Franchise Business

To buy a franchise or not to

admin — Sat, 26 Nov 2011 21:21:41 +0000

Article by Sunshine Consulting

Well, the trials and tribulations of a franchise consultant or franchise broker explain it all.

We need to make sales in order to make money, which is like the way it is. YET from my perspective, we really do not care if someone prefers to buy a franchise. Though, you might find this franchise concept a bit confusing… and somewhat counterintuitive… it’s true.

Now, I check out hundreds of inquiries a week. Some come from advertising; while others from lead sources and also from referrals. Throughout the week, my franchise business, like all businesses, is allocating advertising dollars in the hope of landing a potential customer. The advertising yields inquiries and it is the job of my employees to quickly assess the needs of the prospect and see if they have the potential candidate to buy a franchise and be successful.

Much to the dismay of many, who regularly bash franchise brokers and franchise consulting services provider; there are many in my profession who actually HAVE a conscience. We, actually, focus efforts on determining suitability and then make professional recommendations based on our experience.

While many skeptics may doubt our abilities to determine what models work and actually assess the probability of success, more often than not, many qualified franchise consultants and brokers can get a good feel of a client and their abilities. We have a process that people must follow to determine; if buying a franchise is right for them or not.

Now, it is time to get back to my initial point that raised the question that, “why do we not care if someone chooses not to buy a franchise?”

Well, it is simple because franchising is not for everyone. In fact, given the restrictions, the costs and the limitations, the franchise concept of purchasing the right to someone else’s business is right for people, even if they possess both the financial resources and experience. If you are not willing to be coach-able and follow the process; then, you are not taking advantage of one of the biggest advantages of franchise ownership.

So, if a franchise broker is NOT concerned about whether a prospect elects to buy a franchise or not; then, what are they focused on? This seems to be easy because we all want a concrete DECISION.

Like any other sales role, the phrase goes, “the yes’s are great, the no’s are ok; but, the may be’s will kill you”.

I have seen many qualified candidates not taking the next step out of fear and uncertainty. They simply cannot hold on to the possibility of failure and thus are FROZEN in the forgotten world of indecision. While you may think standard operating procedure is the old fashioned HARD SELL; the reality is, it is not. In the world of franchise consulting and brokerage; you do not sell franchises because one helps people buy.

Franchise ownership or even franchise business ownership for that matter, is NOT for everyone. If your issue is fear and you cannot get comfortable with the risk, the best solution is to simply say NO. If you have enough of a hard time with making the commitment to take the next step; then, you should be rest assured that the next steps would also get harder.

About the Author

The author of this article has specialization in Franchise Concepts.His enormous experience is summed up in the article ‘Franchise Disclosure Document brings the master plans for the Franchise Opportunities’.Along with this he also provides franchise consulting,franchise development and brokerage services to both individuals and franchise systems.Read more:http://sunshineconsultingltd.com

There is more than just franchise fees

admin — Fri, 25 Nov 2011 00:23:40 +0000

Article by Sunshine Consulting

Well, I got a call from a friend of mine looking for some free advice on franchise concept.

They had seen an advertisement on the web to buy a franchise and were really excited at the opportunity. I think the direct quote was, “It only costs 20,000 dollars to buy this franchise and they guarantee a six-figure income in less than twelve months.”

Now, before getting into the fact that making such a claim on a website without referencing the FDD (Franchise Disclosure Document) is against the law and making my friend understand for actually believing on the income claim or before reminding him that NOT everything said on the Internet is true, I choose to suppress my natural sarcastic tendencies and be a little more diplomaticin this approach.

That’s why; I would ask a simple question.

How much does it cost to you in buying this franchise and funding your business operations?

My friend replied that the franchise concept fee would be around 20,000 dollars.

OK, I asked again that how much is needed to fund the franchise business aspects like Working Capital and Advertising?

