Category Archives: Choosing a Franchise

Business Franchise Information – What Do You Need To Know About Your Franchiser?

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The first bit of business franchise information you need to discover will be “Is franchising the best option for you?”

Your business can grow in many ways. First of all, there is organic growth – or that which comes as a result of market expansion or from eating into a rival’s market share. Another option is to grow inorganically, by way of acquisition of a rival business.

Growth can also be defined in terms of whether it is in the same line of business or in a related field. An example could be that of a fabric manufacturer either ramping up capacity to produce more textiles, or entering into the arena of ready made clothing.

Interestingly, a lot of businesses also step into an unrelated field – the motivation in many such cases is to better utilize existing resources. A lot of new businesses have germinated this way, when the owners find that they have spare space, people or infrastructure which can be leveraged in a new business. Lastly there is the option of franchising.

We’d advise you to collect enough business franchise information to make a decision with a lot of care. Don’t jump into a totally new business just so that you can keep your staff busy. Every franchise opportunity is different, and brings its own set of challenges. The makings of a good franchiser are discussed below:

Keenness to do business: This will be apparent right at the negotiation stage itself. If you find that the franchiser is laid back or complacent, you’re better off without them. For a franchisee to make money, it is essential that the franchiser act as the driving force. A non-responsive franchiser company is better left untouched.

Adequate support: Since you’re entering unknown territory, it is the franchiser responsibility to ensure that you are adequately equipped to run a successful unit. And that means providing adequate operational training to your staff, implementing a solid marketing and communication plan for the brand and advising you on how to run a profitable franchise business. In fact, some franchisers help with the real estate decision and financing requirements too.

Financial soundness: That’s a tell tale sign, if any. Make sure you go over the financial strength of the franchiser company in great detail. Every franchiser will sell you the success stories of other franchisees – while you may listen to that with interest, you must also ensure that the principal company is itself strong enough to stand . Don’t assume that there’s always a sound company behind a strong brand.

Past history: A rapidly growing franchiser company might brag about how they’ve grown in recent years. That’s a red flag for you – numerous sign-ups are usually accompanied by a number of break-ups. Check how many franchisees have left the business, and what happened to them. At the time of reviewing the terms of the franchise agreement, be sure to understand the implications of a separation. Some franchisers refund a part of the fee to the outgoing franchisee once they find a replacement. This is important business franchise information.

Attitude of other franchisees: That sums it all up. Be sure to speak with at least a couple of existing franchisees to get their perspective on what it is like to partner with the principal. If they seem satisfied on the support they receive, as well as the performance of their business, the opportunity is probably worth your consideration too.

It is essential to be armed with the above business franchise information before you invest a dollar into your new franchise business.

Franchise Opportunities for Small Entrepreneurs

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The growing industry of franchising has undeniably attracted a lot of small time entrepreneurs to start up with their own franchise opportunity in hope of being a success and gaining profits more than other business type owners. Buy franchise restaurants is one of the most common type of franchise being sought after by entrepreneurs in the present because of the high profit results and low capital or income costs affiliated with this kind of business model. Most restaurant chains have already expanded from places to places since some, if not most of them, believe that there is a need for them to open up and operate in certain locations to test and prove their credibility to their franchisees and on the other hand to try out new ideas, strategies and concepts. With all this growing demand for franchise opportunity, how would you know the right and accurate percentage of your company ownership?

Jim Greco, the former CEO of Sbarro and Bruegger’s said in a conference held in Four Season’s Hotel in Las Vegas that there are no magic nor exact percentage that business owners should expect when it comes to company ownership. A number of restaurant heads and executives joined together on the Franchise Finance and Growth Conference sponsored by their sister publication the Franchise Times to discuss the recent trends and changes in the restaurant industry.

Subscribing to a percentage rule is done mostly by systems that operate on their own with the belief that there is a need for them to operate 10 to 50 percent particularly when their buy franchise is growing in demand. However more and more restaurant franchisors like Applebee and Burger King have set down their locations in the past recent years compared to those successful ones that have been profitable and buying.

