As many first-time business owners find out, there is a high failure rate for independent, non-franchise businesses. Franchising provides a proven system and the support of a much larger organization. If you are first-time business owner... more



The Advantages and Disadvantages to Starting a Franchise Explained!
Posted by: Admin Post on March 9, 2010
Author: Charlie Scott

Starting a franchise can be a great way to start your own business. It is worth bearing in mind though that as with any type of new venture there are some advantages and disadvantages which you need to be aware of.

Before you com... more



Going Green Produces Savings for Your Franchise
Posted by: Admin Post on March 9, 2010
Author: Eric Haley

The green movement has brought about many changes in the way people live, conduct business and understand the world. A growing demographic is taking measures to evaluate their lifestyles and their impact on the planet, from the products ... more



Franchises: Ready-made Businesses Have Appeal in Down Economy
Posted by: Admin Post on March 8, 2010
Author: MCCLATCHY NEWSPAPERS

After being unemployed for a year, Pauline Hamian ditched the résumé and bought herself a job. The former Burger King employee had no luck finding a job after being part of a corporate restructuring in 2008.

While a... more



How to Achieve Franchise Financing Success in Canada
Posted by: Admin Post on March 8, 2010
Author: Stan Prokop

Franchise financing is an integral part of the Canadian entrepreneur's challenge of obtaining and building a success Canadian franchise. As most Canadian business owners quickly discover, franchisors do not provide direct or indirect fi... more



Exploring The Franchise Option
Posted by: Admin Post on March 6, 2010
Author: Ford R. Myers

In today’s challenging economy, many people feel that they have lost a sense of control over their careers. Widespread corporate layoffs and downsizings have made the job market a tenuous environment in which to build a solid futur... more



Pizza Franchise Study
Posted by: Admin Post on March 6, 2010
Author: Franchise Direct

This report gives a brief overview of the US pizza industry and outlines the costs and fees associated with a typical pizza franchise. The data contained in this report was drawn from the Franchise Disclosure Documents (FDD), formerly kn... more



How to Achieve Franchise Financing Success in Canada
Posted by: Admin Post on March 5, 2010
Author: Stan Prokop

Franchise financing is an integral part of the Canadian entrepreneur's challenge of obtaining and building a success Canadian franchise. As most Canadian business owners quickly discover, franchisors do not provide direct or indirect fin... more



Start a Franchise Business - Difference Between Success And Failure
Posted by: Admin Post on March 4, 2010
Author: Smart Entrepreneur

Want start a franchise business but don’t know where to begin? This is a big decision for any entrepreneur and a lot of thought and planning must go into it. You need to consider several factors before you start a franchise busines... more



Why Franchisees Buy Franchises
Posted by: Admin Post on March 4, 2010
Author: Jason Gehrke

Research by the Franchise Advisory Centre indicates there are several key motivating factors for the decision to buy a franchise. While most of these factors will be present for different people’s decisions, the relative importance... more



Is Franchising For You?
Posted by: Admin Post on March 4, 2010
Author: World Franchising

Before you buy your own franchise, there are two critical tests you have to pass:

1. Personal Inventory: Are You the Ideal Franchisee?

The most important test you must pass is a self-examination of your characteristics an... more



10 Reasons to Purchase a Franchise
Posted by: Admin Post on March 3, 2010
Author: Carrie Bach

It’s too risky. I don’t have the capital. People might not buy my product. I don’t know the first thing about running a business. Yes, excuses proliferate. And with the economy the way it’s been for the last year, forget about it.

That’s why it’s nice to have help, and there’s probably no bigger source for startup help than a well-chosen franchisor.

Franchising is when someone uses another person's idea or business formula to start their own business.

The person selling the franchise namely the franchisor grants the independent operator namely the franchisee to copy and distribute its products and use its trademarks and name in return for a percentage or royalty payment of the gross monthly /yearly sales.

The idea of a microfranchise originated at Brigham Young University, Utah, in the USA. BYU’s Marriott School defines a microfranchise as small businesses that can easily be replicated by following proven marketing and operational concepts. The overall objective of MicroFranchising is to promote economic development by developing sound business models that can be replicated by entrepreneurs at the base of...

Just as every franchisee needs a qualified franchise attorney, it is also important that prospective and current franchisees have an accountant on their franchise team; that is, an accountant who specializes and has experience in franchising.

James Layton, CPA, CFE, and director of Systems Support & Development for top accounting firm Fiducial, says that most franchisees are...

Q: I'm currently looking at several opportunities. Some are franchises and some are business opportunities. Can you tell me the difference?

A: Telling the difference between a franchise and a business opportunity can get very confusing sometimes. But knowing the difference is important to understand before you sign on the dotted line.

Q: I am considering either buying a business or starting my own, so I'm in the process of researching different opportunities. A friend suggested I look into purchasing a franchise. What are the advantages and disadvantages of buying a franchise verses starting a stand-alone business? Wouldn't starting my own business give me more control?

The franchise business has been around a long time; in fact they go back as far as the 1850’s. The notion of selling off a business or a part of a business in order to expand into new areas usually came from the lack of investment funds from the business owner.

While the business of franchising has grown over the years it all had to start somewhere. The concept of franchise businesses started...

Here is a sample of frequently asked questions answered by the CFA. See the Canadian Franchise Association for the full list.

What is a franchise?
Franchising is a business relationship where a franchisor (a company or individual who owns the franchise system) grants a licence to a franchisee (a company or person who contracts to use the franchise system) the right to use the franchisor's trademark, brand, operating...

Personal Liability and Obligations of Franchisee and Family Members

What entities and/or individuals will be responsible for performance of various obligations under the contract? If the franchisee is a corporation, will a personal guarantee be required, and if so, what obligations are covered? If the franchisee will execute the contract as an individual, does he or she have the right to assign the franchise to a corporation that he or she owns?

Becoming a franchisee is a commitment that you will likely be making for the long run. Therefore you will want to be certain that you make the most logical choice that you possibly can. In order to do this, there are some questions that you should ask yourself while choosing the type of franchise that is best suited to you.

1. Summarize your credentials
If you haven’t already, compile...

Franchising is a huge and growing part of the nation's economy. More than 300,000 franchised small businesses operating in the United States account for an estimated $1 trillion worth of income each year and provide jobs for some eight million Americans. Franchising has also entered the Internet era.

The franchising phenomenon is not limited to the United States. In England, for example, franchising is one of the fastest growing sectors of the economy.

How to Choose the Right Financing Option to Meet Your Goals

If you've decided that franchise or business ownership is in your future but you don't have enough available cash, or liquid capital as it is often called, now is a great time to explore your financing options. Learn more about the various types of financing that are available to you. Once you've learned about the wide variety of financing programs that are available and decided which...

The term “Franchising” has always had a very specific meaning and referred to a defined business model. When doing a recent article on franchising in the service industry, I noticed that it was an excellent illustration of the metamorphosis of the traditional franchise model. That traditional model; initial fee, royalties and advertising fees, just isn’t the standard anymore. The model has become very flexible and...

Financial

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 resources required to buy a franchise? If not, where are you going to get the capital?

There are a number of reasons to go into business for yourself. Maybe you are intrigued by the challenge of the entrepreneurship or maybe you want to get rid of the mundane routine of working for someone else. Nevertheless, the key to run a money-spinning business depends on the choosing the business opportunity that is right for you! In today's competitive world a number of businesses venture fail, fortunately the business franchise offers great opportunities for everyone be it the beginners or be it the seasoned business men.

Franchising commands a staggering 43% of the nation’s total retail sales and service dollars. It is an employment engine on fire, and produces wealth right through economic decline. You don’t need an MBA to succeed, and everyone is in it together to win. Franchising is the profitable muscle machine that plows through challenge and persistently produces success. And, it consistently achieves record growth across the nation and around the world.

If you’re intrigued by companies that are emerging as leaders in fast-growing industries like the green movement then you’ll be interested in learning about innovative franchise opportunities that let you tap into some of the hottest industries. Earth-friendly franchises, for example, cater to the growing interest in protecting the environment and provide you with the opportunity to own an in-demand, eco-conscious business.

How do you find a franchise with great returns?

A wise investor, whether he puts money in the stock market or real estate or even collectible figurines, always considers the return he can expect on his investment. This should also be true of franchise investments. Those investigating franchise opportunities should look carefully at the company’s potential ROI.

The first year of business poses many challenges, even for the most experienced of entrepreneurs. In buying a franchise however, one would assume it would be easy, after all, you have bought a system with standards and procedures in place designed specifically for the franchisee to follow so it should be a breeze right? Wrong! Like any first year of business there are many challenges to overcome.

"You know it's on their list somewhere after Wyoming, Alaska ... Canada," says Larry Weinberg, a Toronto franchise lawyer who recently co-chaired the American Bar Association's Annual Forum on Franchising in Toronto.

A trend appears to be emerging among U.S.-based franchisors to target the Canadian market first for international expansion. A slow-to-recover U.S. economy, combined with Canada's relative strength during the recession, seems to be luring franchise operators to Canada.

It's easy for an executive to say he is franchise focused, as Nigel Travis, CEO of Dunkin' Brands, told QSRweb.com in a story posted Monday. How franchisees perceive that focus can be another matter.

But Travis is living up to that statement, at least from the point of view of franchisees represented by the Dunkin' Donuts Independent Franchise Owners organization.

If a person is looking to start their own company and they're not sure what they want to do or they don't have a lot of experience, they should look into buying a franchise. A franchise is when an existing company (the franchisor) sells the rights to distribute its products, techniques, and trademarks to another person for a percentage of the gross sales.

Wondering if you should buy a franchise? Here are 7 reasons that should prove to you why franchising is a good investment:

Quickest Way to Own a Business
Other business ventures take a lot of planning, preparation, and time until you can fully implement your operations. But with franchising, you can have your own business in just a couple of months. You won't even have to exert too much effort because everything is already laid out for you.

Legal Documents Required of Franchisors

There are two official documents that a franchisor may use to comply with the FTC Rule-- the FTC Disclosure Document (FTC Document) and the Uniform Franchise Offering Circular (UFOC). The FTC document does not meet the requirements of most state disclosure laws, whereas the UFOC is accepted (with minor differences) in all states with franchise disclosure laws.

Investing in your own business can be one of the most critical decisions one will ever make. The challenges are enormous physically and emotionally. Even finalizing a decision to own one's own business is daunting in itself. Many budding entrepreneurs cop out early into the decision making process.

10 Advantages of Buying a Franchise

1) A Springboard to Entrepreneurship

Buying a franchise allows you to become an entrepreneur in less time, limiting the multiple barriers first-time business owners would face. Essentially, you are buying a “business in a box” – a turnkey operation that has been designed, tested, and proven by a team of industry experts.

Have you ever dreamt of owning your own business? Of course you have, it is something that many people would love to be able to do but in most cases this dream is clouded by the “what if” question - “what if it fails?”. The fear of failing prevents so many would-be entrepreneurs from taking the plunge. But is this warranted? Well, it’s sad to say but yes, statistically it is warranted - Up to 50% of new businesses fail within the first 2 years of trading.

As a franchise sales consultant and an individual who grew up with a franchise business (my family owned a Dunkin Donuts for over 2 decades) I am often asked what type of franchise business I would personally recommend to buy. Although all franchise business categories have their inherent advantages and disadvantages, my personal preference would be to buy a service related franchise concept for a number of reasons.

Are you entirely happy with your job?
A poll of more than 2,800 employees in the UK carried out for online learning provider SkillSoft has found that two-thirds go to work wishing they were doing something else!

As well as this, 6 out of 10 of these people are checking job listings and recruitment websites while at work, with half of them having their details registered with a recruitment agency, headhunter or online job service.

You should always know what you are getting into and this is a big must especially if you are thinking of signing that franchise agreement.  A mistake here or lack of foresight on your part would definitely cost you more than your last divorce.  So before you tie that knot, read between the fine lines and make sure to understand and adhere to everything written on the contract.

Even after one has made the initial decision to buy into a franchise opportunity, there is an endless checklist of things to consider before choosing ‘the right one.´

Recognized franchise expert and President of Finance and Development of Wireless Toyz; one of the country´s fastest growing companies; Richard Simtob recommends a cold, hard look at every one of his top 10 franchise selection criteria before making the leap.

Although the 2010 outlook calls for little industry growth, franchising remains popular. Experts say, however, that numerous factors must be considered in picking the right franchise to buy.