My friend said 20,000 dollars, which made me think that the cost might be this only to buy this franchise and fund the business and also for that investment you will make 5 multiplied with your money in 12 months.

Suddenly, he showed signs of not being sure that made me make me a pause over franchise brokerage and consulting business.

In all fairness to my friend, this is not uncommon. We see something that seems so good, which makes us excited and it clouds our judgment. If you want to buy a franchise, or any other business, it is important to consider the BIG picture. This means mapping out your costs, preparing a detailed business plan, reviewing the documentation and getting a COMPLETE picture of what it takes to run the business.

When you buy a franchise, there is more than just the franchise concept fee. It is better to think about inventory, employees, real estate and utilities, marketing costs, working capital and training. This is where many business failures occur, a lack of both understanding and having adequate capital to fund the business.

In my experience, everyone (including myself) makes the critical error of not appropriately determining the costs needed. In fact, I always say about being successful in a business. Even if you buy a franchise, it will take LONGER to achieve profitability that you think. In addition to this, it will ALWAYS COST MORE…

I think franchise business ownership can be a great way to build wealth and financial freedom and while I think buying a franchise is a great option, independent businesses can work too. In the end, the key to your success is proper planning. It is necessary to take the time to understand the costs and capital needed. Also, take the time to learn the business, create a plan and prepare yourself for unexpected setbacks that are almost certain to happen. If you take this approach, you will not only make a better decision; but increase your chances for success

About the Author

It takes longer and costs more with a franchise

admin — Thu, 24 Nov 2011 15:24:12 +0000

Article by Sunshine Consulting

How often do I get calls from people, who wish to buy a franchise?

Like any other aspiring business owner, they see a franchise concept investment as a way to create a financial and lifestyle freedom. It can be a more attractive option than employment. For many people, it can be somewhat of a nuisance to have a boss in franchise consulting services. In addition, with an uncertain economy, no job is safe that has made many experienced people seem to be looking for suitable alternatives to generate income, stability and freedom.

But, is it that going for a franchise concept task achieves these goals?

Well, this seems to be a great question. If you happen to spend some time researching on the subject, one is bound to run across many people that have invested their life savings in a franchise system, only and regrettably, to lose their investment and need to start over.

This is one common mistake for people, who buy a franchise. Though, it can be a great opportunity, it does not come without risk. For those that are not familiar with franchise consulting services, essentially you are buying the right to operate a business model that has been developed by someone else. This investment is typically more than starting your own business as you have to pay franchise fees and training costs. Since, franchise fees vary depending on the industry and business type; you are essentially paying anywhere from 20,000 to 40,000 dollars, just for the rights to the system.

In addition, the costs do not stop there. When you buy a franchise, you will be required to provide a percentage of your revenues as royalties and might have to contribute to an advertising fund. These are the costs are meant essentially for the right to operate a system someone else has established.

Now, does this mean that it is without risk?

Definitely not! In fact, many make the mistake of understanding that franchising is less risky.

Regrettably, this might happen on buying a franchise that can be dangerous because franchise itself might not be the problem; but rather the expectations of the person who buys it.

In my franchise brokerage and consulting practice, I had worked with many aspiring business owners. One of the first things, we always address is the franchise concept of CAPITALIZATION. In a layman terms, this is the money that buys the business and funds operations as the business grows.

If you are planning to buy a franchise, or start your own business, you should always count on one thing that it might take LONGER to achieve your goals and it will most certainly COST more.

This is not a bad thing as it is a natural process that all business owners go through. You might make mistakes and have setbacks with certain challenges. This is all part of franchise business ownership. The key here is preparation and expectation. If you think you need 50,000 and budget is 100,000 dollars and if you think you need six months; then, plan for twelve or even eighteen. This will provide you with the proper planning to better you better for the success of the business.

About the Author

Find More Franchise Cost Articles

Is it really a stupidity to buy a franchise?

admin — Thu, 24 Nov 2011 06:22:13 +0000

Article by Sunshine Consulting

What if the scenario of franchise concept is run through you?

