Category Archives: Choosing a Franchise

Looking To Buy A Business This Holiday Season?

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With the holiday seasons approaching, millions of joyful people are searching high and low for gifts to give their loved ones. At the same time, most are thinking about ways to improve their lifestyles by making habitual changes or taking on new jobs.

While the above methods may indeed render positive change, its impacts are minimal in comparison to those gunning to start or buy a business by the end of the year. Franchises for sale can give its owners an excellent opportunity to become their own bosses, as well as generate hefty and stable incomes that’ll provide them with the means to make drastic lifestyle changes.

The thought of transitioning from employee to bona fide entrepreneur may be overwhelming, but franchisors have surefire methods for making such transformations significantly easier, and even a more enjoyable process. Though risks are involved with any sort of commercial venture, the systematic approaches taken by franchisors greatly minimizes these dangers.

However, an individual who immediately goes online in search of franchises for sale without having a solid idea on what he really wants or needs, will usually end up being overwhelmed by a plethora of options presented by different websites.

With that in mind, anyone looking to buy a business is advised to create an imaginary list (although it’d better if it were written on paper) of criteria he or she may be looking for in their dream business.

The number one criterion for identifying a suitable match would be passion – if the entrepreneur engages a trade that he loves, the years he spends in business will a whole lot more gratifying experience. Moreover, industry competitiveness should also be thought over thoroughly as well.

Some industries are saturated with other businesses competing amongst each other. While fighting back is possible, challenging those who’ve been there longer, as well as those who constantly evolve plus expand operations, will unquestionably be tough.

Other important factors an individual looking to buy a business should consider include the following: level of investment required to acquire a certain franchise, estimated operational expenses, operating hours/days, number of employees needed, business location type (home-based or traditional brick-and-mortar) and the expected income streams from operations.

By creating a list comprised of all items listed above, hopeful businessmen can now look at the different franchises for sale, and select one that best matches their personal preferences.

Finding The Ideal Franchise

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Learning how to start a business to make money that flows on autopilot can be unbelievably tough, and is something that not everyone can do. Fortunately, franchisors have worked hard for years to create adaptable and successful operating systems for their franchisees to follow so they too can achieve financial success.

While reaping the advantages of a business built around a thoroughly tested and perfected system is an alluring idea, carefully screening franchisors, and ultimately sticking to the best one, should be done beforehand.

With that said, here’s the first point to consider when picking a franchise: total acquisition costs and future operating expenditures. Some folks like to go for ones which they can cost-efficiently purchase and sustain, while others may opt to go for pricier variations that’ll probably require a bank loan.

For the latter, the British Franchise Association (bfa) recognizes three major banking organizations as specialists in financing loans for franchises, namely: Lloyds, HSBC and RBS/NatWest.

Second point for consideration is the franchisor’s bfa membership – in order for these businesses to become a member of this prestigious organization, they have to comply with rigorous criteria based on European Code of Ethics, operational procedures, and franchisor/franchisee practices.

To verify a franchisor’s bfa membership, potential franchisees are advised to check out the official bfa website online.

Third, we have the actual operation systems of targeted franchises – some systems are easy to learn and execute through training (rendered by franchisors,) thereby saving the franchisee from the burden of learning how to start a business to make money in consistently large amounts.

Also, seeing quite a number of franchises successfully operating for years is also a good sign that the system adopted by its franchisees is effective. Little to no branches closed on record can be reflective of a franchisor’s strength, reliability, and efficiency.

Fourth and probably the most important point to consider is the prospect business’s impacts on the owner’s lifestyle. Different franchises will require varying levels of owner commitment. Also, the actual trade itself has to be interesting for the future franchisee to keep engaged. For example: people into cars would definitely be happier running an automotive shop than operating an ice cream store.

By purchasing the right franchise, anyone can skip out on the painstaking process of learning how to start a business that’s engagingly fun, and can make money in bundles for years to come!

Determining A Franchise’s Income

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People putting up retailing businesses or purchasing automotive franchises have different reasons for doing so. Some folks do it because of their passion for automobiles, certain retail products, or a natural inclination towards engaging services within such industries. These types don’t mind if they make bundles of cash or not, so long as they get to do what they enjoy doing.

