Wants to Be a Millionaire?" When it comes to deciding upon your "Final Answer" about your future and your franchise selection you need to study and do your home work. That is, you need to complete your due diligence, a thorough investigative process, as you prepare to take to the stage as a contestant during the initial franchise presentation.

The day that you meet with the prospective franchisor company face-to-face at the company headquarters is often referred to as Franchise Discovery Day. At that point you have the opportunity to learn detailed facts and figures about the firm’s business model, and you have the chance to be the one asking the questions, and by all means, be well-prepared to do so. Ideally, you will have already consulted with a few existing and even former franchise owners with regards to their experiences.

This critical meeting will center around the Franchise Disclosure Document (FDD) which is required by the Federal Trade Commission. The FDD (formerly called the UFOC - Uniform Franchise Offering Circular) is a legal, binding agreement that covers the following topics and must be reviewed at least 14 days before a franchisee ever signs the contract:

History of the franchise
Franchise fees and royalty fees
Information about franchisor executives, directors
Company litigation history
Terms of the franchise agreement
Estimates of initial costs, inventory, insurance
Renewal options
Territorial boundaries
Products and services
Training program
Franchisee obligations

The franchisor also must provide information regarding the responsibilities it has to the franchisee:

Training program
Territories and locations
Advertising and marketing support
Management and operational planning support
Trademarks, patent and copyright information
Audited financial statements
Existing franchise statistical information
Vendor and product restrictions
Renewal, termination, dispute terms

Caution: before you sign any Franchise Disclosure Document, it is imperative that you seek legal advice as well as counsel from your financial advisor. Remember the Boy Scout motto: "Be Prepared."

Finally, similar to the "Who Wants to Be a Millionaire" program, know that you have a "lifeline" - the opportunity to collaborate with one of FranFinders franchise consultants whose professional experience can be invaluable.

Spotting a "Hot" Franchise

2011-10-26T09:06:00.001-04:00

"When you're hot you're hot, and when you're not, you're not" according to the Jerry Reed classic song of the same name. No truer words have been spoken that could describe a multitude of franchising opportunities.

Practically everyone wants to be associated with the latest and greatest, the next big thing, whether it involves a franchise, the latest phone, or the newest car. Be careful where you tread, however, because what may seem hot at the time, could just be a flash in the pan. Conversely, what's old can often be new again.

Customer demands and needs may vary from year-to-year. External market conditions, such as the economy, government regulations, or competitive pressures can change your business dynamics overnight. So, how do you decide what is hot and what is not?

Let's take a look at several key factors that may help you in your decision-making process:

Start by simply getting a general feel about trends by sheer observation of the marketplace
Do in-depth research on-line, read trade journals, attend shows, even participate actively on social media (LinkedIn, Facebook, Twitter, etc.)
Venture out and meet experts in the your industry or field of interest
Consider counter-trends: if everyone is into burgers, perhaps consider hot dogs
Study demographics and buying habits of various age and income groups in your region
Realize that a tried and true franchise may seem old, but just one new item might change the face and fortunes of the franchise
Consider your risk-aversion and risk-taking profile

When it comes to the bottom line - your bottom line - it is up to you to assemble all of the facts you have gathered, study them, face them head on.

Then decide what is best, for not only your finances, but also with regard to your personality, lifestyle, business experiences, as well, of course, what people truly want and need. In other words, select the hot franchise business that meets your needs and objectives, not just the "flavor of the day."

Only when you match each of those parameters to the plethora of franchise opportunities, will you be making an informed decision as objectively as possible.

To help you further in your franchising quest for the "hot" opportunity is one of the expert franchise consultants with FranFinders.

Taking the Leap - Franchise Ownership

2011-10-19T09:03:00.001-04:00

As President Franklin D. Roosevelt proclaimed in his first inaugural address: "...let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance."

Think about that quote for a minute. Not only can it apply to your challenging decision to take the leap toward franchise ownership; it also reinforces that you are not the only one who has ever harbored any negative thoughts.

It is normal to have some self-doubt, otherwise you would not be human. Think of the Super Bowl football heroes who say that they have had butterflys in their stomachs before the game of their lives—and then went on to victory and stardom.

Make no mistake about it: franchising is a major life decision. What should override all other aspects of this assessment is that you have a dream—a goal of being a business owner, the head of your own company, a better lifestyle for you and your family. If you can envision it, however, more than likely, you can achieve it.
On the other hand, people can be true visionaries...while others act as Pollyanas. Which are you? Consider these important factors in your thought process:

What is your motivation? Escaping a bad employer, had a job loss, or truly self-motivated?
Do you have a plan? Where will you find the financial resources?
Are you willing to roll up your sleeves and pitch in?
How well are your people skills and ability to deal with the public?
What is your business background? Your overall strengths and weaknesses?

These points are not mentioned to discourage you from becoming a franchisee, but rather to help you start an authentic self-assessment. Still, for many, these represent questions that you may not have had to consider in the past, and an objective gut-check is not always easy to do.

That is why you need a mentor to help you through the franchising maze that encompasses self- awareness, financing, multiple franchise choices, personnel selection, plus legal and compliance issues, to name just a few hurdles. All of these elements you need to seriously consider, even before you sign on the dotted line, which itself can be somewhat nerve-wracking.

Enlist the services of a FranFinders expert franchise consultant to help you "Take the Leap."

Considerations for an Existing Franchise Purchase

2011-10-12T08:45:00.000-04:00

One of the best reasons that many entrepreneurs enter the world of franchising would be that, in a broad sense of the word, it is perceived as a "turn-key" operation, given all of the marketing, branding, training and overall support you can receive from the franchisor.

Taking that "turn-key" approach to the next level might be someone's rationale for buying an existing franchise for sale where presumably the owner has an established base of customers, vendor relationships and possibly, owner financing. Before you decide to go in that direction, however, it might be a good idea to carefully review some of the advantages and disadvantages of that strategy:

Start by reviewing your overall business goals and aspirations. For example, just because the franchise location might be convenient for you may not mean it is convenient for customers because of pending road construction.
Conversely, a site not so close to home may be prime for new development which could add store traffic.
If your desire is to own several units, getting involved with an existing location may not match your financial targets or demographics. If these issues do not represent hurdles for you to achieve your goals, then you should proceed to do your due diligence. Here are a few methods to consider for learning about the existing franchise:
Check with your franchise broker who can help you find existing franchises that may be for sale that match your interests.
The corporate franchisor may also be a source of information about the performance of the existing unit(s) for sale.
Consult with your financial advisor and arrange to review the "books" for the past couple of years in order to determine cash flow, expenses, taxes, margins, and other financial data.
It is also advisable to retain an attorney so that you can ascertain if the seller currently has, or has experienced in the past, any litigation, or perhaps has other building code, tax, or human resource issues.

You need to be inquisitive and intuitive at the same time. Even as you rely upon your accountant or attorney, you - the actual potential franchisee - need to ask pointed questions, and probe deeper as to why the current owner wants to sell.

Do not conclude or assume anything until you are totally satisfied with every answer. That way you will enter into any agreement with your eyes wide open and with full confidence in your business venture.

Our FranFinders franchise consultants can assist you in finding both a new franchise or when you are considering an existing franchise for sale.