You pay a fee ranging from 20,000 to 40,000 dollars.

You sign a binding contract for 10 or more years, which require you to pay an ongoing percentage of your sales, have limited control of your processes and procedures and no guaranteed results.

Does this sound attractive? It might, particularly, if you depend on this venture to support your family, your lifestyle and also your income? Well that is what you get when you buy a franchise. While, it may seem crazy to some; there are certain advantages to this scenario, especially if you are a first time business owner.

The reason to this is mentioned below.

First and foremost, if you are a new franchise business owner; then, one of the biggest challenges is logistics. Forming your business entity, establishing a business plan and ordering your equipment is also a part of them. In addition, if you are retail based business owner, who needs to lease space; then, you have to find a suitable location, negotiate the lease, determine how to effectively build out your location and order the necessary equipment for your operation.

And let us not forget about marketing…

The lifeline of your business is getting to hear a phone ring with interested customer. There are thousands of ways to market a business and one of the biggest challenges is to determine which media works best and how to effectively market that said media.

When you buy a franchise, these are some of the things that should be already in place. The franchise concept model should have systems, processes, defined marketing pieces, a basic knowledge of when, where and HOW to open. They should have this in place, so you can essentially follow their steps, open in a timely manner and start your business on the RIGHT foot.

One should keep in mind the value of TIME. It is one commodity that we always need more, but cannot get much of it. That is one of the things you can save when you buy a franchise business. This can help you focus on your efforts for getting going, being more organized and staying in a better position for success.

While, there are advantages on buying a franchise; still, not all franchise consulting services systems work. In fact, it is estimated that only 30 percent of the 3000 Plus systems available are willing to disclose any sort of financial performance. With this in mind, it is very important to not make the assumption that just because you own a franchise, you are guaranteed success. In addition, buying a franchise is just like any other investment, which involves RISK. Even some of the most well known and successful franchise systems, such as Subway, Burger King and Dunkin Donuts have had their share of failures. You have to run the franchise business, follow the system and work hard just like any other business opportunity.

Franchising has its costs, which is slightly more expensive than starting out on your own. There are additional costs, restrictions, and royalties required. These essentially compensate the franchisor for the rights to operate a system that they developed. While it may seem unreasonable; if you have the right opportunity, it could be your best option for success.

About the Author

5 Ways to Choose the Right Franchise Opportunities for You

admin — Wed, 23 Nov 2011 21:24:17 +0000

Article by Bob Richman

Franchise opportunities are so numerous that it can be difficult to decide which franchise, and even which industry, to choose. Entrepreneurs can choose from among franchise opportunities as diverse as dog grooming stations and preschools. To help make the decision easier, there are five factors to consider when looking at the multitude of opportunities that exist.

The amount of time that you have to devote to your chosen franchise often the first consideration. While most business owners do wish to run a full-time business, there are many people who buy part-time franchises that can be run on the weekends. These often include party rental companies and other special-occasion businesses. Other options are carts or other mobile businesses that you can take out during the hours that you choose. If you don’t want to put at least 40 to 50 hours a week into a business, this will limit the pool of choices considerably.

The amount of money needed for the various franchise opportunities is obviously an enormous factor. While there may be some financing available, consider how much debt you want to be in when you start your new business. There are franchises available in virtually every price range, from very little to virtual fortunes. Choose the one that realistically fits your budget and comfort level.

The interest level that you have in each specific industry can also be a major driving force in your decision. If you dislike animals, opening a pet store will likely not be the choice that keeps you passionate about your business. Make a list of the interested you have and then look at what is available within those industries.

People who love to build models may run a hobby store with a lot more enthusiasm and enjoyment than they would a business about which they have no interest. If you’re still stuck for an idea, think about the stores that you like spending time in. Then, look for franchise opportunities that are similar to those stores.

