Franchise Note

100 Questions You Should Ask or Answer before Buying a Franchise

Ivan Widjaya — Sat, 17 Jul 2010 02:32:54 +0000

100 franchisee questions

Not all can be franchisees – there are certain personality traits and circumstances that can hinder you from being a successful franchisee.

Are you a franchisee material? Here are 100 questions to ask or answer to ultimately help you determine whether you have all the potential to be a great franchisee or not, excerpted from Franchise Bible:

1. Have you and your spouse and knowledgeable family members discussed the idea of buying a franchise?

2. Are you in complete agreement?

3. Do you have the financial…

How to Resolve Franchise Disputes

Ivan Widjaya — Mon, 05 Jul 2010 13:08:08 +0000

Dispute resolution

Franchising is about teamwork and relationship. In any kind of relationship you will encounter frictions, whether you like it or not. Here’s my view on how to resolve franchise disputes.

Disputes are often inevitable. Franchisors are doing their best in forming a franchise agreement that will work for them and for the franchisees. Franchisees are also doing their best in complying with the agreed franchising terms.

Unfortunately, there will be times that what’s written in the franchise agreement can’t be met by either franchisors or franchisees. Since there are…

Franchise Partnership: If Running a Franchise Unit Yourself is Too Much to Handle

Ivan Widjaya — Mon, 14 Jun 2010 06:38:23 +0000

Franchise Partnership

Buying a franchise unit is probably easy if you have the capital, but running one is a different story.

Firstly, a franchise owner is required to be responsible for the whole business operations, from hiring to managing finances. This is a good thing, but not many can actually do this well – wearing many hats is not for everybody.

Secondly, a franchise owner is expected to build a good relationship with the franchisor and other franchisees, because in essence, franchising is all about relationship. Also, you are expected to…

Franchise Opportunities – Easy to Run, No Experience Required

Ivan Widjaya — Sun, 30 May 2010 03:01:01 +0000

Franchising is not magic

“Franchise opportunities – easy to run, no experience required!”

In this article I want to be totally honest with you: Whenever you encounter such offer, not only in franchising but in any business opportunities, my only suggestion for you would be to stay away, even run away from them.

Franchises are mistakenly touted to be businesses that are easy to run – thanks to the proven franchise system in place. This is misleading and could lose franchisees money eventually.

Here’s the cold, hard truth: Despite the proven…

Franchisee: How to Gain the Most from Your Franchise Agreement

Ivan Widjaya — Sat, 22 May 2010 07:48:27 +0000

Franchise agreement signing

You have prepared everything you need to do to buy your dream franchise: Location, check. Market research, check. Financing, check. The due diligence, check, check and check. Now it’s time to move a step forward: Let your franchisor know that you are ready for reviewing and signing a franchise agreement.

Franchise agreement is where things are put at stake – Misinterpret it, and you’ll face the consequences for at least 5 to 10 years.

Franchise agreement can be 50 pages long, even more, and can be overwhelming to…

Buy a Franchise: How to Finance Your Purchase

Ivan Widjaya — Fri, 21 May 2010 17:16:05 +0000

Franchise financing

Finally, the search is over – you have done your homework and have found your dream franchise and you just know it has a bright future. The next step would be: buy the franchise; the big question: how will you finance the purchase?

Unfortunately, franchises are stereotypically known as businesses requiring quite an amount of investment and cash – something that not many of us have. Don’t lose hope, though – as an entrepreneur and business owner, you must acquire the all-important skill: the ability to leverage other people’s…

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Should You Buy a Franchise Resale?

Ivan Widjaya — Wed, 19 May 2010 07:56:59 +0000

Franchise resale

If you consider yourself not having a knack in starting out business or buying a new franchise unit, you might want to consider buy a franchise resale.

A franchise resale is essentially an established franchise unit that already has built a credible track record in the marketplace and community. The number one benefit of buying a franchise resale is that you will get not only a proven franchise system, but also a franchise unit that has an established financials, business operation and customer base.

Despite the huge benefit, you…

Why do You Want to Buy a Franchise?

Ivan Widjaya — Mon, 03 May 2010 03:45:31 +0000

What is my reason in buying a franchise?

Choosing and buying a franchise is easy. The tough part is finding the right reason why you want to buy one. Learn from my mistakes.

I remember all the excitement that comes with the process of finding the right franchise to buy. Visiting franchise expos, talking with franchise owners, visiting franchisees’ stores, getting pitched by franchises’ marketing team… and so on.

All seem wonderful. All seem promising. All seem sure-fire.

I decided to pick one of the many. A business service center, the…

Learn More on Franchise Legal Issues: The Legal Eagle Franchise Series

Ivan Widjaya — Sat, 01 May 2010 08:23:13 +0000

Franchise legal issues

Are you eager to find out the ins and outs of franchise legal issues?

Paul Segreto’s franchisEssentials has just announced the debut of its very own ‘Legal Eagle Franchise Series’ on the weekly broadcast of Franchise Today. The Series started on April 29th.

The 4-week series will feature discussions with leading franchise industry legal experts, including:

Michael Webster, Franchise Attorney and Chairperson of the Strategic Committee of the International Association of Franchisees and Dealers;
Lane Fisher, Partner at FisherZucker LLC; and a member of the

…

How to Choose an Ethical Franchise

Ivan Widjaya — Fri, 16 Apr 2010 06:37:39 +0000

Promise?

I heard too many stories of franchisees who “feel” that they were being cheated by their franchises, resulting in an under-performing, if not dying, franchise units.

The general rule of thumb in any business agreement is: read every word, and don’t forget the fine print.

Not to discredit franchisors, but some seem to have a subtle intention to “trick” franchisees into signing for franchise agreement. Alas, we can’t ask for franchisors to guarantee anything – they can’t, and even if they do, they are considered as both unethical and illegal.…