Bob Purvin, chairman and CEO of the American Association of Franchisees and Dealers in San Diego, says franchising can be a lucrative investment for those who do their homework.

CHICAGO (AdAge.com) -- Take your average seven-figure CEO and add a load of the company's dirty laundry. Put him in a funny suit while he meets some of his best frontline workers -- and screws up their jobs. At the end, he can give them raises, and address problems exposed along the way.

It's a classic redemption story -- the kind American TV viewers love -- and the premise for CBS's surprise hit "Undercover Boss," which scored 38 million viewers after the Super Bowl.

For an in-depth description of the word "franchising", a quick visit to 'The Wiki', is an order. But to many, when the idea pops into the head, there is a common thread: McDonald's! Yes, McDonald's is among the world's largest and most popular of franchises, with a daily customer base of around 47 million in over 31,000 stores. So how does one with enough capital and ambition get a piece of the action? Create and market their own version of the Egg McMuffin... uh, no!

CHICAGO (Reuters.com) - If you've ever envisioned yourself slinging hash or pouring coffee in your own restaurant, your dream just got a lot cheaper.

With revenues flowing more like molasses than water, franchisors are slashing fees in an attempt to entice would-be entrepreneurs to ditch their cubicles and strike out on their own.

With a new year approaching, now is an ideal time to reevaluate your future goals and aspirations. If the economic climate has put you in a holding pattern and you’re determined to make 2010 the year that you turn your hopes and dreams into action, then consider becoming your own boss. Franchise ownership enables you to get into business in a relatively brief period of time with an established concept that features a well-known brand and a proven business system.

If you have set your heart on that particular brand or product, then consider obtaining that business franchise. Though focus and determination is the key factors to the start up or expansion of any successful business plan, it is important to analyze the factors and the workings before taking the plunge.

If you were trying an aerial trapeze stunt for the first time, would you do it without a net and safety harness?  Probably not because chances are very good that you would fall. The same holds true for business ownership. If you’ve never been your own boss, doing it alone could be difficult, scary, and full of the unknown.

Going into the franchise business might be a very good idea for you as it is one of the popular methods of doing business today but when you do a search of the available franchise opportunities, choosing one among the hundreds might be a daunting task.

Franchising involves an almost symbiotic relationship between the franchisee and the franchisor.  The franchisee provides expansion, additional profit and increased brand recognition while the franchisor provides the basic know how, brand name, supply chain, and continuing support for the franchisee.  To pay for this instant business, the franchisee shells out an up front fee or a franchise fee for the use of the business system and the brand name.

Have you always wanted to start your own business but you didn't think you had the money? It is true, starting a business can involve a large capital investment; however, there are other ways to go into business without spending everything you have. There are a number of cheap franchises that require little money to start, and some will even provide financing with a down payment. There are several industries that are ideally suited for cheap franchises.

Franchising research is a dangerous business for potential Franchisees. The Franchisor can hold all the cards, unless you see the relationship for what it is!

Here are 4 tips that new Franchisees should follow when talking to possible franchise owners. Ignore these at your peril, but take them into account and you and the Franchisor can have discussions with the deck not stacked against you.

Like any other investment, purchasing a franchise is a risk. When selecting a franchise, carefully consider a number of factors, such as the demand for the products or services, likely competition, the franchisor's background, and the level of support you will receive.

Demand

Is there a demand for the franchisor's products or services in your community? Is the demand seasonal?

Industry Breakdown

So why should I be interested in franchising anyway?

The International Franchise Association (IFA) estimated that product and trade name franchising accounted for $554 billion in sales in 1992. This represents roughly 28% of all retail sales.

People decide to buy a franchise for several reasons. Franchises offer an established brand name and relatively easy access into a specific industry. Many companies that sell franchises will also help the owner along the way by providing franchise related training, money, or clients. This gives the franchise owner an obvious advantage over the average small business owner who must work by themselves to establish their business, name, brand, and product.

Jobs are still scarce, so the unemployed are reinventing themselves and becoming the majority of new franchise owners, industry sources say. The troubles in commercial real estate are making it easier by driving some landlords to negotiate — sometimes offering several months' free rent or paying for remodeling.

Living With Chains
For entrepreneurs looking to buy a franchise, here's one thing to prepare for: culture shock.

There are entrepreneurs. And there are franchisees. And they aren't necessarily the same thing.

In a sputtering economy and without any experience running a retail operation, Chris Parker is excited about prospects as he plans to open two more Sport Clips hair salons over the next two years.

His first Sport Clips franchise on the near North Side is making an operating profit after opening just more than a year ago and he anticipates double-digit growth this year, Parker said.

When considering the purchase of a franchise, it is important for prospective franchisees to understand the Franchise Disclosure Document (FDD) provided by the franchisor. The disclosure document provides all relevant information about the company including a history and overview of employees, as well as the franchise agreement which outlines...

You want to own a franchise, but you don’t know which ones are available and which one would be right for you.  The big question is: how do you ?

There are many places that advertise franchises for sale:

Want to buy a franchise opportunity? Great idea! Here is a high-level overview on what to look for:

Operating History – A long history of success is the #1 thing to look for. If many other franchisees have been successful over the years, your chances are probably pretty good that you will be successful too.

Investing in your own business can be one of the most critical decisions one will ever make. The challenges are enormous physically and emotionally. Even finalizing a decision to own one's own business is daunting in itself. Many budding entrepreneurs cop out early into the decision making process.

One of the greatest decisions of any entrepreneur is in the choice of franchise that you buy in to. Therefore, there is a lot of planning and researching that needs to go into the process before deciding on a final franchise.

You need to have goals to work towards. For example, think about why you want to start a business and what you expect to get out of it.

So, you want to own a franchise...

Before you buy your own franchise, there are two critical tests you have to pass:

1. Personal Inventory: Are You the Ideal Franchisee?
The most important test you must pass is a self-examination of your characteristics and desires, and whether or not they are compatible with franchising.

If you're thinking of starting your own business, you probably realize the risks and huge undertaking ahead. Once you've decided what type of business, you'll also need to decide how you will start. There are two possibilities:

1. You can start your own business from scratch.
2. You can buy a franchise of an already established business.

Franchise Business Buyer's Guide

- A great question to ask franchisors: "What traits do your most successful franchisees share?"

- Any franchisor who guarantees specific returns or asks for cash up front is breaking the law. Move on to your next prospect.

Today customers have access to greater amounts of information, faster than ever before. With pervasive social-media tools like Facebook and the current trend of “video snacking” with Web sites like YouTube.com , brand   managers are met with an ever-increasing number of threats to maintaining their brand’s image and credibility. This is particularly challenging for franchising companies.

The availability of information about franchises for sale on the internet has taken some of the wind out of the sails of franchise exhibitions worldwide, but cannot replace the person-to-person contact where sellers and potential franchise buyers can meet and interact on the spot.

Most franchise exhibitions also include a seminar program, held in parallel with the expo, so that visitors can learn about specific topics of interest in a structured format.

In addition to the many questions that you should pose to a potential Franchisor, and the many questions they should pose to you, there are several other considerations for you to determine your compatibility with a particular Franchise system. If you are going to be getting into business with someone with the goal of creating an outstanding future together, you should cover more bases than just the basic questions to understand how the business makes money.

Franchise industry regulation varies from state to state, and you should therefore do some extensive research into the laws that apply in your state. What is considered franchising by your state? What documentation does your state require of franchisors to help protect you?

"Traditional marketing says fill a need and you'll be successful. America has a huge need to eat healthy and no one's filling that need in the fast food market... not really." So says Jaynie Smith, author of Creating Competitive Advantage and president of Smart Advantage, Inc.

Smith is right about the huge need for Americans to eat healthy: According to the National Center for Health Statistics, 66.5 percent of adults are overweight or obese; 32 percent of adults obese.

The franchise industry consists of two main components:

1. Product and Trade Name Franchising
Product and trade name franchising includes automotive and truck dealers, soft drink bottlers, and gasoline service stations. These franchises are essentialy distributorships and as a group, they are far larger than the participants of business format franchising. Our site does not focus on this franchise form and instead, devotes much of its attention to business format franchising.

The franchise sector is expected to add about 36,000 jobs this year after shedding more than 400,000 last year, according to a forecast released by the International Franchise Association, based in Washington. It represents about 1,300 franchisors and 12,000 franchisees.

The recovery would be stronger if loans were easier to get, according to the association.

When you buy a franchise, you often can sell goods and services that have instant name recognition, and get training and support that can help you succeed. But purchasing a franchise is like every other investment: there’s no guarantee of success.

How do franchises work?

Well, franchises work but the problem is most people don't really know how much work they take and how much effort they really need to put in to make their franchises produce REAL profits right off the bat.

There are many different options when it comes to franchising but I'm going to hone in on the 2 most popular today.

The biggest issue new businesses confront has little to do with permits, time organization, or merely obtaining clients. Rather, one of the most substantial obstacle is often a tight budget. Restricted cash flow seems to have hampered the success of uncounted franchise founders. Moreover, given the tightfisted approach banks are taking to extending credit, securing loans is becoming more difficult than ever.

The benefits of franchising as a means of expanding a business are twofold. One, it involves low capital investment by the franchisor as the capital used to expand the network comes from franchisees. Two, by franchising the business, the franchisor places the expansion of his/her business in the hands of people who are motivated to make it work.

Franchising 101

Although franchising’s largest and most popular brands represent the images most people hold about the industry, recent research revealed that franchising has been significantly influenced by the growing number of new concepts appearing in the past few years. One-fourth of those had 10 or fewer units.

Buying a franchise is a major investment. You should expect to draw on almost all of your financial resources and/or take on additional lines of credit. Before start talking to franchisors, have these questions answered:

-What is your net worth? How much of that is liquid (accessible cash)?

-How much can you afford to lose? (Remember - nothing is guaranteed.)

Are your chances for franchise success better with a large, well-known franchise than with a small company that's only recently begun to franchise its concept?

Although logic suggests that a well-established franchise with many locations would be the safest choice, brand name and number of locations doesn't guarantee success.

There are many advantages to opening up a franchise versus an independent store. But there are some disadvantages, as well.

When it comes to owning a small business, not everyone goes the route of starting up their own mom-and-pop shop. In fact, if a hopeful entrepreneur has no clue how to write a business plan and likes the idea of having a bigger “parent” company at their backs, opening a franchise might be the better option.

Franchises are making gains on independents, especially restaurants. By 2013, franchise eateries -- fast food outlets, family sit-down places, etc. -- will outnumber all others.

From 2000 to 2008, the number of franchise restaurants grew by 20%, while the number of nonfranchise restaurants fell by nearly 4%, according to data compiled by NPD Group, a retail market research firm.

When investigating a franchise opportunity one of the most difficult pieces of information to get from the franchisor is how much money you might make. This may be frustrating because you are not going to invest in a business until you have a good idea of what you can earn. In most cases the franchisor is not being purposely difficult.

From the leadership positions they hold, to the purchasing power they wield, women and minorities play an important role in the overall U.S. economy. Women and minorities have a presence in every industry and their contributions fuel economic growth. Hispanics alone account for 15% of the U.S. population, and by 2050 that number is expected to nearly double to 29%.

You've decided to take a leap and open a franchise. There is an abundance of franchise opportunities available, whether they are in the retail or service sector. Most businesses fall under one of these headings, with one providing a tangible item to purchase vs. a business that provides some type of service. Many times the determining factor will lie within your own personality and educational background.

Kendera Rimmer wanted to buy the Mr. Goodcents Subs & Pasta franchise at 3037 Main St. in Kansas City.

“This store means the world to me,” said Rimmer, 38, who since 2004 had advanced through the ranks from sandwich maker to general manager. Rimmer’s boss — the owner of the restaurant — was receptive to selling to her.

Do you own a franchise and want to terminate or sell it? Are you interested in buying a franchise? What agreements will the franchisor require? Here you'll find a great resource guide on franchise businesses as well as some valuable advice to help you better understand the franchise world.

Some women plan on becoming business owners practically as soon as they can talk and others fall into it by happenstance, but the motivation is often the same -- they want to escape the drudgery of working for someone else and make their own business decisions. Mary Ellen Sheets became an entrepreneur once her sons went off to college, leaving their after-school moving business behind. Before that, she was a systems analyst.