Brand recognition is something that takes time in the current marketplace. Every business wants to make a name for itself, and getting heard in all of that noise can be difficult. However, a business that comes with significant brand name recognition already has some of your work done for you. It can also mean establishing your business faster because of the market that already knows what you do and why they want to do business with you.

The long-term favorability of the business idea is often extremely important when choosing from among franchise opportunities. If an idea is a very new one that has been catching on like wildfire, it’s possible that it’s a fad that will be pass

Think of a career change with a cleaning franchise from a number of cleaning services

admin — Wed, 23 Nov 2011 12:24:53 +0000

Article by Amy McKie

The recession has hit a number of people very hard in a number of different areas, as we are finding that the change in the economy has caused people to lose their jobs in a number of different types of business across different sectors. We are now seeing former managers of businesses working behind the tills of supermarkets as people are finding they have to take a significant pay cut to get back into the world of work and keep themselves afloat of costs they have accrued over time. This kind of move shows that nobody is safe from the long arm of economic decline and the effect it is having on businesses around the world.

If you find you have lost your job in the recession, you may find that you wish to find another job as soon as possible and actively seek the right opportunities on the market. You may however find that the recession has opened your eyes and given you context on your career and life in general, which may drive you to look for a career change which will give you more self-satisfaction within the new job. You may not be looking for a massive change and you may simply be looking for a less intense job which enables you to spend more time with family for example which you may not have been able to do previously. One option to consider would be purchasing a franchise to find you instant work in a field in which you may previously have been unfamiliar but may be no less attractive when it comes to looking for a new job role.

An example of an opportunity would be a cleaning franchise with a number of different cleaning companies which specialise in ensuring the home and offices around the country are clean and are ready to give the right impression to anyone entering the business on a daily basis. You can find that purchasing this kind of franchise gives you a number of options with flexible working hours and a constant customer base which is often established in advance for you. For a fee you can often purchase this kind of franchise which enables you to provide yourself with a worthwhile investment to help sustain a future for you and your family. Browse online to find the best options available to you when it comes to purchasing a cleaning franchise for you to get back on the employment ladder.

About the Author

Find a professional carpet cleaner online to see if they have a franchise option for you.

Franchise Opportunities for Seniors

admin — Wed, 23 Nov 2011 03:24:09 +0000

Article by Bob Richman

There are countless franchise opportunities for seniors that can create a fun and vibrant environment or a quiet and calm one, depending on the wishes of the senior business owner. Seniors who want a franchise that can be run part time can find exactly what they’re looking for, as can seniors who want full-time hours. Whether a seniors is most concerned with creativity, a calm work environment or civic mindedness, there are franchise opportunities for seniors that can provide it.

Ben and Jerry’s is an iconic ice cream franchise that makes premium ice cream in a number of interesting flavors. The company is known for its commitment to community and social responsibility. The founding philosophy of Ben and Jerry’s was that businesses should give back to the communities that patronize them, and that community-minded spirit is still a big part of the brand. Seniors who love getting involved with their communities may enjoy being a part of the Ben and Jerry’s company. An enthusiastic personality is one of the things that been and Jerry’s considers to be a vital part of owning a franchise. Seniors with that enthusiasm can use it to become successful with these franchise opportunities for seniors by selling unique ice cream from a trusted brand.

Color Me Mine is a business that gives people in the community an outlet for their creativity. These franchise opportunities for seniors are each upscale retail art studios that allow customers to choose a ceramic piece from 350 different styles. Then, the customers paint the piece to customize it and express their own artistic point of view. The ceramic item is left at the store for glazing and firing and the customer comes back to pick up the finished product. Any senior who has a creative background, as well as seniors who have always wanted to work in such an environment, have this opportunity to bring color and flair to their customers’ lives. These franchises are available to entrepreneurs in countries all over the world. Color Me Mine provides full-time training to new franchise owners to ensure that they understand how to make their businesses the best they can be.