The CEO of Texas based Wingstop Charlie Morrison once said that holding to the percentage of unit ownership is not necessary, since franchisors need to keep in mind that enough locations is done to be able to understand the changing variable and demand of vast markets especially in a franchise opportunity. He says that when you are an owner you will know when you already achieved the right numbers. When you are an owner remember to keep in mind when you buy franchise to not mix franchise market with company because it creates problems and conflicts. Merging the two can give rise to competition for employees and locations that are not supposed to happen when approving for a franchisees new location. Looking for locations for company units is a much different thing as stated by Greco.

Things to Ponder Before Purchasing a Franchise

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Entering into the world of business comes with risks however franchising offers limited or calculated risks. Franchising made a name for many young and old entrepreneurs in the world of commerce and it has a lot of benefits to offer. One of the many benefits it can bring to a business is a national recognition of its brand, supported trainings, and unlimited management and marketing seminars. Starting a business is tricky but with a franchise opportunity, entrepreneurs are able to avoid problems normally faced by newbie’s.

There are different types of franchise and we frequently encounter the business format franchising. This type of franchising is like spoon feeding all the needed things the franchisee has to know about the business. The franchisor is in charge of supplying the blueprint of the following; building, marketing strategies and the entire process of its goods and services. In addition, it is the responsibility of the franchisor to endorse everything he knows about the business.

A franchise opportunity such as the business format franchising is simple; the franchisor is responsible in guiding the franchisee on how to set up the business which involves strategies in terms of advertising and other services that is beneficial for the business. Another type of franchise opportunity is the product and trade name franchise. This type of franchise are common in automobile dealership where widespread research and buying ability are provided to allow an entrepreneur to provide products that are not locally found in the area.

However, when you buy franchise it doesn’t only comes with a lot of advantages. It also comes with some things to consider such as paying for the business trademark, royalty and an up-front fee. Aside from these payments, one might need to spend a lot for the equipments needed to jump start the business. The most important part to consider when you buy franchise is the guidelines you have to follow set by the franchise owner. This is a legal agreement that you must consider before you buy franchise.

Before jumping on a decision, you must thoroughly research the things you need to know about the type of franchising you want. Each franchise agreement is different from the other so start harvesting information to give you enough knowledge about franchising. You can start checking on www.ftc.gov if you want to know more about federal regulations. If you want to read more about franchising, www.entremkt.com/ifa can provide you informative franchise books. Franchising is a sure fire way if you want to start your business on the right track, however you must be diligent enough to do your research and harvest the needed information before jumping into one.

Easy, Simple and Low Cost Franchise Start-up Options

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If you’re scouting to buy a franchise for the first time, starting small and simple is the way to go. Doing so will provide a platform where you can learn and experience the basics of managing a business which will come handy in the future especially for expansion plans.

Set a budget and look for options that require minimal overhead costs. There are plenty of choices in the market from auto glass repair to pet care and free publications. If you want a business requiring minimal assistance, start a franchise that provides cleaning services to commercial establishments.

Considered as among the fastest-growing franchises, a cleaning business will only need as low as $8,000 up to $30,000 of investment as reported by Entrepeneur.com. It is one of the easiest start-up available today and with more businesses outsourcing their cleaning needs, the industry is poised to experience an aggressive growth rate. While the opportunity is very promising, when you buy a franchise in this niche, remember to partner with companies that provide sufficient training and overall business support for smoother operation from the beginning.

Another industry to consider if you want to start a franchise with stability in mind is the auto glass repair and replacement niche. The growing number of car owners will give you a steady and stable demand and all you need is a startup investment between $9,000 and $30,000 for auto glass panels and repair tools. This type of business requires flexibility since you’ll be catering to wide customer range from businesses to residential clients.

If you have a keen interest on publishing, you may want to consider getting involved in a free publication or magazine business. Naturally, you’ll need experience in writing, editing, lay-outing and designing to get the business going. Selling ad space is crucial to the operation, either you do it or hire someone else for the post. To buy a franchise in this category, you’ll typically need to invest around $9,000 to $10,000. Make sure to choose an established brand to get you through the start-up phase as smoothly as possible.