If you have the investment capital, the inclination and desire to succeed, a willingness to learn, a wish to be your own boss and a yearn to achieve a comfortable lifestyle, franchise investments offer the opportunity to achieve these goals.

When looking at franchise investments there are some elements you should look out for when making your decision:

Decisions in franchise-related law in 2009 produced new frameworks under which franchisors and franchisees will be doing business in the year ahead, and beyond.

Citing four restaurant-industry cases, litigators in the Atlanta-based DLA Piper LLP international law firm this week offered the “Top Nine for '09” legal decisions that they think will be affecting franchisor-franchisee agreements.

After being unemployed for a year, Pauline Hamian ditched the résumé and bought herself a job.
The former Burger King employee had no luck finding a job after being part of a corporate restructuring in 2008. While at an outplacement center, she stumbled on a webinar about franchising.

The availability of information about franchises for sale on the internet has taken some of the wind out of the sails of franchise exhibitions worldwide, but cannot replace the person-to-person contact where sellers and potential franchise buyers can meet and interact on the spot.

Most franchise exhibitions also include a seminar program, held in parallel with the expo, so that visitors can learn about specific topics of interest in a structured format.

A business to business company differs from others in such that while the others cater to consumers, b2b caters to businesses in a particular area.  The options and choices available upon thinking of going into this kind of business is not just profitable but diverse.  Here you can offer blue collar services such as networking or marketing or white collar services like printing and janitorial services.

As environmental awareness increases and governments, companies, and consumers demand planet-friendly alternatives for just about every product and service, a growing number of franchise companies are meeting the demand by changing the way they do business. Some concepts have centered their businesses around going green, while others have simply moved with the times by bettering the ways in which they do business.

1. Understand how franchising works!

2. Know what your own financial situation and objectives are to determine if franchise ownership is a workable option for you.

3. Examine your own motives, temperament, lifestyle preferences, health, family obligations, likes and dislikes to be sure you are realistic about undertaking a particular type of business.

Many business franchise opportunities are available through online sources that offer unique and successful startup packages for creative entrepreneurs. A business franchise opportunity is appealing to many people that are looking for ways to begin a new career, leave an unsatisfying job, or make added income for their families. Today's change in job market trends and needs have left some baby boomers in the cooperate world without jobs.

1. Not reading, understanding or asking questions about the disclosure document. These documents are typically long, sometimes 80 pages, but it is very important that you read and understand each item, 1 through 23, of the Uniform Franchise Offering Circular (UFOC). As you read the document, keep notes on those areas that are confusing and unclear.

If you’re in the middle of searching for a franchise to own, you’ve probably read about franchise concepts that state, “No previous experience is necessary.” How can this be the case when you’ll own and possibly manage a business? The reality is that although some concepts do require previous business ownership or industry experience, most truly do not.

It is a pre-conceived notion that purchasing a franchise requires a pocket full of money and oodles of money saved up in the banks, earning interest rates. Well, the reality is different. Anyone who is practically ANYONE can purchase a franchise and is a very good investment in all aspects. Now the question is why should you buy a franchise?

The first thing you need to keep in mind in your investigation is that it is a process of mutual elimination for both you and the franchisor. Therefore both of you are trying to determine if the fit seems right from the beginning. If either party comes to the realization that this is not the right match, they simply inform the other party and move on.

As the new year begins, prospective business owners are thinking about the coming year and making plans to purchase a business in 2010. Particularly since experiencing difficult economic times, business buyers have become more frugal, choosing not to spend their entire life savings on a business. In general, people value time with their families, a more flexible schedule, and cutting out the daily commute to work.

Since it’s beginnings in the 1950’s in America Franchising has been a steadily growing business. In the UK in the 1990’s there was an explosion of franchising activity and throughout the last decade the model has continued to proposer.

This article is not about the history of the franchise industry; far too much has been written about that. Nor am I writing about franchising your business; that’s a topic for later.

To assist with franchisee recruitment the Asia-Pacific Centre for Franchising Excellence surveyed attendees at a franchise business opportunity expo.

The surveys, conducted by Centre researcher and PhD candidate Steve Bennett, provided insight into potential franchisee’ needs and wants to help franchisors create better franchisee recruitment practices.

There are some people who just happen to be born with the entrepreneurial spirit. It makes them willing to dream big and step out in a leap of faith, even when the cost of a potential failure is as grand in scale as the possible benefit of a successful venture. One of the most appealing means of taking the first step toward the sustained career and lifestyle of a business owner is to purchase a license to operate a franchise of an already well-established business.

Because a franchise system is a symbiotic relationship, franchisors spend as much time studying you as you researching about them.  Yes you may bring in added income and aid the expansion plans of the company but if you end up not equal to the tasks of managing their company’s name, you may do them more harm than good.

With a new year approaching, now is an ideal time to reevaluate your future goals and aspirations. If the economic climate has put you in a holding pattern and you’re determined to make 2010 the year that you turn your hopes and dreams into action, then consider becoming your own boss. Franchise ownership enables you to get into business in a relatively brief period of time with an established concept that features a well-known brand and a proven business system.

After careful review of the UFOC/ FDD, you should be able to evaluate the business proposition, and whether or not the franchise will help you meet your financial and future goals. There are several major areas you must consider in deciding if the business proposition is the right one for you. One very direct way is to talk to other franchisees about their experience running the business and dealing with the franchisor.

There have been hundreds of theories and books written on what constitutes effective leadership. My work with many franchise companies, both good and not so good, has led me to the conclusion that effective leadership is the single most important factor in the long-term success of a franchise network. When you strip away the apparent cause of every significant achievement or problem there is always one driving force -- effective leadership or lack of it.

Buying a franchise needs the same kind of examination as an independent business. The first and most important thing is to look for a field you are interested in, you have the skills already, or you feel you can learn easily. You must also decide how much time and work you are ready to commit to make the franchise successful. You also might want to consider if you will be able to carry on the business if your franchisor shuts down the business.

Once you’ve decided, after conducting the necessary research, reviewing your finances, and consulting with an accountant and attorney about your situation, you’re must prepare to tackle the paperwork that precedes franchise ownership.

The primary document to examine in-depth is the Franchise Disclosure Document (FDD), formerly known as the Uniform Franchise Offering Circular, which must be issued to all prospective franchisees at least ten days before the signing of any contracts.

If you are doing research on the franchise industry as a whole or even on one particular franchise company, you will probably run across a number of phrases which are repeated over and over. Are these just clichés, basically without merit, notable only because they are used so frequently? Or are the clichés used so frequently because they are true?

You want a franchise business, but not just any old thing--you want something big time. We're talking about a multimillion-dollar enterprise. So how do you go about accomplishing that goal?

The easiest way to do this is to simply start at that level. Buy yourself a multimillion-dollar operation from the get-go, and you've already arrived.

There are a couple of categories in franchising that will continue to gather steam in 2010, and for many years to come. There will also be some other interesting things going on in franchising in 2010, and they don’t involve the latest pizza craze, or the launch of a solar-powered pretzel stand.

If you are looking for a franchise opportunity, the choice is mind-boggling. There are literally hundreds if not thousands of different types of franchise available for you to invest in, with the same variety in cost. Each has its own benefits and usually the more you pay there is more potential to earn.

Franchisee Recruitment Incentives

The process of granting franchises (or selling franchises as some refer to it) is one that can take anywhere from three months to three years. An initial inquiry from a prospective franchisee may not ultimately convert to a signed franchise agreement until an extensive process of assessment and reassessment has been completed by both parties.

Everyone in the franchisor’s organization must understand the legal “do’s” and “don’ts” of franchise development.

Every successful franchise system has built its foundation with several key components.  One of the essential building blocks is a franchise development program that effectively finds and then convinces high-quality franchisees to join the system in a manner that meets the company’s growth objectives without violating the franchise sales laws.

All good Franchise systems will require that Franchise Agreements are the same for all Franchisees. As a consequence, they will generally make the statement that the Franchise Agreement is a non-negotiable instrument. If a Franchise system allows for the negotiation of the various clauses contained within its Agreement that should be an indication that their own belief in their system is not as strong as you might think. Yet the system is what a Franchisee will be investing in, so…

Entrepreneurs looking for financial backing to buy a franchise can count on two things: lenders want to see strong business plans, and they expect borrowers to provide about a third of the total capital needed. Depending on the type of franchise, this could mean coming up with roughly $50,000 to $200,000 from savings, stocks, bonds, pensions, IRAs, property, and so on.

Franchise Article Author: Federal Trade Commission

If you're thinking about starting your own business and have only a small amount to invest, you may be considering buying a janitorial services franchise. For a fee, a janitorial service company (the "franchisor") typically provides you (the "franchisee") with customers and marketing, billing and collection services.

Management franchises can be an excellent route to business for folks who would like to run a business for themselves but don't really like to get their hands dirty. One of the key benefits of a management franchise opportunity is that you can hire workers as the franchise business expands.

Technology has woven through the fabric of franchising making it soar in the business world and it has revolutionized the franchise market to a higher level as well. What makes franchising more exciting, fast-paced, and interactive nowadays is its adaptability to the emergence of various technologically-advanced tools being incorporated in the franchise system in most franchise opportunities.

Franchisors are likely to stress an ability to follow a system. After all, it's common knowledge that at the core of any franchise's success is a tried, tested, and perfected system which is then duplicated over and over again. But what if a franchisee has an idea for a new product or a better system of efficiency? In such a well-oiled machine, is there room for innovation?

Every Franchise system should have a clear understanding of the following concepts. In addition, they should have a clear marketing strategy to help their Franchisees communicate to customers and prospects about how they will deliver these currencies as they operate their Franchise.

Trade. Give something to get something. Our inhabited globe has come a long way since the act of trade meant that ‘I’ll give you one caribou if you give me three baskets of carrots and a cord of wood’.

Many people are searching for ways they can best meet their financial goals. Some of the popular google searches are on things such as what are the best franchise opportunities and can I be successful with them? Some of the most popular and best franchise opportunities are often considered to be with companies such as Subway, McDonald's, Ace Hardware, or Pizza Hut.

Want to be your own boss? A franchise or business opportunity may sound appealing, especially if you have limited resources or business experience. However, you could lose a significant amount of money if you don't investigate a business carefully before you buy. The Federal Trade Commission's Franchise and Business Opportunity Rule requires franchise and business opportunity sellers to give you specific information to help you make an informed decision.

Franchise financing in Canada has some major similarities to the U.S. market, but is different in some key respects. This article will explore some of those similarities and differences that we have observed in the marketplace. More and more entrepreneurs are of course looking at franchise financing for a combination of both employment and entry intro entrepreneurship under a reduced risk mode. That is to say that a proven franchise concept enhances chances of business success.

1. Understand how franchising works!

2. Know what your own financial situation and objectives are to determine if franchise ownership is a workable option for you.

3. Examine your own motives, temperament, lifestyle preferences, health, family obligations, likes and dislikes to be sure you are realistic about undertaking a particular type of business.

Mandatory centralized marketing programs are probably one of the greatest strengths of franchising. Pooling funds from all of the franchisees in a system gives them, collectively, much greater marketing power. This central fund can be used to do things that no single franchisee could afford, like running television advertising campaigns. The fund can also be used to hire experts to produce advertising materials of far better quality than what an individual owner could create.

One of the downsides to becoming a franchisee is the waiting. If you have a retail location, you will wait for the site selection process to be completed, then wait again for the lease signing and build-out phases. Next you wait for customers to find you. If you have a service-based business, you have to go out and sell your services.

A type of business organization in which a firm which already has a successful product or service enters into a ongoing contractual association with other businesses operating under the franchisor's trade name and generally with the franchisor's direction, in exchange for a fee is known as franchising.

If you're thinking of buying a cleaning business franchise, these are some of the points you need to consider:

1. Area potential
2. Time involved
3. Ease of operation
4. Surrounding competition
5. Demand for services
6. Return on investment
7. Profit margins

For those who are looking to venture out into the business world and become an entrepreneur, there are many possible venues that they may choose to explore, two of the most popular being franchise opportunities and online home based businesses. Franchises can often provide an opportunity to buy into an already successful and highly advertised name and product, but at what cost does success with a franchise opportunity come?

Consumer Guide To Buying A Franchise

Buying a franchise is investing in your future.  Because the International Franchise Association wants tomorrow’s business owners to make educated decisions about their futures, it is providing the following information from the Federal Trade Commission’s (FTC) “Consumer Guide To Buying A Franchise.