Kumon Reading and Math Centers have a quiet, low-key environment that is conducive to study for the students who get academic help there. Kumon Reading and Math Centers provide tutoring in several subjects in order to help kids who need a little boost in their academic skills. The centers are run during after schools hours to fit perfectly into the schedules of students. Like other useful franchise opportunities for seniors, this franchise provides extensive training and support to business owners, and it provides a service that large numbers of families these days are interested in. Seniors who don’t want to run a 9 to 5 business may find that the reduced daily hours of this business are exactly what they are looking for. Seniors who have an academic background may be particularly interested in passing along that love for academics through their businesses.

About the Author

To view additional franchise opportunities and profiles for 1,500+ franchises for sale, please visit FranchiseGenius.com.

FranchiseGenius.com is a free, comprehensive franchise selection resource, with 1,500+ franchise opportunities summarized.

Find More Franchise Opportunities Articles

Choose Your Franchise Counsel Wisely

admin — Tue, 22 Nov 2011 00:22:53 +0000

Article by Sunshine Consulting

Once, I had a client that hired a patent attorney to negotiate a real estate lease in terms of franchise business. Now, I guess that my target audience is smart enough and does not require me to explain any further about the entire process of proceedings. Well, the question is that “Why did he do that?” He admitted his mistake honestly because he simply did not know anything better.

In the world of franchise concept , on the matter of buying franchise, the need for a qualified franchise attorney is essential that can make a world of difference in negotiating better deal, preparing the appropriate documentation and explain all the necessary requirements to get started.

In this direction, one should move cautiously because every attorney may not do well in representing your case, as he happens to predict.

I had a recent client, who was very much interested in buying a franchise. She hired a family attorney to review the documentation for her. The net result was that her counsel provided a 15 page bullet point synopsis of the FDD (Franchise Disclosure Document) and the franchise agreement for a fair charge of 2,000 dollars. It did not carry any sort of detailed analysis and no specialized advice was also provided on the matter.

Now, I would like to guide on the matter that what you should receive from your franchise concept attorney in term of advice, opinion and guidance. There are legal aspects to every transaction that are important; but there are also business aspects. The best attorneys, known to me, provide the appropriate balance between the two. And this is what you should expect from your attorney.

In addition, if you are looking forward to buy a franchise, I would HIGHLY recommend you to work with an attorney that specializes in franchise business law. While I have nothing against generalists, franchising is becoming increasingly specialized; I would like to be represented by someone, who only practices in the franchise industry. This is not different from having a patent lawyer to help you process an application for a patent. The question arises that would you go to a heart surgeon to replace a knee? The concept here is the same.

Lastly, one should take on his investment as a fee and not a particular sort of cost. I have had many clients looking to buy a franchise and not willing to invest more than 2,000 to 4,000 dollars because they perceive it to be too expensive. This seems to be based on the classic phrase called “penny wise and pound foolish” approach. On buying a franchise, you might be required to invest anywhere between 100,000 dollars and more. Now, the cost of good counsel is “de minimis” relative to your total investment. If you decide to avoid such expenditure; then, it might seem to be a stupid action. At times, these franchise business agreements can have very onerous provisions that can prove to be costly and unnecessary. A qualified franchise attorney can help reduce this liability and protect you from making an expensive mistake.

A franchise business investment can be a fun and rewarding experience. Despite some of the negative promotional stuff, you may find about the industry, there are many great models where one can be quite successful. If you are willing to buy a franchise, and are serious about making the investment; then, take the time to find a good franchise attorney and you would be glad with the provided results.

About the Author

The Qualities To Look For While Assessing Top Franchise Opportunities

admin — Mon, 21 Nov 2011 15:21:57 +0000

Article by Tim Bonderud

Many are looking for suitable means to earn a potential income. However, you should not make a decision hastily while thinking of joining a business or buying a franchise. Everyone is readily searching on the web as to which one among the top franchise opportunities should prove lucrative for them. The general tendency is to associate big brand names that show up on the first page of the search results as the top franchise opportunities. No doubt those companies have an incredible performance in the business domain, but what you need to find out is how it can help you.