The Pet Care Service industry has showed phenomenal growth in the past decade and projected to steadily increase in the coming years. Get involved in this industry and turn your passion for pets into a profitable business venture by starting a simple home-based pet care operation. From walking dogs to pet grooming, you’ll have plenty of clients to serve starting in your neighborhood. If you have $7,200 to $31,100, you can start a franchise offering in-home pet care and grooming services.

Home-based Franchise Opportunities

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Are you familiar with that dreadful feeling that creeps on you when the alarm goes off and it’s time to get up and prepare for work? If you want more flexibility in your schedule while working at home, home-based franchise brokering –is the perfect solution to your dilemma! This is the best franchise opportunity for people who feel constricted with the standard 9 to 5 job.
For instance, if consulting is your area of expertise, you serve clients by providing advice for a price. If you want are intent on having a full-grown business, staying at home may not be a good idea because it means that you won’t have access to capital or infrastructure that is required by your business expansion.
Through home based franchising, you can eliminate a lot of problems related to setting up your business. You will be spared from worrying about business strategies, infrastructure shortage or development plans for your business! Franchisors will be there to assist you in strategic and development planning for your business expansion. However, an initial investment would be necessary to get things moving. Needless to say, this implies that you need to be familiar with franchise brokering to enter the market place. On top of that, you need the trainings and the support required for this franchise opportunity.
There are innumerable opportunities for home-based franchises. You can kick-start your home-based franchise by choosing your field of expertise. You can venture into any area that you wish to. By building ties with the Internet Service Providers, you can provide internet services in your locality. You can take advantage of the current demand for professionals in consulting and training, venture into home improvements, launch your own holiday and cruise planning agency, choreograph wedding events, offer your advice in debt and mortgage planning and much more.
The greatest advantage about going for home-based franchising is that you won’t be a stickler to a fixed job schedule. You can work when you want to and leave without worrying about getting an incident report. This way, you can get the job done when you are most productive, find leisure when and where you wish while earning the same, or even greater monetary benefits from your franchise.
This home-based franchise opportunity is the perfect remedy for people who find working at home more advantageous. If your calling is to be an entrepreneur, entertaining home-based franchise brokering is the perfect way for a business to grow, expand, infiltrate the market and succeed despite the limitations on your ability to raise capital for your business expansion.

Key Factors That Will Help with Your Franchise Decision

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Starting a business is not a walk in the park. You may have the funds and entrepreneurial motivation but you need to consider other crucial factors before diving in and buy franchise. If you want your venture to bear financial rewards, you’ll need to know the business and industry you’re getting into.

The key is to take risk but a calculated one. You can do this by asking the franchisor the right questions. Or you can work with a franchise brokering firm to help you make an informed buying decision. As an aspiring entrepreneur, it is your responsibility to stay informed to minimize future mistakes and increase the potential of business success. Here are some key factors worth checking when looking into a franchise option:

1. Number of franchises and location
A great number of franchises usually suggest success while knowing the location will tell you if you have to deal with a nearby competition. Consider it a red flag if previous locations become company owned. This may mean that a franchisee did not renew the contract due to poor profit margins.

2. Training or assistance provision
Before you buy franchise, make sure that you have sufficient training provided by your franchisor. Some franchisors charge for assistance so it’s better to get this straight beforehand.

3. Initial and long-term costs and fees
Franchisors normally require an upfront fee and a certain percentage of your annual sales depending on the contract. In order to keep your finance in check, know if there are any royalties that you need to pay.

4. Relationship with other franchisees
One of the best ways to assess the franchise of your choice is to talk to current franchisees. If you talked with the right people, you’ll have a clearer and more accurate perspective about the pros and cons of running the business.

5. Federal Disclosure Document (FDD)
Any franchise brokering consultant would tell you that any franchisor is required by law to provide you FDD. This document will tell whether the franchisor has been involved in any litigation cases or lawsuits against company executives or anything about fraud or federal injunctions.

6. History of profitability
It is common business sense to inquire about past profitability before deciding to buy franchise. Looking at the company’s history of profit margins will tell about how the franchise is doing financially.

7. Franchise restrictions
Since this is not a start-up from scratch, there are going to be restrictions with how you operate the franchise in exchange for an established system that has been proven profitable.