FAQ's of Franchising - Question 1    WHAT IS FRANCHISING?

Franchising is a method of distributing products or services.  At least two levels of people are involved in a franchise system: (1) the franchisor, who lends his trademark or trade name and a business system; and (2) the franchisee, who pays a royalty and often an initial fee for the right to do business under the franchisor's name and system.

So you just found the greatest franchise opportunity in the world. Now what? You just need a place to build your store. That should be easy enough, right?? Just find a real estate agent and tell them what you want and Bam!-problem solved! Not so fast... Selecting an excellent site to build a restaurant or retail store is absolutely critical to the success of your business. If you make a poor decision in selecting a site, it could dramatically impact your startup cost.

This guide to buying a business is not intended to be a legally binding fully comprehensive bible to buying a business. We focus on a few primary points that may arise when buying a business or investing in a business opportunity.

It should also prove hints and tips that relate to the types of questions that you might want to ask the vendor.

When you go out to buy a franchise, don’t think that it is something like buying a car. Buying a franchise is a much difficult and important decision and here, the viewpoint of the franchisor too plays a big role. That is why many say that franchisors don’t offer franchise business for sale, rather they award a franchise business to worthy candidates. Hence, if you have zeroed down on one franchise, the most important day before starting a franchise will be the Discovery Day.

This weekend I was walking with a neighbor for one of our favorite charities and hit up a conversation on starting a business. My friend had just lost his job and was considering several future career options including opening a business, specifically a restaurant business. As we discussed various types of business he could get into, we talked a great deal about various restaurant businesses their business models etc

Though most people think of franchises in terms of stores and restaurants, but there are plenty of home-based opportunities available too, such as computer consulting, pet care, financial services, cleaning etc. Some may require specialized equipment, like a van with the company logo.

There are pros and cons to running a business from home. An obvious advantage of a home office is the possibility of tax deductions -- your accountant can determine what is applicable to your situation.

Thinking About Buying a Franchise? Get a Better Understanding of Franchising Lingo

Franchising can be a great way of getting into business for yourself. As a franchisee, you will be beginning your business with an established idea, something that has shown time and again that it will work. You'll get the tools that you need.

If you are in the market to buy a franchise, go out and buy a copy of this months' Entrepreneur magazine. They just released the list of the best Franchises for 2010. At the top of the list? Subway, McDonalds and 7-Eleven.

As I was reading through this excellent information, I came to think about what is important when picking a franchise?

Before you make a scene in the middle of the cubicle farm, grab the company goldfish and storm out of the office screaming “Good riddance, losers!” you might want to consider these seven truths first:

1. Chatter is the cheeky culprit of failure. There’s a classic country tune by Toby Keith called “A Little Less Talk and a Lot More Action.” Here’s how it goes:

I am fully confident in making the statement that there are many advantages to becoming a Franchisee in a good Franchise system. Of course, there are certain disadvantages as well, and each person must weigh their own dreams and desires in relation to what they want from their life. To many, the advantages will far outweigh the drawbacks. That’s why we have seen the domination of Franchising as a business strategy in the global marketplace over the past two decades.

Few things are better than the passion and satisfaction that is brought by the wonderful aroma of BBQ food.

There is no doubt in anyones mind that if barbecue was a national food, in the United States it would win without losing a breath. One of the core reasons behind this is the simple fact that barbecue is enjoyed World over by almost every culture that you can imagine, and as such, enjoys a level of popularity not seen in other types of cuisine.

It is true that opening a franchise can be much easier to be successful at than opening a new name business. Franchises can and do fail however. If you are considering opening a franchise, examine the possibilities and responsibilities carefully before putting your hard earned money into the franchisor's hand. While there are many advantages to owning a franchise, there are also many disadvantages.

While there are certainly legitimate reasons why a person may not become an entrepreneur, I will focus on a few of the main reasons cited by people that would like to begin a business but haven’t made that leap. I will also offer some thoughts on how to defeat the fear, and progress towards the dream.

Looking to live the dream of being your own boss? One of the safest and easiest ways to go about it is to look at franchise opportunities. The US Department of Commerce's statistics say that 95% of franchises are still in business after 5 years, making them nearly certain to succeed. Franchise businesses account for more than 50% of retail goods sold and employs more than 14 million Americans. These statistics alone should catch your eye.

There are various business types available in the franchise industry today. It is very useful to discuss these types for you as a potential franchise investor to help you assess the best one for you to take. Definitely, your chosen franchise opportunity should fit your total personality, skill set, lifestyle, and investment budget among other elements.

When determining whether or not franchising is the right path to business ownership for you, first consider whether or not you believe you will be able to abide by a franchisor's system. Becoming a franchisee essentially means conforming to a pre-set system, so you must be willing to follow a franchisor's business formulas and operating standards. Although you will be responsible for running the business day-to-day, the policies and procedures will be dictated by the franchisor.

Franchising has been around for decades. Starting in the 1950s we watched the development of McDonalds and others. The Franchise industry has grown and improved dramatically. Franchising allows for all of us to realize the dream of business ownership. When looking for a Franchise, Where do you start?

Few topics provoke greater debate in the franchise sector than the issue of churning. It is a hugely controversial issue that has the capacity to draw strong responses from both franchisors and franchisees alike, though from entirely different perspectives ranging from denial to claims it is endemic in the franchise sector.

Over 50% of small businesses fail within the first five years of operation. That is a staggering number, especially when you consider that many of these failed owners invested huge sums, even their entire life savings, into these ventures. The rate of failure for franchise owners is notably less. There are many factors that give franchisees an edge during those critical first five years.

For some, 2009 will be the year to become self-employed, whether this be as a result of a self-generated decision, or a by-product of losing a job. This article provides essential basics for prospective franchisees and insight into what franchisors should expect from future franchise candidates.

Though most people think of franchises in terms of stores and restaurants, but there are plenty of home-based opportunities available too, such as computer consulting, pet care, financial services, cleaning etc. Some may require specialized equipment, like a van with the company logo.

If you or someone in your family is looking for ways to be a success in the small business realm, you may consider your options as you consider opening or buying into a franchise. A franchise can be a great way to get into the world of business with a proven establishment backing you, as well as instant name recognition, which can often be a lifesaver in the dog eat dog world of business.

Take almost any town in America today and on some street you will find a franchised business. So accepting has the American public been of franchising that financial experts refer to franchising as the "wave of the future." For example, sales by franchised businesses now total more than one-third of the U.S. retail market. More than seven million people draw their paycheck from a franchised business.

When you buy a franchise, you often can sell goods and services that have instant name recognition, and get training and support that can help you succeed. But purchasing a franchise is like every other investment: there’s no guarantee of success.

The Federal Trade Commission, the nation’s consumer protection agency, has prepared this booklet to explain how to shop for a franchise opportunity, the obligations of a franchise owner, and questions to ask before you invest.

While there are certainly legitimate reasons why a person may not become an entrepreneur, I will focus on a few of the main reasons cited by people that would like to begin a business but haven’t made that leap. I will also offer some thoughts on how to defeat the fear, and progress towards the dream.

It’s Not the Right Time

One of the universal questions asked by anyone looking to join a franchise is, “Why are prospective franchisees attracted to a franchise.”  The answer lies in the understanding of what motivates personal decisions, particularly a decision that involves a significant investment. 

Business franchising is one of the safest and most risk-free ways to start up and run a successful business.

However running a franchise isn't for everyone, so take time to understand what running a franchise entails - especially the selling aspects - before you decide to buy a franchise business.

There are many reasons why an individual doesn’t pursue the dream of becoming an entrepreneur. Some are legitimate reasons, including the fact that personal desires and dreams don’t include being in business for yourself. Some people simply don’t have a desire to be in business for themselves and that is perfectly legitimate.

I am fully confident in making the statement that there are many advantages to becoming a Franchisee in a good Franchise system. Of course, there are certain disadvantages as well, and each person must weigh their own dreams and desires in relation to what they want from their life. To many, the advantages will far outweigh the drawbacks.

Like many people, Mitchell York got caught up in the economic maelstrom that followed 9/11, and was laid off from his job as the publisher of a technology magazine at the end of 2001. It was the last full-time job he would ever have. 

After 20-plus years as an editor and publishing executive, he was more than ready to exchange a closet full of suits for Hawaiian shirts and khakis.

Buying a franchise is a great way to start a new business.

Yes it’s true that the initial cost of a franchise is generally more than any non-franchised new business. It makes sense that a franchisor would need to be rewarded, both initially and on an ongoing basis, for their training, assistance, consultation, and guidance. And, remember, the franchisor is allowing you to use their proven business model for your own personal gain.

You're probably wondering how to find franchises. Here are 10 easy steps to follow. There are many well-known franchise opportunities available in almost every industry you can think of. Some are well established with proven systems and support structures in place, while others are relatively new.

So you just found the greatest franchise opportunity in the world. Now what? You just need a place to build your store. That should be easy enough, right?? Just find a real estate agent and tell them what you want and Bam!-problem solved! Not so fast... Selecting an excellent site to build a restaurant or retail store is absolutely critical to the success of your business.

When you start a new business or purchase an existing business you know exactly how much capital you will have to outlay, but when it comes to franchises, it becomes a little more complex. There are a few different franchise costs and to make sure that you do your due diligence, it is important that you are aware and understand each individual cost.

We asked two franchisors if they're seeing signs of economic recovery - and how what they see is affecting their plans for recruiting new franchisees in 2010. One is in the rapidly growing healthcare services field, the other in the highly competitive pizza sector. See if any of their perceptions or programs can help your plans for growth in the coming year!

Business Based on Proven Systems More Likely to Succeed

“In business for yourself, but not by yourself” – that’s a common adage used to describe the advantages of franchise ownership. And there is real validity to that statement

An independent business operator takes on a lot of risk when trying to launch a new business. Starting a business from scratch is hard work, and more than half of new businesses fail to become profitable.

To understand the advantages and disadvantages of owning a franchise business you need to have a basis for comparison. Other ways to realize your dreams through business ownership include buying a business opportunity and creating a business from the ground up. There are definite advantages and disadvantages to owing a franchise business over these other career or...

Stuart Frankel isn't what you'd call a power player in the world of franchising.

Five years ago, he owned two small Subway sandwich shops at either end of Miami's Jackson Memorial Hospital. After noticing that sales sagged on weekends, he came up with an idea: He would offer every footlong sandwich (the chain also sells 6-inch versions) on Saturday and Sunday for $5, about a buck less than the usual price.

There are thousands of options available to you in the world of franchising. Before you make the leap and invest into any of them, you should arm yourself with knowledge and data that can determine your success as a franchisee.

First, think about your business skills. Are you, personally, a good salesmen? A good marketer? Manager? Would you prefer to manage a team of associates or would you be more comfortable working alone?

Since most franchises offer a cookie cutter plan for operating within their system, there may not seem to be much room for creativity. However, there are some ways to make the franchise your own while still adhering to the franchisor’s rules and regulations.

Franchise Size

While the restaurant industry can be difficult to succeed in, the numbers that are out there are just a bit misleading. Yes more restaurants fail than succeed, but that is more because the people that are opening up restaurants have no idea what they are doing. How many times have we heard about movie stars that open a hot spot and it goes belly up less than 2 years later?

Recently I have seen the phrase 'Recession Proof Franchise' all over the Internet. But what exactly is this? Furthermore is there such a thing? It would appear to be the complete answer in the existing hard times if there was indeed a franchise opportunity that was genuinely 'recession proof'.

Before New York Broadway producers bring a production on the road, they’ll test it in a few smaller cities to see if the humor or pathos translates well to different audiences. After all, not every town sees life in the same way as New Yorkers. A similar comparison could be made with franchised businesses. A concept that does extremely well in one location may not have the same appeal in a different part of the country.

For people considering buying a restaurant franchise there are a wide range of opportunities.  The key steps towards owning a food franchise are as follows.

Evaluation

Before taking any other steps towards buying a food franchise it will be useful for you to first evaluate your skills and interests.

If you're keen to start your own business but worry about your lack of experience, a franchise is the way to go. When you sign up with a quality franchisor, you get the clout of an established name and all the backup and resources you need to get started. But franchising can be a murky world. And while most franchisors are straight and above board, there are a few sharks in the water.

