Franchising Pros And Cons

Anthony,Th Inflatable Water Game Trampoline bottomline. is to do your homework and make sure the franchis you choos fit your personality, your lifestyle, and your pocket book.


Last week' question from Anthoni R. on how to choos the franchis that would best fulfil hi life-long dream of own hi own busi spark a number of email from other reader want to offer their two cent on the subject.

while other email came from current franchis owner ask me to help them sell their oper to Anthoni RSom folk offer help insight and suggest on how to pick a franchis and a few thing to watch out for..

sound like it' time to updat the old busi card onc again. Tim Knox: Franchis Broker At Larg Who knows,Hmm. mayb I can franchis the concept.

Last week I promis we'd take a closer look at a few of the thing you should look for when consid a franchis opportunity. Keep in mind that there ar thousand of franchis opportun that rang from the low end opportun avail for a few thousand dollar to the high end franchis that cost hundr of thousand of dollars.

the level of train and support offer to the franchisee,Th differ in price is reflect in mani ways: the viabil of the opportunity. the track record and financi stabil of the franchisor, the success rate of the franchisees, and a dozen other factors.

you can becom their franchisee. And your puls doe not have to be that strongA l a lower end franchisor might offer is a train manual and the right to us their compani name. Mani also have veri littl interest in weed out potenti franchisees. The truth is mani ar in busi just to collect franchis fees. Thei have littl interest in whether or not a franchise actual succeeds. If you have a puls and a checkbook..

you do pai dearli for their assistance,Th higher end franchisor have veri strict franchise requir and will not allow just anyon to becom a part of their franchis system. Thei also go to much greater length to ensur the success of their franchisees. Thei offer complet hand hold from start to finish and remain heavili involv in the busi even after the door open. Yes. but as the old sai goes, you get what you pai for.

Her ar a few thing to look for in a franchis opportunity:

Turnkei operation

build and equip the facility,Thi is the most appeal featur of mani franchis systems. Mani of the top franchisor will scout the best locat for the business. hire and train employees, put you through an extens manag train system, then toss you the keys. Furthermore, thei will work close with you for the first few month to help make certain that you know what to do with the kei onc they'v been toss to you.

so be prepar to do much of the upfront work yourself. Often it is up to you to find a location,Th major of franchis don't offer such complet turnkei packages. negoti the lease, build out the space or erect a building, instal the equipment, hire and train a staff etc.

Proven track record and manag system

mani of the lesser-known franchis system offer you a train manual,A mention earlier. mayb a train video, and a few hour of telephon support. Not the best wai to learn how to run a business. A good franchisor will provid you with thorough manag training, either at their facil or onsit at yours. Sinc on of the reason for bui into a franchis system is to tap into their expertis and know-how, thorough train should be a foremost consideration.

Custom wait for the door to open

of course,I don't have the statist in my pocket to back thi up. but I'd bet the farm that everi time a new McDonald' open it door, it' a mere matter of minut befor the first Happi Meal is sold. Mani franchisor spend hundr of million of dollar on nation ad campaign to promot brand awareness. Thi work great for the franchise who can liter have custom wait for the door to open on the first dai of business.

A lwai consid the downsides

usual more of an invest than if the entrepreneur start a similar ventur on hi own. You could open an independ hamburg fast food restaur for a fraction of the McDonald' franchis fee,Ther ar downsid to franchising. Foremost is the high cost of entry. The top franchis opportun requir consider invest on the front end. but you probabl won't sell as mani hamburgers. What you'r bui from McDonald' is not just a fast food restaur that sell hamburgers. What you'r bui is a brand, a reputation, and a proven busi system with readi to eat customers. Be prepar to pai a premium for it.

includ inventory,A noth downsid is that when you bui into a franchis system you often have to pai a percentag of your revenu back to the franchisor. You might also be requir to bui suppli from the franchisor. paperwork, software, comput systems, and anyth els the franchisor decid that thei should suppli to you.

the franchisor does. You have veri littl say-so in run the business. You must follow their process and procedur without variation. And should you decid to get out of the busi you mai not even be allow to sell the franchis to just anyone. The new owner would have to be approv by the franchisor befor a deal could be made finalA nd there in li the biggest downsid of all. When you bui into a franchis system you don't control your business..