Buying a franchise entails tremendous monetary returns if you fully know what you’re getting into. If you must work with a franchise brokering firm in order to understand the business then do so before you make a franchise decision.

How Important is Your Franchise’s Location?

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The state of Arizona is among the fastest growing locations in the US when it comes to starting business franchises such as retailing businesses. This is the reason why the Togo’s Eateries sandwich franchise in actively recruiting a number of franchisees in the Arizona area and other key states in the Western region.

The goal of Togo’s Eateries is to increase their number from the 250-unit franchise to 400 restaurants in the year 2015. The franchise is taking the first step to realize this goal by developing its three locations in the Maricopa County in Arizona.

According to Togo’s CEO and chairman Tony Gioia, the franchise company is ready to introduce their large made-to-order sandwiches to the areas of Tucson and Phoenix after the company’s fantastic growth in 2012 and its six quarters of fantastic store sales. Gioia stated that the company is searching for passionate and dedicated entrepreneurs who want to join the enterprise team and help the company grow regionally.

US Franchise Soon

Big Smoke Burger, a gourmet burger chain based in Toronto eyes an even larger expansion. The franchise company aims to establish their presence in the US. The chain is aiming to set up a total of 50 restaurants in the areas of Chicago and New York City. Franchisee Anthony Fauci has recently signed a deal to open and operate the first New York City franchise location.

The Ideal Location

Securing a franchise funding and establishing an excellent business plan are as important as choosing the right location. Locations can greatly affect the success of the franchise operation. According to the Franchise Help, careful analysis of a potential business franchise location should include the following: identifying the major franchise trends and calculating the expenses and costs of the location rent and utilities. Aside from these things, a franchisee should also consider several aspects of the business operation such as the zoning restrictions, opportunities for advertisements like billboards and off-premise signs, availability of parking spaces within or near the franchise store, and the proximity of the store to other franchisees or competitors.

Entrepreneurs and business franchisee owners should remember that strong competitions do not necessarily equate to an unsuccessful business operation. This is especially true if the brand of the franchise for sale is one that is popular and widely recognized.

Spending more time researching on the business franchise is important before any franchise expansion can be done, whether the region targeted is within a city, a state, or even outside the country.

Questions to Ask Before Making a Franchise Decision

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A franchise is an excellent way to capitalize your opportunities and exercise your skills in entrepreneurship. Before buying your own franchise, it is necessary to get familiar with the type of business you are interested in by coming up with the right questions for the franchisor such as the following:

1. How many franchises are there and where are they situated?

This provides you an idea if the area has other franchises such as automotive franchises that might put your business in direct competition. Knowing this will help you assess if the location is profitable or not.

2. Are training and assistance provided?

A number of franchisors provide assistance and training to new franchisees to start the business and have it running successfully. Sometimes the training is not free so better inquire if additional expenses would be needed.

3. What are the initial and long-term fees and costs?

Some franchisors charge upfront fee so you have to prepare for it before you start franchising. You need to have an appropriate fund to pay for additional fees and other expenses throughout the duration of the business. You also need to ask your franchisor regarding the royalties you have to settle, if there are any.

4. How are other franchisees treated?

Talk to other franchisees to learn the pros and cons of the franchise that you are interested in. They can provide you answers regarding the business instead of asking the franchisors who are more likely to sugarcoat everything.

5. What is FDD or Federal Disclosure Document?

Franchisors are required to provide FDD. The FDD contains the company’s litigation history, which lets you know if the franchisor has been involved in lawsuits or if the franchisor has filed for bankruptcy before. Knowing the franchisor’s financial competence and the risk that you have to face when you purchase the franchise is a big help.

6. What is the previous profitability of the franchise?

Analyze the franchise’s profit margins to know if the business is worth investing in or not. Seek a legal professional to analyze the franchise’s earnings so as not to be misled.

7. What are the restrictions?

When you buy a franchise you are expected to adhere to its restrictions. In most cases, you have to give up and sacrifice your business-oriented freedom and follow the established business model.

Starting your own franchise can be profitable however you need to operate by certain guidelines and rules, which can either help you or hurt your business. As a buyer, you need to spend more time researching on the franchises for sale prior to buying one and the questions provided can help you a lot.