At the point of receiving disclosure documentation, many potential franchisees are recommended by their franchisors to use the Franchising Code’s 14-day waiting period to undertake their due diligence on the franchise investment.

The problem for many potential franchisees at this point is that they don’t know what due diligence is and may have never heard the term before.

Lately, more and more franchise companies are converting a significant number of their company-owned units by selling them to franchisees. This trend, commonly referred to as refranchising or retro-franchising, can be driven by any number of motivations on the part of the company, and it may represent a wonderful opportunity for a careful buyer if the circumstances are right.

Each year, Entrepreneur, a prominent online and print source for everything business, releases its list of the top 10 new franchises. While it’s unclear exactly what the criteria is for this list, one thing that’s clear is that every business that makes it onto the list has a solid business model and business plan and has proven itself to be a viable business option in the current market.

You’re looking into buying a Franchise, and you need the best information possible to make sure you make a good decision about buying a Franchise. Well, over the past 20 years, I’ve seen (and heard about) people making the same mistakes over & over again that added tremendous risk to that decision.

This might not be something you have considered, but in the franchising business you do need some expertise sometimes.  This will apply to both franchising your business and buying a franchise.  Do not go it alone either, especially if you are first time franchiser or business owner.  There is a lot to learn about buying and selling franchises and you likely won’t find it all online. At least not yet.

It is no secret that the restaurant industry is a tough one to succeed in. However, when you look at the real numbers, it is because far too many people get into the industry thinking that all they have to do is open their doors, have a good time and the profits will roll in. Take it from someone who has been there, the benefits of restaurant franchise give a new owner a much better chance of success.

Take a look around you and you can see signs of the flailing economy. Jobless claims are up, businesses are downsizing and others are going bankrupt. Not to mention the foreclosure and credit crisis.

So I ask you this question. "Why are you looking to start a franchise business, now?"

'Good franchises' are those that are a good for YOU, some people succeed and others fail in the SAME franchised business. This happens for several reasons and in all types of business.

The following information relates mainly to small franchises which are home based but most of the information would be useful to anyone whose aim is finding a franchise that suits them.

Having a short list of industries to investigate lets you start looking at specific franchises. Potential franchisors should send you detailed information at no cost - simply call companies you are interested in and request the information. You can get many more leads at franchise trade shows, which bring together hundreds or thousands of franchisors looking for buyers. You can also talk with a franchise consultant or broker.

When you are starting a franchise, a big part of your due diligence process should be devoted to conducting extensive market research. A thorough market research is mandatory, if you want to become successful as a franchisee. But, many novices fail in spite of starting a franchise of a top franchise opportunity, just because they don’t do proper market research. You may find the product/service great, but if there are not enough people to buy it, then it is of no use.

When one thinks of a franchise business, people usually think of Pizza Hut, KFC, McDonald. However, many people I talk to have zero interest in that particular business model.

Recently, the trend offers flexibility, limited and controlled hours, and businesses that offer lots of family time Something that doesn’t require big capital up front.  These day many people looking for Home-based franchises business.  Is there such franchises available?

Let's say you're tired of corporate America and you'd like to own a business of your own. Unfortunately, you've never owned a business before, and your parents didn't own a business either, so you really don't know what to do to get started. This is the biggest dilemma for many corporate employees who want to ditch corporate America and start their own company.

A significant step in the development of starting up a business venture is deciding whether or not to buy an existing business, finance a start-up or invest in a franchise alternative.

One of the biggest mistakes involved in new business ownership is making a decision that may significantly affect you and your family, without gaining a full understanding of the key components involved.

Often franchise buyers become interested in a certain type of business and brand in the franchising sector. They've always considered owning a business of their own, but never really had the experience to quit corporate life and go for it. Franchising seems to be the answer, and they when they see a concept or brand name which they are drawn to they start to do a little more research.

If you are considering on buying a franchised outlet as a business of your own then perhaps one of the questions you might have is regarding the franchise territory that comes with your franchise. Often, franchisors will make a "bullet point" in their brochures about "Exclusive Franchise Territory" as if this is some kind of a bonus that you get for giving them the $20,000 franchise fee.

When planning new ventures, you need to decide whether this new business should be a franchise or not. Well, major entrepreneurs have analysed the franchise opportunity and have recognised the following excellent characteristics of any franchise opportunity:

1.Firstly, with a franchise, a lot of the headaches have been worked out for you. This includes the menu, kitchen, equipment, the approach, employee attire, design and layout as well as how the franchise business is run.

For some, 2009 will be the year to become self-employed, whether this be as a result of a self-generated decision, or a by-product of losing a job. This article provides essential basics for prospective franchisees and insight into what franchisors should expect from future franchise candidates.

Starting your own business should never be an overnight choice, nor should it be something that you take lightly. Before you even write up that business plan, you need to be sure that you are ready to take on the commitment to hard work that starting out often takes. This is true of any business, but also true of getting yourself started in a franchise as well- this is not a get rich quick scheme and as anyone will tell you, if something sounds to good to be true, it is.

An ongoing challenge in franchising is the lack of understanding among franchisees of their obligations under the franchise agreement.

The Franchise Advisory Centre has taken a great number of calls over the years all asking essentially the same question:

“My franchisor wants to me to do / change / stop doing / upgrade or divest something. Can they make me do that?”

The most valuable source of information on any franchise system is its existing franchisees. These are the people who are living the life of a franchisee every day, and they can tell you the reality of what that life will be like for you if you decide to join up yourself.

With any franchise you are interested in, you should plan on calling or visiting a number of the existing franchisees during your investigation.

The term 'franchising' covers a variety of arrangements in which the owner of a product, process, service or even just a name (in the terms of a celebrity) allows someone else to use it in exchange for some payment.

This rest of this page refers particularly to 'business format franchising'.

New guidance issued by the Small Business Administration (SBA) will loosen the limits of the 7(a) loans ability to finance goodwill (intangible assets) in franchise business purchases with changes in ownership.

Goodwill is the term used to describe the intangible assets of a business, verses the hard assets such as equipment, buildings and real estate.

Buying a franchise is a major investment. You should expect to draw on almost all of your financial resources and/or take on additional lines of credit. Before start talking to franchisors, have these questions answered:

-What is your net worth? How much of that is liquid (accessible cash)?
-How much can you afford to lose? (Remember - nothing is guaranteed.)

If you want your franchise to succeed, you need to give 110% of your efforts; you have to be in it to win it. As a former franchisor, I can tell you that the most successful franchisees went above and beyond the call of duty, they took their businesses as serious as their families, and because of that their success seemed to know no bounds.

To understand the advantages and disadvantages of owning a franchise business you need to have a basis for comparison. Other ways to realize your dreams through business ownership include buying a business opportunity and creating a business from the ground up. There are definite advantages and disadvantages to owing a franchise business over these other career or business ownership options but to know which path...

Franchises account for over 40% of retail sales today. You may go to any center and find franchises operating there. With over a century of History behind them, franchising is a strong, efficient way for you to venture into your new business. What are franchise opportunities? What does it mean to me and will it work in my area?

So you just found the greatest franchise opportunity in the world. Now what? You just need a place to build your store. That should be easy enough, right?? Just find a real estate agent and tell them what you want and Bam!-problem solved! Not so fast... Selecting an excellent site to build a restaurant or retail store is absolutely critical to the success of your business. If you make a poor decision in selecting a site, it could dramatically impact your startup cost.

Whether the business is a franchise, existing business or home business, there are absolutely things that happen (or do not happen) that cause business owners with the best of intentions to fail. The most prominent reason a business fails is that the business quits before they allow themselves enough time for success. Anticipating immediate results in any business is a recipe for failure.

Charlie Morrison, CEO of Pizza Inn, said he encourages his franchisees to experiment with new flavors and toppings on their pizzas. After all, some of the 310-unit-strong chain’s best-selling specialties started at the franchisee level, including a bacon cheeseburger pizza with a mustard base and pickle on top.

Buying a Franchise

An important step in the small business startup process is deciding whether or not to go into business at all. Each year, thousands of potential entrepreneurs are faced with this difficult decision; because of the risk and work involved in starting a new business, many new entrepreneurs choose franchising as an alternative to starting a new, independent business from scratch.

How important is choosing a franchise location in the process of starting a business in franchising? The franchise location is a very important factor in bringing profitability and success into your chosen franchise opportunity. Imagine a business being situated in an isolated place where only few people live or a business selling very expensive goods or services within a community where the median household income is very low.

It's one of the most important tools you'll get when buying a franchise - and the foundation of your relationship with the franchisor.

The Franchise

Did your lawyer approve the franchise contract you are considering after he or she studied it paragraph by paragraph?
Does the franchise call upon you to take any steps which are, according to your lawyer, unwise or illegal in your state, county or city?

There are various business types available in the franchise industry today. It is very useful to discuss these types for you as a potential franchise investor to help you assess the best one for you to take. Definitely, your chosen franchise opportunity should fit your total personality, skill set, lifestyle, and investment budget among other elements.

e recent economic instability and uncertainty in the marketplace is exerting a far-reaching impact that, for some professionals, influences much more than just the bottom line. Challenging times often inspire new solutions and provide many individuals with a heightened degree of analytical and strategic insight into the business model that works best for their personal circumstances.

Franchising has been around for over a Century. Franchising helped manufacturers distribute their products throughout a region. Franchising has come along way, and the popularity in the last 50 years has exploded. What are todays franchises? What products are selling?

Albert Singer developed a sewing machine. He made use of "franchising as a way to distribute his machines over a larger market. His market began back in 1851.

Before you decide which franchise you're going to choose, you need to take a while to consider your five year goals - this is in respect not only to the financial aspect, but also, your own life goals as well. Are you someone who doesn't want to be tied down to the area, who enjoys traveling? Then you'd want a more hands off operation.

Stuart Frankel isn't what you'd call a power player in the world of franchising. Five years ago he owned two small Subway sandwich shops at either end of Miami's Jackson Memorial Hospital. After noticing that sales sagged on weekends, he came up with an idea: He would offer every footlong sandwich (the chain also sells 6-inch versions) on Saturday and Sunday for $5, about a buck less than the usual price.

Last summer, when the butcher paper came off the windows at the former Starbucks in Seattle's Capitol Hill neighborhood, locals found a narrow little cafe called 15th Ave Coffee & Tea, serving espresso pulled from a manual La Marzocco machine by hipster baristas with a flair for latte art. Drip coffee is made cup by cup from small-batch-roasted beans brewed in an $11,000 ceramic-filtered Clover machine.

Whether it's hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors' services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions - and listen closely to the responses.

How can I go about investigating a particular franchise that I am interested in?

-Request an information packet from the franchiser.
-Interview owners of current franchises.
-Research the industry and other franchises in this industry.
-Seek expert advice to better understand the franchise agreement.
-Review costs related to getting into this franchise and compare them to the costs of starting a nonfranchised business in this industry.

You may be sitting there asking yourself if you have what it takes to become a success if you buy a franchise. You have already looked into everything you needed to about the franchise itself, assessed your own goals and path and now, you wonder, can you really do it? There are many traits to successful franchisees that you won't find in those who didn't succeed.

It may surprise some to learn that Canada has had franchise legislation since the early 1970s.   That is when the province of Alberta chose to introduce franchise legislation of the type then favored in the United States: disclosure with registration.  This was an anomalous legislative development, as the volume of franchise activity in those days was miniscule by today’s standards.

Why should I purchase this particular franchise?

A franchise may need to be looked at from a product or service comparison prospective. While one franchise’s product or service may be suitable in a geographic area, another may not be. When evaluating a franchise, close attention needs to be spent evaluating:

Buying a franchise business is something that should always be approached with a great deal of caution and research. You should make sure that you comb over every detail of the franchise you wish to purchase and make sure a competent franchise attorney looks over ever document the franchisor provides to you.

Franchising Strategy

PrePurchase Detective Work

In addition to the routine investigation that should be conducted prior to any business purchase, potential franchise buyers should be able to contact other franchisees before deciding to invest. They should also obtain a uniform offering circular containing vital details about the franchise's legal, financial, and personnel history before signing a contract.

The Franchise Disclosure Document (FDD) is a treasure trove of information for anyone serious about examining a franchise opportunity. It contains all of the information that state and federal franchise regulators consider relevant to a franchise investment, and it is indispensible to a franchise purchaser.