Others build these commercial establishments with hefty profits as their only motivator. Even if they aren’t into cars or retail services, the profits are more than enough to compensate for the perceived disadvantage.

Whether entrepreneurs actually like the trade, or are in it for financial rewards, the bottom line is to make money. People operating out of passion are admirable, but ultimately need to meet the business’s financial demands to keep running smoothly.

Franchisees need to know the potential income of their retail or automotive franchises to get a rough idea as to where they’ll be in the near or distant future. While hiring an accountant is the usual method used by franchise owners, especially those engaged in retailing businesses, the simple formula below can be used to help the entrepreneur do so without professional help.

With that said, the first step is to check the franchise disclosure document (FDD) for total royal payments to determine how much cash current franchisees are jointly paying the franchisor. This document is usually presented by the franchisor to prospective buyers of franchises during the pre-sale disclosure process.

Second step is to jot down the percentage of sales franchisees pay as royalties (commonly referred to as the royalty rate,) as well as the total number of full-time operating franchises recorded in the system.

Third step involves executing the actual formula: divide the total royalty payments by the total number of franchises. This in turn allows the franchise owner to compute the average royalty payment paid by each owner of all retail or automotive franchises.

Fourth and last step is to divide the average royalty payment per franchisee by the royalty rate. The final figure will reflect individual franchisees’ average gross sales.

This formula can be used by all franchise owners of automotive or retailing businesses to identify their potential income. However, it’s important to note that the actual success and possible income of any business doesn’t solely depend on franchisors’ operating systems, but on the management plus entrepreneurial skills of the franchisee as well. 

The Massive Potential Of Senior Care Franchises For Sale

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Anyone who doesn’t know how to start a business successfully, as well as the complicated steps to be taken to ensure its continued growth, has all the reasons in the world to buy a franchise for sale instead. After all, why should a person bother trying to create a formula for success when the best possible ones have already been created?

While there are many franchises available for sale today, many of these are mere “fads” that don’t guarantee long-term stability in the long-run. On the other hand, senior care franchises are some of the few which have the potential to generate loads of cash for owners, while guaranteeing continued business in the decades to come.

The biggest reason behind this is the fact that it targets the baby-boomer market – this market’s strength lies within its massive population of approximately 76 million individuals, all of who were born during the years 1946 and 1964.

Companies have been designing products and services which were meant to target this market, and enjoyed massive profits in the process. However, learning how to start a business that effectively taps this market will be time-consuming. Moreover, doing so wouldn’t guarantee the amount of proceeds that tested and proven business models reap.

Moving forward, a senior care franchise for sale, such as the Spectrum Home Services, Inc. is highly in demand by a large portion of the baby-boomer market, most of who are individuals are nearing or are at elderly ages.

This company offers non-medical care and home care services, wherein the latter is a highly sought-after commodity. Studies show that the majority of old people prefer or would rather spend the remainder of their years in the comforts of their own home. Comparing their rates to other rival companies in the industry, “Spectrum” unquestionably is a cost-effective alternative that offers great value for their client’s money.

Aside from being relatively more affordable as compared to its counterparts, Spectrum can render a range of services that isn’t typically included in the packages created by other competitors, such as the following: companionship, handyman, relocation help, and yard cleaning.

The benefits of acquiring this franchise for sale are bountiful, and are highlighted by thorough training at corporate headquarters, assistance from a Spectrum representative at the franchisee’s establishment for three to five days, and ongoing support regarding any concern throughout the duration of the business.

Considering the complexity of learning how to start a business in this industry, let alone keeping it alive, opting to purchase a reputable franchise such as Spectrum would be a much better choice.

Investigating before You Invest

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Investors who are interested in putting money into automotive franchises should first obtain a copy of the disclosure document of the franchisor. There is a franchise rule that is implemented by the FTC that states that the document must be given to the investor at least fourteen days prior to paying or signing a contract. It is the investor’s right to ask for this document before agreeing to anything. All retailing businesses have this document and the investor must read through the whole document beforehand. Sections that are usually included in a disclosure document consist of the following below:

• A franchisor’s background that states the period of time the franchise has been in business, along with competition, as well as other special laws related to the business, such as permit or license requirements.