Fast Food Can Be Healthy and Tastes Good

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Several franchises for sale which have recently emerged are exploring a new market niche: fast food offerings that are not only healthy but also taste delicious. And here they are and what they offer:

O’Naturals

The prime mover of this company is its founder and chairman, Gary Hirshberg, who is also president and CEO of Stonyfield Farm, a yogurt manufacturer. O’Naturals was established along the same philosophy that Stonyfield yogurts are being made, that is of solely using natural and organic ingredients. The ingredients in O’Naturals’ menu contain no preservatives or additives. They also don’t have artificial sweeteners, flavors, and coloring. In-store nutritional information is provided in all of O’Naturals fast food offerings.

Furthermore, selections for customers on restricted diets, e.g., gluten-free, dairy-free, low-carb, etc., are also highlighted. Patrons are informed on what their food contains as all of the ingredients for each menu are listed on cards at the line. The items in the O’Naturals’ menu include build-you-own-sandwich/salad, featured tossed salads/ flatbread, sandwiches, flatbread pizzas, a selection of Asian noodles, soups, natural fountain soda, and Stonyfield Farm organic smoothies. O’Naturals currently operates four company-owned stores inNew England. Two franchise opportunities are being finalized outside this region.

Salad Creations

This is one fast food franchise venture that has really taken off. Salad Creations already has nine locations inFlorida,Virginia,Ohio,Rhode Island, andMexico. One of these is company-owned store the rest are franchised stores. In these outlets, customers can create their own salad from a choice of over 40 ingredients consisting of farm fresh fruits, vegetables, newly sliced meats, cheeses, and more than 15 homemade salad dressings. Each customer’s order is prepared by specially trained salad chefs who can help customize the servings to each individual’s preference.

Blendz

Customization of salads or smoothies is also the growth driver for outlets under the Blendz Franchise System, Inc. The company’s founder, president and CEO, Matt Phipps says that they don’t claim their food as healthy but healthier, allowing customers the option to make it as healthy as they want. The choices in Blendz menu include not only create-your-own-salad with 15 different toppings and dressings each day, and choices of greens. Also in the list are featured salads, gourmet soups, fresh squeezed juices, and grilled Panini. Blendz has four company-owned locations and one franchised outlet. Another corporate store and two franchisees are also under development.

Franchise Opportunities in Naperville, Illinois

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Why bother learning how to start a business – that’s statistically doomed to fail – when buying a franchise instead would be a much safer and profitable investment? Franchisors (many, not all) have developed foolproof systems of operation for franchisees to follow in order to run their businesses in the most efficient, stress-free way imaginable; all the while ensuring that profits are maintained and gradually increased.

A diversity of these companies has created franchise opportunities for locals of Naperville, IL to start their very own enterprise today. Not only can such commercial establishments help people with little to no entrepreneurial know-how generate impressive streams of revenue over a long period of time, but they’ll also give them the chance to be something many of them have always been dreaming about: becoming their own bosses.

Franchises being offered in Naperville are designed to compete in various industries. Moreover, a large percentage of these franchisors are well-established brands that people across the country can easily identify, thereby giving a considerable advantage to their prospective future franchisees.

Experts feel that a couple of franchises that could prove to be lucrative businesses are Menchies and Title Boxing Gym. The former has established a solid customer base at the West Coast, and is currently expanding to the East today. An advantage that comes with this trendy yogurt shop is its affordability, making it one of those franchise opportunities ideal for those working with limited budgets.

Title Boxing Gym — as its name obviously suggests – offers consumers a diversity of services, amongst which includes its famous group fitness workout concept. Establishing this type of business today would make for a wise investment, as thousands within Naperville have likely included “getting a better physique” as part of their New Year’s Resolutions.

However, not much know about the current offerings being made by these corporations, and only find out when available territory has either become excessively saturated, or completely unavailable. That being said, it’s important to start doing research on the franchisors with only a few outlets – preferably around 30 to 50 — open within the area today.

Although franchise opportunities ideally allow its franchisees to skip out on the burdens of learning how to start a business from scratch, not all franchisors are guaranteed to succeed. Doing a background check on prospect franchisors, as well as their current franchisees, prior to making a purchasing decision is vital.