The Keys to Franchise Business Owner Success

The value of the brand, the location, the support provided by the franchisor, the quality of the product or service, local competition, and the economic climate...they all influence business success. We would expect the potential franchise business owner to investigate these factors thoroughly as part of the due diligence process.

Franchise consultants assist businesses that are ready to explore franchising as a means of growing their presence and market share. They also assist potential franchisees to find the ideal business opportunity for them.

Many successful businesses choose to grow their business in the normal way by taking on more staff and more premises in their target markets.

"In 2010 Franchising will be the most successful way of market expansion." - J. Naisbitt

So what fits YOU better - a traditional franchise or a virtual franchise?

If you can say YES to 7 out of the following 10 questions, then a TRADITIONAL franchise may be a good opportunity for you!

Significant numbers of established franchises are offered for re-sale in the franchise industry. Owners sell for a variety of reasons such as: cashing in for retirement, spouse job relocation, family circumstances, health issues, other business interests, narrow margins because of poor management and banker pressure. These present opportunities for buyers. In our 2009 economy asking prices are down and terms are loose.

Thinking of buying a franchise, but don't know what you need to know before you go into it? Don't worry; we're here to help with some essential questions that you'll want answered.

There's a ridiculous amount of franchises that people can buy into; some are good, some are bad, some might even be scams. It's working out which franchises are worthwhile (there have to be some, some franchisees become millionaires) that's difficult.

An interesting combination of factors at this time in history may be the reason so many women are turning to franchising to fulfill their entrepreneurial desires. Women’s increased financial power, better education, and corporate experience, combined with their desire for more autonomy and desire to connect with others who share their values make franchising a great fit for many women.

New franchise opportunities are springing up everywhere, and people are rapidly buying into them. A franchise may definitely provide a great business opportunity with a greater chance of survival than a traditional business startup. Here are some reasons why a franchise business opportunity may be just what you are looking for.

You have been bitten by the Entrepreneurial bug. You want to start your own business and you are considering purchasing a franchise. Certainly worth considering. There are many great franchises in operation throughout the world today. Like everything in business, this is a decision which will have a massive impact, not just on your life but on the lives of your family, your friends and your acquaintances.

A study by The Institute for Operations Research and the Management Sciences showed that 91% of successful franchises have one common thing written in their franchise agreement: exclusive territory. That is enough to tell why you should know about this part of your franchise agreement thoroughly before you actually buy a franchise.

Investigating Franchise Offerings

Before investing in any franchise system, be sure to get a copy of the franchisor's disclosure document. Sometimes this document is called a Franchise Offering Circular. Under the FTC's Franchise Rule, you must receive the document at least 10 business days before you are asked to sign any contract or pay any money to the franchisor.

Selecting a Franchise

Like any other investment, purchasing a franchise is a risk. When selecting a franchise, carefully consider a number of factors, such as the demand for the products or services, likely competition, the franchisor's background, and the level of support you will receive.

Many people dream of being an entrepreneur. By purchasing a franchise, you often can sell goods and services that have instant name recognition and can obtain training and ongoing support to help you succeed. But be cautious. Like any investment, purchasing a franchise is not a guarantee of success.

The Benefits and Responsibilities of Franchise Ownership

If you are interested in starting a business and thinking about buying a franchise, it will help your planning to compare the franchise opportunity with the opportunity of starting an independent business.

In a sophisticated business plan for a startup business, the business is contemplated to begin (produce a product or service for an identified market), to accomplish a profit cash flow...

Although it may not be immediately evident, a franchise company is under no obligation to award a franchise to just anyone who can afford the franchise fee.

Like any good business, a franchise company will want to populate their system with great people. Since franchising has as its foundation a strong, consistent brand, a franchisor looks for franchisees who will present the brand in the most positive light.

When you are starting a franchise, a big part of your due diligence process should be devoted to conducting extensive market research. A thorough market research is mandatory, if you want to become successful as a franchisee. But, many novices fail in spite of starting a franchise of a top franchise opportunity, just because they don’t do proper market research. You may find the product/service great, but if there are not enough people to buy it, then it is of no use.

We get so caught up in the daily life of running a business, it’s easy to miss the forest for the trees.

Not that you have a choice! You’re fighting fires, handling a pissed-off customer, rending your face over an emergency bug-fix, the website just went down, and the accountant is coming tomorrow and the books are in shambles.

It may surprise some to learn that Canada has had franchise legislation since the early 1970s.   That is when the province of Alberta chose to introduce franchise legislation of the type then favored in the United States: disclosure with registration.  This was an anomalous legislative development, as the volume of franchise activity in those days was miniscule by today’s standards.

Food franchises are the iconic picture of a franchise and, believe it or not, have actually been one of the minute few industries that have shown growth during our recent recession. Before you make the assumption that food franchises are invincible, understand that they have gained the recession-resistant status through the hard work of building strong brand names and products that appease the American appetite without devouring the American wallet.

From the leadership positions they hold, to the purchasing power they wield, women and minorities play an important role in the overall U.S. economy. Women and minorities have a presence in every industry and their contributions fuel economic growth. Hispanics alone account for 15% of the U.S. population, and by 2050 that number is expected to nearly double to 29%.

As a small business owner, you will probably lose some business during the downturn, despite your best efforts, as client companies cut their budgets, shift strategy, or, sometimes, go away altogether.

The economic downturn has made client and investor retention trickier than ever. Business owners have to do a lot more to compel investors and clients to make long-term commitments and agree that investing in their services or products are essential.

Consistency lays the foundation and creates expectations, employees, franchisees, vendors and customers.

Promoting consistency within any system is tantamount to laying   the cornerstone of a great company, for the consistency which you create, develop, nurture and enhance will eventually permeate your organization.

Given the choice between purchasing a box of Honey Nut Cheerios to help benefit a local school or buying a similar brand offering no such promotion sitting on shelf next door, many people will choose the charitable offer.

Consumers are more likely than not to support corporations pitching offers that benefit a worthy cause, particularly in this economic climate.

Franchising is the preferred vehicle for many to join the business world. It has become more important than ever, as the country is undergoing an economic downturn and jobs are being curtailed. Even corporate people are turning towards owning their own business to get away from jobs in which they are unhappy.

The franchising industry has gotten a lot of notice of late from people who are using the tough economic times to re-evaluate their futures. Perhaps you were laid off from a company where you’d worked for decades. Loyalty to employees is no longer a strong suit in corporate America. Perhaps you were determined to take your career into your own hands and not be at the whim of corporate dictates.

ReRetailers large and small are bringing in customers with in-store events: cocktail nights, art shows and movie screenings.

Navin Megji calls it "the thoroughfare" -- a stretch of San Vicente Boulevard that isn't a shopping district so much as a racetrack for commuters. Yet it's this strip of posh Brentwood where the 25-year-old boutique owner set up Feature -- a chic,

The United States Postal Service offers postage discounts for pre-sorted mail. The problem is finding out which changes are required to qualify for lower rates. The understanding of postal regulations is a science. For example, mailing to addresses and not specific recipients provide big savings if done correctly. The total cost, including the printing and postage, can be less than the $.44 price of a first class stamp.

Things have been going so poorly for so long that any of us could be forgiven for thinking recession is the new normal. The economy has been in decline for 22 months, and as we head into 2010 many pundits assume things are going to continue as they are—or maybe get even worse. Others figure 2010 can't be anything but better than 2009 and recommend business leaders plan accordingly.

Weathering the current economic storm requires clear, level-headed thinking and a strategic process for action.

Low consumer confidence, fickle consumer spending, unpredictable commodity costs, and tight credit markets are all causing distress throughout the franchise industry and injecting new stress into the franchisorfranchisee relationship.

Prior to the economic downturn, Eric Diaz was managing a department that handled futures systems for Merrill Lynch in New York. Today he's a full-time pet groomer, riding around Hudson County, New Jersey in a tricked out Mercedes van replete with two 65-gallon water drums, a hydro tub and a host of shampoos, conditioners and other doggie styling aids.

Trish Harrington brought her 6-year-old daughter to a birthday party at Snip-its in North Attleborough and fell in love with the children’s hair salon. A CPA and controller at a Rhode Island financing company, she went home, did her homework, and four months later signed an agreement with the Natick-based franchise to develop three new locations.

A look at today's franchise candidates will reveal they are more sophisticated, better educated, and more technologically advanced than ever before. In addition, and even more so because of the economic downturn, they are extremely cautious.

Today's candidates are spending more time researching opportunities, and doing so at a much slower pace.

If you are looking to buy a franchise, one of the most difficult questions you will be forced to answer is, "What kind of business shall I buy?" The best franchise for one person may not be the best franchise for someone else. One thing is true, however. If you select an option from among the 10 best franchise opportunities listed below, you can hardly go wrong.

As traditional funding sources dry up, franchisees have to get creative. Fortunately, reliable strategies aren't being kept secret.

It's been said many times, "Necessity is the mother of invention." The credit crisis has made funding a new franchise much more difficult, but you needn't give up hope.

Want to know what will put the "grand" in your grand opening?

Find out from some of the biggest and best franchises in the country. Here's what they are saying will assist franchisors and franchisees in having a successful and profit-producing grand opening. And read what some of their "star" franchisees have to say as well.

One of the best ways to effectively jump-start awareness and interest in your franchised business is to hold a grand opening. A successful grand opening can often result in a short-cut to sales and revenues that otherwise might have been longer in the making. A well-thought-out and successfully executed grand opening can greatly assist with your ultimate goal:

A business partnership can be said as a marriage between two people who share the same vision. Like in a marriage, both the partners have to work in tandem for the business to work. They have to trust each other and perform their assigned duty to their best ability. And like a marriage, the partnership too can have disputes which, if not handled properly, can lead to a “divorce” between the two partners!

Franchise Business Buyer's Guide

While most franchises are sold directly by the parent franchisors, there is a growing set of middlemen called franchise brokers or franchise consultants. Much like real estate agents, they work to help match buyers and sellers. Their services are free to the buyers - they are paid a commission by the franchisor.

You know there are "right" customers and "wrong" customers and while you may not (yet) know how to tell them apart before they become your customer, you know that the "wrong" customers deliver the least value and create the majority of problems in your business.

Who is a customer?

Nothing can be worse for a business, if you find that someone is starting a franchise of the same franchisor just a few feet away from your outlet. Sometimes, even a company-owned franchise may open a location near you. In this situation, you have to compete not only with your competitors, but also with your own company!

The franchising industry has gotten a lot of notice of late from people who are using the tough economic times to re-evaluate their futures. Perhaps you were laid off from a company where you’d worked for decades. Loyalty to employees is no longer a strong suit in corporate America. Perhaps you were determined to take your career into your own hands and not be at the whim of corporate dictates.

What is a franchise?

When you think of a franchise, you probably think of McDonald’s because it is famous for its franchises. So, let’s use the Golden Arches as our example. If you buy a McDonald’s franchise, you will be responsible for running your restaurant, but you will use the marketing methods, name recognition, brand, products, and services that have already been developed by the corporate company.

If you've been considering buying a franchise business, you are probably weighing the pros and cons and looking for holes in the logic. As with any business venture there are risks involved with buying a franchise.

Q: Do women face unique risks starting a franchise business?
A: This is a pretty common question and the answer applies to minorities as well. Essentially, the answer is no.

Women interested in franchising are finding new and unique opportunities in the educational and personal services industries.

More and more successful women are learning about the benefits of owning their own franchised businesses. Catalyst, a non-profit research firm devoted to advancing women's careers in business, reports that women choose to strike out on their own for a mix of reasons.

Which franchise categories hold the most promise for 2009? We break it down and give you the first look.

The world of franchising is as dynamic as ever. Every year, new franchise concepts emerge, existing ones expand and opportunities abound for individuals interested in getting into business for themselves via franchising.

Franchise opportunities provide the best of both worlds for aspiring entrepreneurs as they give you the freedom and independence to operate your own business while also having the backing and support of a major organization. For aspiring business owners, franchises can provide a great way to realize a stable income with great opportunity for growth and expansion.

The first McDonald's franchise was given to Nathan Fox in 1953 and opened in Phoenix Arizona. This was thirteen years after the McDonald brothers opened their first McDonald's restaurant. Dick and Mack had begun their McDonald's legacy with a restaurant in San Bernardino California in 1940 with a menu that has 25 items on it.