When you judge a business franchise, you should see if the business opportunity has the potential to match up to your financial expectations. The initial start-up cost after you buy a business is something that discourages many people from finally settling on buying a franchise business. You also need to keep your finances arranged and ready to cover all costs that are required to run the business successfully. If you are equipped with good purchasing power and want to further strengthen your financial health, then you should consider all the top franchise opportunities. Since you possess the buying potential, it does not necessarily mean that you will invest your money without assessing which business opportunity will be the most suitable one for you.

Investing a huge amount of money for buying the franchise is not enough. Your responsibilities begin to increase when you become the owner of a franchise business managing the business activities. You have to shoulder all the responsibilities if you really want to see your business flourish. You have to devote time in framing the business strategies of how will you operate your business in a smooth manner. So you cannot afford to take any short-cut route to success and you have to spend a considerable amount of time to observe your business so it can grow in leaps and bounds. You cannot always expect to spend time with your family and friends as the business will be very demanding in the beginning.

Businessmen always look forward to recover the money they have invested within a short time span as well as gain some extra cash, which they consider profits. While probing the top franchise opportunities, it is important that you try and figure out its financial performance in specific years. The track record of an esteemed company providing top franchise opportunities will give you a clear picture of its financial performances. If you take a closer look at the figures it will tell you what you can expect from a respective business opportunity. You can gauge the time by which you can expect to get back the whooping amount that you invested initially. The time by which you can expect to make profit can also be successfully assessed by you. This will help you to have a fair idea of the time that is required for you to taste real success in business.

About the Author

Tim Bonderud is a top internet marketer who has a passion for helping others achieve their goals, dreams and aspirations. To learn more about finding Top Franchise Opportunities and see how easy it is to have an online business. Learn from Tim Bonderud and his team of Marketing Mentors !

Cost Management Facilitates in Achieving Business Results

admin — Mon, 21 Nov 2011 06:23:45 +0000

Article by Gres

Cost management plays an important role in framing the best policies and selecting the best operation for the success of business in modern times. It is said that cost accounts are the key to economy in manufacture and are essential for the intelligent and cost-effective management of a factory.

Managers need lots of information for taking some important decisions towards future plans of a business and cost management provides such information. Management and policy making of a big business are possible only on the basic of information and data which is easily provided by cost management franchises. Many businessmen do accept the importance of cost management but say “cost accounting is definitely useful for someone but my business is different.” Cost accounts are considered necessary for the efficient management of all the businesses. Information or inferences which are not given by financial accounts can easily be available by cost accounting. Thus cost management is an essential part of a sound business management.

Cost accounting is the basis of managerial decision-making. These accounts provide guidance to managers. These give a pre- indication of possible hardships and provide guidance to overcome the difficulties successfully. In the absence of cost accounting many industries have been found winding up their existence. Managers of the business enjoy many advantages if they use cost accounting some important ones are given below:

Control over Material: By cost accounting the purchase, storage and use of material can be controlled so as to minimize cost of materials as far as possible.

Control over Labor: Selection of workers, their training, working conditions and wages can be controlled so as to increase their efficiency and thus, more production can be had from less expenditure on labor.

Control over indirect expenses: There are so many expenses occurring in the organization which are not directly related to the production. Cost management exposes such expenses and help to keep in control.

Decision about purchasing a new plant: By comparing the relative profitability with the help of cost management, it can be decided whether to establish new plant or to continue with old one.

Helps in making other decisions about selling: Management has to take several decisions related to the sale of production. Which item should be produced in more quantity and which in less quantity? Which market should be paid more attention to and which is less? A cost management franchise makes it easier to take such decisions efficiently and easily.

About the Author

http://5thgradehomeworkhelpscience.blogspot.com/