franchises for sale

Franchise Models For Less

I read an article from the Seattle Times this week about a Quiznos franchise that struggled for several weeks just to stay afloat after the owners disappeared. The manager and three employees stayed on with no pay in an attempt to salvage this sinking ship. Things got really bad when food vendors would no longer deliver on credit so the loyal employees were forced to pick up supplies, such as deli meat, from the local grocery store. See Article Here

Stories like this are not typical of franchise models, but, of course, nothing is completely flawless. Franchises are the hottest business model today because they provide a proven system and product that tend to produce very high rates of success. The downside typically comes from the high start-up fees. A typical brick and mortar franchise can run between $430,000 and $750,000 with the majority going to pay for the building, equipment, and supplies. Forty percent of this cost has to come from your own (non-borrowed) funds.

Not all franchises today are brick and mortar businesses, however. In fact, there are many service franchises that can be run from your home. Entrepreneur Magazine has released it’s spring title of “Be Your Own Boss: 231 Low-Cost Businesses You Can Start Today!” It’s packed with several franchises options that range from $2,200 to $50,000 in startup costs and require small ongoing royalty fees that average under 10%. A great web site for additional information on franchise options is www.franchise.com

If these start-up costs are still a little high, consider starting your own service business. There are several great ideas Dan gives in his audio Turning Your Passions into Profits. Also, stay tuned for “Business Ideas You Can Bootstrap For Under $500!” an e-book that will be available to all of our subscribers for FREE in a couple of weeks.

About the Author

Jonathan R Taylor is the author of The Coach’s Career Tips and Resources. He helps his clients Love Their Work! You can subscribe at http://www.careercalling.com/subscribe.htm.

Filed Under: Franchising Tagged With: franchise, franchise business opportunity, franchise directory, franchise for sale, franchise information, franchise opportunities, franchise opportunity, franchises, franchises for sale

Franchises – Success and You

Many people believe owning a franchise will make them rich, financially secure, and provide the life of their dreams. True, franchises have an extremely high success rate, and a very high satisfaction rate among their owners. But is that success guaranteed when you purchase a franchise? NO!

There are no guarantees in life, or in franchises. There are those occasions when franchises are not profitable, lose money, and close. Although most franchises provide a proven business system, not all OWNERS are proven.

Many enter into the franchise system, thinking all they have to do is come up with the money to get the business open, and it will run itself and they will make money. I don’t how many times I have had a prospective franchisee say to me, “I want a franchise that makes a lot of money”. Well, I have news for you, it’s hard work.

You have to WORK the system provided by the franchise. Many franchisees have impressive backgrounds and education, many from established positions with top companies. However, some have a difficult time doing “whatever it takes”, to run the business. Whether it be marketing or sales, to taking out the trash and cleaning the restrooms, nothing should be beneath you to keep your business operating and profitable.

If you want be a franchisee, accept the fact that you will have a “franchisor” guiding and directing you. They have at much at stake as you, and their reputation is on the line. Remember your success is their success, so they will provide feedback, support, and direction with your business. However, some new franchisees, coming from corporate positions, may feel they don’t need any direction and know best on how to run the business. This can be disastrous. The better franchises have spent years developing their systems, FOLLOW THEM!.

Learn every job and every position of your business. Be able to step in and help when needed. Be ready when employees quit, don’t show, or simply think you can’t manage without them. I can tell you from personal experience, all these things happen. The last thing you want is one of your employees having an upper hand with YOUR BUSINESS, because you can’t do their job.

Be able to accept the fact that you don’t “know it all”, regardless of your past experiences and expertise. Listen to your franchisor and other franchisees. It is your business, but they have been doing it longer. Utilize their knowledge and expertise. The wrong attitude coupled with a few bad decisions may jeopardize your investment and your dream.

Remember, the one major variable in a franchises success is you. A franchise can be a very rewarding and profitable business when operated the right way, by the RIGHT PERSON!

About the Author:

Ernie Horning is a Franchise Consultant and owns multiple businesses. He is also a former franchise owner, and writes articles for http://www.businessventureinc.com (Copyright 2005-ehbvi-www.businessventureinc.com)

Filed Under: Franchising Tagged With: california franchise tax board, dem franchise boys, franchise, franchise business opportunity, franchise directory, franchise for sale, franchise information, franchise opportunities, franchise opportunity, franchises, franchises for sale, starbucks franc

How To Choose A Franchise

You’d like to go into business for yourself, and believe that the best way for you to become your own boss is to buy a franchise. You know it will takes time and money to be successful, and that’s OK. But which franchise should you buy? Which makes the most sense for you?

Here are some criteria that can help you make your decision:

1. What products or services would you enjoy selling?

What industries do you like, or dislike? Your best bet is to find a franchise in an industry you know at least a little bit about. All too typical is the case of the Chicago car salesman who decided to change careers and go into business for himself. He bought a basement waterproofing franchise but then found the business boring. He wanted to sell it, but sales weren’t as high as he had expected they would be and he had trouble finding a buyer. He was stuck paying off the franchise fee and working at a business he didn’t enjoy.

2. How much money do you have available to invest?

The amount of money you have available to invest in a franchise is an important factor. If you’ve only got $30,000 and the minimum investment for a specific franchise opportunity is $90,000, the opportunity isn’t going to be right for you, no matter how much you like the company.

3. What’s the total cost of purchase?

The franchise fee won’t be your only expense. Find out what you can expect to pay for advertising, training, inventory, insurance, and all other costs in addition to the franchise fee and royalties.

4. How well established is the franchise?

How long has the franchise been in existence? Have they been in business for many years or are they brand-new? How many other franchises have they opened and where are they located?

5. How stable is the franchise?

What is the background of its officers? (Any history of litigation or bankruptcy of the franchise or its officers is supposed to be included in the disclosure document.)

6. What kind of track record does the franchise have?

Have most of their franchisees been successful? Names and addresses of franchisees in your state should be provided before you sign any contract. Call the people on the list and ask about their experiences.

7. What training is available?

Ask what training and support will be provided as part of your franchise fee. Will you get step-by-step instructions and hands-on training? What kinds of manuals and other materials will you get?

8. How close to your store can the franchisor let another franchisee set up shop?

9. Will you be required to purchase supplies or products from the parent company?

If so, compare your cost to the local retail prices of the same goods. There have been instances where the price from the franchise company for goods was higher than the price of the same goods in local retail stores. Selling anything under such conditions would be quite difficult.

10. What do the contract terms say about ownership? Can you sell out to someone else if you wish?

If you want to continue when the contract expires, will it be automatically renewed? Will you be able to convert your store into an independent operation if you should want to?

11. Determine how disputes will be handled should they arise. Watch for clauses requiring arbitration in the franchisor’s home state if it is different than yours. Should a dispute arise, you’d have to travel to that state for arbitration hearings.

12. What criteria does the franchise use in selecting franchisees? Do they do any screening? Or, do they seem more interested in getting your franchise fee?

13. Does the franchise use high-pressure sales techniques to get you to sign on the dotted line?

14. Do you like the people you are dealing with?

15. How big is the market for the franchise’s products or services in your area and how much competition is there now?

About the Author

Janet Attard is the author of The Home Office and Small Business Answer Book. Find additional practical tips on choosing and buying a franchise at http://www.franchisetrade.com.