Franchising involves an almost symbiotic relationship between the franchisee and the franchisor. The franchisee provides expansion, additional profit and increased brand recognition while the franchisor provides the basic know how, brand name, supply chain, and continuing support for the franchisee. To pay for this instant business, the franchisee shells out an up front fee or a franchise fee for the use of the business system and the brand name.

Guarantee your own success by choosing the right franchise for you from the beginning! Don't just buy a big name become a huge name.

If you have already decided to become a franchisee that is one big decision that you no longer have to worry about. Now you need to figure out which franchise you want to start. This can be a tough decision since there are so many franchises to choose from.

One of the most important parts of buying a franchise is doing your homework. So get out there and grill the people who know the franchise best.

Sell skin-care products or own a hotel. Groom dogs, help people lose weight or do their taxes. These are just a few of the opportunities in today's franchise world, which includes a boggling variety of concepts selling every imaginable product and service.

As a franchise sales consultant I am often asked what are the advantages of the master franchising business model and buying a master franchise. Master franchising, some times referred to as sub-franchising, is a form of franchising that allows an individual to buy the rights from a franchise company (The Franchisor) to sub-franchise their business concept in a specific territory or large geographical area.

Experienced franchise players can continue their success and those new to franchsing can ensure a bright future.

By Linda Burzynski, CFE

There’s no doubt the economy, lack of capital and limited access to loans are having adverse effects. Though the golden parachutes of decades past are now just a memory, franchising will make a comeback because of prospective franchisees’ drive to succeed.... more



And the Survey Says, Future is Bright for Franchising
Posted by: Admin Post on October 1, 2009
Author: John Reynolds

Current economic conditions are good for franchised businesses and the outlook for the year ahead is very optimistic, International Franchise Association franchisor-members confirmed in a recent Web-based survey. More than two-thirds (68 percent) held a favorable view for their specific business, half calling current conditions "very good" while a similar share said things were "somewhat good."

When one is looking at a franchise it is important that one do the research so that they know what they are getting into. A little homework at the beginning will avoid surprises down the road. You want to go into the opportunity you select with both eyes open. 
Doing Research on a franchise Opportunity
No franchise is perfect.

Tips to help you select the best spot for your new business.

The topic of finding a good location and then negotiating a favorable lease is one that all franchisees face when they are in a site-based franchise system. Because most new franchisees do not have any experience in finding a location, they can experience significant anxiety if the proper assistance is not available from the franchise company.

In becoming a franchisee, you are about to invest a large portion of your valuable time and money as a new business owner. Therefore, you should make sure that you are doing everything possible to fully understand the deal before you invest. In order to do this successfully, it is highly recommended that you hire an attorney specializing in franchise law.

Owning a franchising business can offer you brand awareness, trustworthiness and consistency that can take years to build up for any new business. It can be one of the easiest and most successful methods of entering the business world, however don’t think of it as an easy ride. A franchise takes a lot of hard work and dedication to make it a success and you have to find the right kind of franchise opportunity for you.

When investigating a franchise opportunity, many people make several very basic mistakes, based on common assumptions or misconceptions. If you are looking into this possibility, whether you have found a possible franchise or have not yet even started looking, it may be wise to spend a little while asking yourself some basic, but very important questions before deciding just how appropriate such a venture will be for you.

Franchising is booming. Here are the right questions to ask when evaluating franchise opportunities.

Franchise businesses such as Wendy's, McDonald's and Jack-In-The-Box are booming. The people setting up franchise ideas and businesses know a good thing, and are really promoting this idea. Franchises for just about every conceivable kind of business are being sold in ever increasing numbers.

So you want to be your own boss? Well you should know that 90-95% of most independent small businesses fail in the first 5 years. One of the key reasons for business failure is lack of capitalization. One method of beating this failure rate is to buy into a proven business system or plan. How do you do that?

Name: Carina Mäkelä

Professional background: Research & Marketing (private and NFP sector).

This is an interview with a lady who has done her homework in investigating the opportunity that franchising will provide her in starting up her own business. She won a free copy of my e-book in the competition I ran last month.

Buying a franchise is a major investment. You should expect to draw on almost all of your financial resources and/or take on additional lines of credit. Before start talking to franchisors, have these questions answered:

-What is your net worth? How much of that is liquid (accessible cash)?

Know your rights--and limitations--in disputes with franchisors.

Q: I'm a franchisee of a retail specialty chain. For the past three months, I've been selling a new product I found through one of my local vendors. My customers are thrilled with the new product, and it's selling very well. My franchisor's field representative was in this week and told me the product was not authorized and that I had to stop selling it immediately.

Have you ever wondered what it would take to leave the corporate world behind and own your own business? Are you tired of being the go-to girl, a small fish in a big sea, earning money for someone else?
Is it time to take charge of your future and really be in control of
your destiny?

If you answered “Yes” to any of these questions, then you’ve thought about business ownership – but something has stopped you from moving forward.

The primary benefit of franchising is that it leverages the brand and experience of a successful business concept, while the main drawback is the tight control franchisors exert over their franchisees.

Pros
The franchise system provides the benefits of a big company to an individual businessperson. These include:

Many franchise buyers want to get in on the ground floor of the hottest new franchise that is available. They see that the company is selling the franchises like hotcakes and they want to get in before the franchise is sold in their area where they live. But you must be very careful about buying franchises that are part of a Fad and not part of a long-term trend.

Product recognition has never been more important than it is now. And this includes the restaurant and food services industries. Statistics show that, come mealtime, fast food is the first choice of hungry people all over the world, and these numbers are only on the rise. In an economy where few markets are growth markets, it only makes sense to buy into one of those showing increased profits.

A proven business model that has stood the test of time
Franchising really began to blossom in the post-war 1950s and 1960s. Franchisors of convenience goods and services seemed to be popping up on every corner. McDonald's, Kentucky Fried Chicken, laundry services, dry cleaners, hotels, and rental car franchises flooded the marketplace.

"Franchising works by combining the drive and energy of the entrepreneur with the experience and expertise of the franchisor."

This wonderfully concise description of franchising comes courtesy of a franchisor from Down Under: Jesters Franchising, purveyor of Jesters Jaffle Pies (all-natural meat, vegetable, and fruit pies) with 50 units in New Zealand and Australia.

The thought of being your own boss can sound pretty wonderful to someone tired of working 50 to 60 hours a week to make money for some impersonal corporation. And there is probably no better way to be self-employed than by Buying a Franchise and taking advantage of all that Franchising has to offer: a tried and proven business model, initial and continuing

An important aspect to consider when talking to potential franchisors is that they are evaluating you, as well. While you are paying hefty fees for the right to use their name, they are entrusting you with their image and investing time and effort in your success. If they lack confidence in your ability to run a successful franchise, they can turn down your application.

Buying a franchise opportunity from a company with a track record of success is no guarantee that your particular franchise will succeed. Before making your decision, you need to research the industry you are considering and the specific companies selling franchises.

First, narrow down your shopping list by considering which industries your natural interests and skills align with.

Virtually every article dealing with the promotion of positive franchise relations places the responsibility upon the franchisor.

In an effort to maintain positive relations with its franchisees, the franchisor is advised to maintain ongoing and open communications and to seek franchisee feedback on a regular basis.

Anyone seriously considering the purchase of a franchise will ultimately have to decide if a "service" franchise or a "retail" franchise is a better fit. It's an important distinction in terms of both entry requirements and operational realities, and it's a decision that can determine your ultimate effectiveness as a franchise operator.

When buyers choose to purchase an existing franchise they can enjoy the benefits of regional or national recognition as well as a history of revenues and profits from the location. Buying an existing franchise is somewhat different than buying any other type of business because you are essentially purchasing the business from the seller (franchisee) and the rights to the franchise from the franchisor (company that owns the franchise.)

Buying and operating a Franchise is different than most of the other purchase or investment decisions you will make in the course of your lifetime. You are getting a business that you will run using a more-or-less established system, not purchasing something physical like a car or a house.   Here are some points to check when considering a  franchise.

Many people who have decided to go into business for themselves recognize that they do not have all the skills and experience they need to get started on their own. Others are not willing to risk their life savings and financial security on an unproven business idea. Still others do not have enough money to start a business on their own and need to obtain financing for any new venture.

You've just finished attending Discovery Day and you like what you've witnessed in this final installment of the franchise courting process. You've decided this is the franchise for you. You sit down with the franchisor at the end of the day and he brings the franchise agreement to the table. There are a few things you should know.

How can you talk about site selection without mentioning "location, location, location"? There, we did it. Now, let's dig deeper.

(Note: This is targeted to franchisees who need a retail storefront, office, or other physical location. Franchisees with a home-based or mobile concept can focus on the challenges involved in those franchise models.)

Becoming a franchisor falls squarely in the realm of business strategies that aren't for the squeamish, yet a handful of Ozarks companies have mastered the art of franchising - with the occasional misstep here and there, of course.

Building a successful franchise that's easily replicated in other markets is no simple feat, and Springfield-area businesses providing corporate support to a growing number of franchisees have learned lots of practical lessons.

I still get asked what seems like an age-old question: Are entrepreneurs born or made?

Let me start by making it clear that entrepreneurship is not in our genes. While some have tried to demonstrate that there is something innate that leads people to pursue entrepreneurial careers, there has never been a study that has found any link between our nature and entrepreneurial risk-taking.

Multi-Unit Operators Are New Majority in Franchising and Private Equity Firms Are Now Major Source for Funding

SAN JOSE, Calif., May 28, 2009 - Franchise Update Media Group (FUMG), the leading industry resource for franchise development, reports that for the first time, multi-unit franchises are the new industry majority, providing growth opportunities in these times of economic uncertainty.

One of the most significant trends in franchising over the past 15 years is the emergence of ex-corporate executives as new franchisees. This trend began in earnest with the downsizing of the early '90s, and has continued steadily--corporate layoffs of white-collar workers have become a way of life in large companies.

As a franchise sales consultant and an individual who grew up with a franchise business (my family owned a Dunkin Donuts for over 2 decades) I am often asked what type of franchise business I would personally recommend to buy. Although all franchise business categories have their inherent advantages and disadvantages, my personal preference would be to buy a service related franchise concept for a number of reasons.

It used to be that when someone turned 55, he or she was considered on the downhill slide into retirement. But today, 55 is the new 35. People in their 50s now realize they’ve got a lot left to offer and experience, and they’re spending their time not thinking about retirement, but figuring out what they want to do with the second half of their adult life.

As any franchise organization grows and develops, it's critical to maintain adequate levels of support, in all forms, to both new and existing franchisees.  While franchise management can offer the best concepts, product lines and brands, without the support of a franchisee action plan to make current franchisees profitable, franchisee success and corporate growth will suffer.

Before investing in any franchise system, be sure to get a copy of the franchisor's disclosure document. Sometimes this document is called a Franchise Offering Circular. Under the FTC's Franchise Rule, you must receive the document at least 10 business days before you are asked to sign any contract or pay any money to the franchisor. You should read the entire disclosure document.

At an International Franchising Symposium in London, Peter Holt made the bold statement to his audience of Franchisors that they needed to understand that their business would fail, and in fact all businesses are bound for failure. Needless to say, there were a few shocked faces in the crowd. He was making the point that it really is just a matter of the number of calendar flips before time strangles any business.

Out of the many businesses out there today, one can find that some of the successful ones are actually franchise businesses. As we all know, franchising is all about business operators paying a sum of fee or premium to operate a certain existing business with the advantage of using the proprietary system, selling a trademarked product or service.

Given the current economic status, you may be wondering about whether your plan to buy a franchise is a good decision. Maybe you're in a corporate job and are fearing the axe. Or perhaps you are simply no longer challenged in your present position and are ready to venture out on your own and follow a proven system, but are hesitant to give up "job security". Well really, is there such a thing as job security?

In my consulting business, I have hundreds of requests for business opportunities or Franchises. Some requests are for work from home, or others the traditional type of business. The most requested franchise opportunity,  is the ones that are affordable and under $50,000.00.

The reasons we need franchises or businesses under $50,0000.00,  are that most of us want to go into business, but can't get the banks to finance us.