• A business background that includes the heads of the franchise as well as a description of the experiences they have.

• A litigation history that states past litigation. It also discusses information on whether franchisees have been sued by franchisors in the past. For instance, if a franchisor sues a franchisee for not being able to pay royalties, this may very well be a sign that the franchise is not successful seeing as the franchisee is unable to make such payments.

• A bankruptcy section that indicates if the franchisor or its leaders have been a part of a bankruptcy, along with data that allows the investor to see the financial state of the franchisor.

• A section on ongoing and initial costs that explains the expenses involved in opening and running a franchise.

• A part on restrictions that indicates the limits, which could possibly minimize the investors say in operating the business.

• A portion on terminations that states the conditions that the franchisor may terminate a franchise based on the contract rules.

• A training section that dictates the assistance and training program of the franchisor and an advertising part that has details on advertising costs.

• A portion regarding former and current automotive franchises and also information on associations of retailing businesses or franchises that run similar establishments.

• A section on the sample size as well as the percentage and number of franchisees who showed earnings at the amount the franchisor has claimed.

• A financials section that includes average income, which actually doesn’t say very much on how separate franchisees perform. It also states gross sales that don’t say a lot regarding the actual profits or costs of automotive franchises. There is also information on net profits.

• A part on geographic relevance, as income varies with geography.

• A portion on the backgrounds of the franchisees of the other retailing businesses.

• A section regarding dependence on earnings claims wherein franchisors may ask investors to sign a document regarding receipt of financial representations while purchasing a franchise.

• Lastly, a financial history portion that provides details on the financial status of the company, as well as audited financial statements.

Advance Work: Before You Select a Franchise System

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Investors who want to buy a business or invest on a specific franchise system should first think about a number of things. Sure, there are many franchise opportunities around but careful thought has to put into picking one. Some of the things to consider include learning the amount of money that has to be invested into it, the abilities of the investor to run that particular business, and the goals. These factors need to be discussed truthfully to ensure that the investor is making the right business decision and to guarantee that he or she is getting into the right money making endeavor.

Before an investor decides to buy a business, there are several questions that need to be asked. For instance, how much is the amount of money that has to be invested? Also, how much money can the investor afford to lose? Is the investor a sole investor or does he or she have partners? Will there be a need for financing? If so, where is the financing going to come from? What is the credit rating of the investor? Does the investor have savings or extra earnings to survive while the business is just starting out? These are all questions that the investor should ask before getting into any sort of business endeavor.

Aside from the financial perspective, the abilities of the investor must also be considered while searching for franchise opportunities. For example, will the franchise require special training, or special education, or possibly even technical experience? This could be anything from tax preparation, car repairs, office and home decorating, or others. What particular skills can the investor contribute to the business, particularly to the franchise opportunity he or she is considering? What experience does the investor have working as a manager or even being a business owner? These are all things to consider for those planning to buy a business.

While browsing through the different franchise opportunities, the investor must also think about his or her goals. Jot down the reasons for purchasing a certain franchise. Is a particular annual income needed? Is there an interest with entering that certain industry? Is there an interest in retail or even doing a service? How many hours in a day can the investor put into this business? How long is the investor willing to work? Does the investor plan to run the business solo, or will he or she employ a manager? Is the franchise the main source of income for the investor or merely a supplementary?

Clearly there are so many things to think about and plenty of questions to answer before investing into a business venture like a franchise. The success of the business will depend on a number of factors, including the investor’s dedication to the endeavor.

Rising Popularity of Automotive Franchises

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The core advantage of acquiring a franchise for sale is the fact that its company name is usually trustworthy and well-known to the market it targets. An entrepreneur would be doing himself a huge favor by acquiring a winning franchise, as the time, money and effort needed to build a business from scratch plus establish a reputable brand name is massive.

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Murphy Business Franchise Opportunity

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Starting a business nowadays involves a lot of risk. For one, a prospective entrepreneur needs to be able to come up with a fool-proof business plan, find a place to start the business, and provide a capital to get things started. Since the market is unpredictable, not all business endeavours end up successful.

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