Franchising is a wonderful way to go into business for yourself. So many things have already been established for your benefit: branding, marketing, processes, products, systems, etc. Building a business through franchising has been so successful that franchised businesses generate jobs for more than 18 million Americans and account for 10 percent of

As with any other organization, franchisors need to look for certain characteristics in applicants to determine if he is indeed right for the job.  Candidates for priesthood must generally show their willingness to do away with the desires of the flesh.  Army ranger candidates on the same line of reasoning must also show the correct amount of discipline, health and strength the job entails.

The questions a franchisor asks you in the initial phone interview reveal a lot about their motives and values. Listening carefully, and asking your own questions, can help you find a franchisor partner who understands that their success depends on yours - and avoid those who don't. (See last week, Part 1, What You Should Ask the Franchisor.)

You've gone online and filled out the initial qualification form and cleared the first hurdle. Now it's time for that first phone call with the franchisor, where the communication goes from one-way emails to a two-way conversation with questions and, you hope, answers.

As in any job interview, both sides are trying to determine if, beyond the initial paperwork and finances, the potential exists for a long-term partnership profitable to both sides.

The global economic slowdown upturned the financial and business sectors, leaving behind debris of bankrupt companies, jobless workers, and shaky investments. Some companies who are trying to hold on and survive through the debilitating financial crisis are doing everything they can to stay afloat. They make drastic measures, some of which directly affect their employees and workers, such as a big cut in pay and other benefits.

A franchisor’s system-wide marketing program can be a great benefit to a franchisee but also a potential source of conflict when the contributions are mandatory. The real source of contention is not that such a fund exists, and these funds are very common in franchising, but because the franchisor, not the franchisee, decides how it is spent. How do you evaluate whether the marketing program provided will give you a fair value for your money?

An important measurement of the health of any given Franchise company is the rate of growth of their system. Specifically, the franchise system should be growing at a rate that shows it is healthy and vital and is able to attract a number of new people to the system but should not be adding new franchisees so quickly that it will have problems managing this growth.

If you are considering a Franchise as your next career move, you probably already understand a number of the benefits to being a part of a franchise system. However, as each franchisor will offer different levels of assistance, it can be confusing to someone trying to evaluate a potential franchise purchase.

If you are about to become a new franchisee, you may have some anxiety when it comes time to sign the Franchise agreement. You will probably wonder what part of the franchise agreement is negotiable and how you can be certain you’re getting a fair deal.

Every Franchise Company has a standard franchise agreement which states what the franchisor expects from you and what is allowed.

You have decided to start a business that can cover your revenue in the shortest time possible, also generating a healthy amount of profit in the years to come. You can either generate some really innovative ideas and sell it to the market, or why not franchise an already well known business that exists in the market today.

If you are doing research on the franchise industry as a whole or even on one particular franchise company, you will probably run across a number of phrases which are repeated over and over. Are these just clichés, basically without merit, notable only because they are used so frequently? Or are the clichés used so frequently because they are true? Here’s our take on franchising clichés – fact or fiction?

For small, medium and large Canadian businesses that are doing well, Franchising in Canada and beyond may be a viable business strategy. The following guide will outline the basics that any potential franchisor needs to know for success in North America.

Why Franchise?

They say that wisdom comes from experience and experience comes from making mistakes. How true. This article intends to help you gain wisdom from the experience of others rather than having to pay the cost of learning from your own mistakes. These mistakes can represent real dollars--and avoiding them can make a big difference in the total investment you need for your new business and ultimately how profitable the business becomes.

Finding The Right Franchise

Whether it's hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors' services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions - and listen closely to the responses.

Attending a franchise exposition allows you to view and compare a variety of franchise possibilities. Keep in mind that exhibitors at the exposition primarily want to sell their franchise systems. Be cautious of salespersons who are interested in selling a franchise that you are not interested in.

Franchising is a great business model and with so many concepts and brands out there to choose from, research and due diligence are a big part of your assignment.

Of course you'll receive a wealth of information from the franchisor detailing and outlining almost every facet of the system and operations, but there is one other area of research that you owe it to yourself to uncover (many franchises even require that you do this).

Want to own your own business? Are you tired of working for someone else? If you are ready to move your career forward then take a look at The Business Market where you can search Businesses and Franchises for sale. Buying into a business or a franchise can be a wise investment or it can be a hurtful investment. When considering what type of business will be perfect for you, consider what niches you prefer.

With the situation the way it is in today's economy, thousands of talented employees, both white and blue collar, are being downsized at an alarming rate, and, unfortunately, are discovering that the job search they are undertaking is not a very pretty one. Then, the realization sets in. Sadly, this economic climate that we're in is unlikely to change toward the positive anytime soon, and many fear never replacing the big incomes they've been accustomed to.

So, you’ve decided to start a franchise. What now? Once you have made that big leap, it is important to figure out if you and the company are a good fit.  Like any job interviewing process, you have to find out if the company fits your needs. More importantly for the approval process, you need to meet their guidelines to be a franchise owner.

Many people can often find the day to day routine of office life tiresome and somewhat repetitive. It becomes a difficult task to remain motivated and look forward to work in the current economic downturn therefore in many cases people are looking to become independent as they are no longer able to rely on their jobs.

If you are looking for a franchise opportunity, the choice is mind-boggling. There are literally hundreds if not thousands of different types of franchise available for you to invest in, with the same variety in cost. Each has its own benefits and usually the more you pay there is more potential to earn. Franchising has increased dramatically during the last two decades and is quickly being recognized as one of the most effective ways of doing business.

The simple truth is that any business and any idea can be franchised. This is what Canadian Franchises believe in. The word Franchise in the directory in described as a special privilege granted. It was also described as the wave of the future by the futurist. In today’s environment, Franchising is simply a method of doing business through the marketing of a product or service.

What have you personally found has been the best thing about being a franchise owner? What have you personally found has been the worst thing about being a franchise owner? Was there anything that surprised you about being a franchise owner?

These are the survey questions Franchise Trade asked franchisees across the U.S. Franchisees are from franchise systems large and small, in a variety of industries, and located in all regions of the nation.

Whether it's hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors' services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions - and listen closely to the responses.

Duplication and consistency are at the heart of successful franchise systems and retail chains. A brand is strongest when the customer has the same experience each time they visit one of your locations, no matter what time of day or which location. The only way that brand consistency can be accomplished is through training.

Franchise opportunities make the most sound business investments for entrepreneurs that are looking to invest in a business. By working with an established business that has proven its worth and is making a network of franchised business available to others that are looking for a profitable business venture the prospect of owning an already successful and highly recognizable business makes good investment sense.

The waters of the current unemployment situation are running deep leaving many people up the creek without a paddle. There just aren't many jobs available for those looking and the outlook is particularly cloudy for those in higher income brackets such as senior corporate executives.

The lucky ones who were given a severance package or who have savings to fall back on are hoping the economy improves before the money runs out.

The first person to introduce a franchise agreement similar to the ones we have today was Isaac Singer, founder of the Singer Company. His agreements were unique and laid the foundation for the contracts we see today. His sewing machines were big sellers, but what he needed was local people in each territory to service / repair machines and supply spare parts for them. It was too costly and cumbersome to provide this service from headquarters.

Like all things in life, there are always list of the top this or that. Franchises are no different and can be put in list like most popular, range of cost and ease of purchase. Business brokers also have their own favorites to show prospective clients.

If a potential franchise buyer is thinking about buying a franchise, then looking at rankings by various categories makes sense, as it will let them learn a great deal by comparing different franchises.

Two separate press releases -- one from the Office of Advocacy, U.S. Small Business Administration (SBA) and the other from Franchise Business Review -- hold good news for franchise and small business owners alike.Franchise Business Review, a national franchise market research firm, just released a new report which shows that 72% of franchisees believe that their growth opportunity is strong to very strong.

Does A Franchise Meet Your Needs?

Do you look forward to Friday afternoon or Monday morning? Perhaps that's the true litmus test of happiness. If you're thinking about the fact that there's only one day to go before the weekend, when you just got back from lunch on Wednesday, it may be time for a change. Maybe your day-to-day activities simply aren't all that fulfilling. Maybe you're in a rut, and it feels like you have to crawl up the side of the Chrysler building to get out.

In the franchise system, there are two roles: franchisee and franchisor. The two work together to create and expand a successful business concept. So what role does each play in relation to the other?

The Franchisor
The Franchisor has built a successful business system and is willing to sell you the right to use that system, and all that goes with it, to begin your own business.... more



Are You A Potential Franchisee?
Posted by: Admin Post on July 29, 2009
Author: The Franchise Guide

Because a franchise system is a symbiotic relationship, franchisors spend as much time studying you as you researching about them.  Yes you may bring in added income and aid the expansion plans of the company but if you end up not equal to the tasks of managing their company’s name, you may do them more harm than good.

Franchising has become one of the most important and effective business growth strategies in the past quarter century. Although franchise system development dates back centuries to the times when monarchs awarded territories to tax collectors, current franchise business systems date back decades to the Singer Sewing Machine strategy of granting rights to individual business people to sell Singer products in various regions.

Did you know that 97% of all franchises opened during the past 5 years are still open? Compare that to the fact that less than 50% of non-franchised businesses are still open after the same timeframe. Why are franchises so successful?

Franchises are successful because they have created a time-tested and well-developed system for running a business. This system takes into account all aspects of running a successful franchise, and nothing is left to chance. ... more



The Perfect Fit: Women & Franchising
Posted by: Admin Post on July 27, 2009
Author: Darcie Harris

An interesting combination of factors at this time in history may be the reason so many women are turning to franchising to fulfill their entrepreneurial desires. Women’s increased financial power, better education, and corporate experience, combined with their desire for more autonomy and desire to connect with others who share their values make franchising a great fit for many women.

In the early 1900's, Reverend Russell Conwell -- founder of Temple University -- gave a popular speech called "Acres of Diamonds." In it, he said: "Your diamonds are not in far distant mountains or in yonder seas. They are in your own backyard if you but dig for them."

Whether you are a business owner, marketing professional, or other entrepreneur, it is crucial to remember your backyard diamonds are your past and present satisfied customers.

At an International Franchising Symposium in London, Peter Holt made the bold statement to his audience of Franchisors that they needed to understand that their business would fail, and in fact all businesses are bound for failure. Needless to say, there were a few shocked faces in the crowd. He was making the point that it really is just a matter of the number of calendar flips before time strangles any business.

Kentucky Fried Chicken (KFC) is a very well known restaurant in the world. It is rated at number 60 as the world’s most well known brand by BusinessWeek (McDonalds at number 9 and Nescafe, 23).

Its history spans almost 80 years when it started at Corbin (Kentucky-USA), in the 1930s. During this period the United States was under The Great Depression with almost 25% unemployment rate.

When the economy is in the doldrums you may start to wander about your prospects of buying a franchise in a recession.  It is often prompted by the fact that job opportunities are hard to come by and you need to do something. Thus, an idea comes up to turn to franchising.

Three are a number of reasons to consider buying a franchise in a recession:

Finding The Right Franchise

Whether it's hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors' services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams.

Franchising commands a staggering 43% of the nation’s total retail sales and service dollars. It is an employment engine on fire, and produces wealth right through economic decline. You don’t need an MBA to succeed, and everyone is in it together to win. Franchising is the profitable muscle machine that plows through challenge and persistently produces success. And, it consistently achieves record growth across the nation and around the world.

A wise investor, whether he puts money in the stock market or real estate or even collectible figurines, always considers the return he can expect on his investment. This should also be true of Franchise investments. Those investigating Franchise Opportunities should look carefully at the company’s potential ROI. However, since a franchise purchase involves investments of both time and money, you should expect more than you would from a passive investment.

To improve your probability of success, you must take the time to evaluate yourself, your strengths and weaknesses, and, most importantly, the franchisor and the industry in which it operates.

The "fit" is critical. Square pegs in round holes are seldom highly successful--and often fail. Continue to study and learn but gain the strength to be decisive. Don't let a great opportunity pass you by because of fear or indecision.

When you think of becoming a businessperson by making the transition from employee to Franchisee, you don’t generally think in terms of emotional fulfillment. However, in reality, the evaluation of emotional factors should play a significant role in making that final decision to join the world of the capitalist, or remain in the realm of employee.

If you are interested in buying a franchise, it may behoove you to do so through a franchise broker. You should also consider utilizing the advice of a professional franchise consultant.

So, What Exactly is a Franchise Broker?

A franchise broker is simply someone who acts as a liaison between franchisors and franchisees. He gets the two parties together and has the sale of a franchise as his ultimate goal.