franchise 12.doc

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It's probably not a matter of whether it's a cheap franchise or not, but rather a matter ofcaring about keeping all franchisees happy. An advisory board can indicate a willingnessto listen and learn from franchisees. However, if the franchisees on the board are hand-picked by the franchisor, they may do nothing of any consequence.

A well-rounded franchise advisory board should include people who own multiplefranchises as well as people that only own a single franchise. The entire spectrum(inclusive of both large and small markets) needs to be represented. The diversity of theboard ensures that as many voices are heard as possible, regardless of the cost of thefranchise itself.As you research the franchises, take note of cheap franchise opportunities. Make sure youinclude all the costs associated with starting a franchise, however. If low start-up costsare evident but the royalty fee is much higher than normal for that industry, you need tobe aware.

Create a chart listing the various charges and expenses you'll incur over the first fewyears to get an idea of the total cost of a business. The cheap franchise opportunities thatdon't make any profit could end up costing you more in terms of lost opportunity.Whatever money you invest in a cheap franchise is money you can't invest elsewhere.Choose wisely and investigate and understand all costs.The low cost franchise opportunities which are experiencing tremendous growth haveboth disadvantages and advantages. The advantages are obviously that consumers like theproduct and the name will become even more known as the growth continues (this is agood thing as it fuels the growth in your business). It probably also indicates a soundfinancial structure. On the other hand, the franchisor organization is probably growing as

fast as the individual franchises and that may cause some difficulties. In any fast growingorganization, some things get lost. If you are brand new to the small business franchise,you may not get the support you need and may feel overwhelmed by the fast growthexpected of you.If you are looking for a stable and safe choice to your investment plan, considerpurchasing a franchise. WSI is one of the finest and largest franchise companies in theworld. Their core business deals with internet marketing and helping their customersbuild better virtual businesses. Their franchises are amongst the most successful that youcan find online. WSI has been in business for 10 years, making them a highly regarded,long lasting company that you can rely on to be around for you and your franchise.

As a WSI franchisee, you will get certified training and become skilled at effectivelyserve clients with their website marketing strategies. There is no merchandise orinventory to keep track ofall you will require is a computer and the internet to operateyour franchise.WSI, headquartered in Toronto, Canada, is ranked as the #1 internet Services Business inthe world and the 4th fastest-growing International Franchise. With systems that have


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been developed, utilized and proven by over 1500 Internet Consultants in 87 countriesworldwide, WSI delivers thousands of Franchise for sale opportunities to small- andmedium-sized businesses annually. Visit www.wsicorporate.com for more information.

Here are the top 10 reasons to select a franchise opportunity if you want to own your own

business.

1. Track Record of Success. Any good franchise company has developed a method ofdoing business that works well and produces successful results. Even better, theyrerequired to provide you with a great deal ofinformationin their required disclosures soyou can investigate and verify the results with existing franchisees prior to making yourfinal decision.

2. Strong Brand. One of the biggest advantages of franchising is that the company isbuilding abrand on a regional or national basis that should have value in the eyes ofcustomers youre trying to attract.

3. Training Programs. A good franchise company has training programs designed tobring you up to speed on the most successful methods to run the business. They shouldalso have reference materials to assist you in dealing with whatever comes up whileyoure running your business.

4. Ongoing Operational Support. Franchise companies have staff dedicated toproviding ongoing assistance to franchisees. Youre not alone when youre building andrunning your business, and you can always call on experienced people when you hit arough spot or want to share new ideas for growing the business.

5. Marketing Assistance. The franchise company has marketing assistance to provideyou with proven tools and strategies for attracting and retaining customers. Usually, thestaff helps you develop the actual marketing plans and budgets for your grand opening aswell as your ongoing efforts to market your business effectively.

6. Real Estate Assistance. Most franchises have manuals and other documentation, aswell as staff, to help you find the right site and negotiate the best possible deal on yoursite. This is a very important advantage that can hold costs down and provide the bestpossible chance of success in any site-driven business.

7. Construction Assistance. Franchise companies can also provide a wonderful benefit

in helping you design the layout of the business and select the right contractors to do yourbuild out, as well as making sure you get the exact mix offurniture and equipment youneed to maximize the efficiency of your initial investment.

8. Purchasing Power. A good franchise can take advantage of the buying power of theentire system to negotiate prices for everything you need at significantly lower levelsthan you could achieve as an independent operator. This applies not only to initial
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furniture and equipment purchases, but also to the supplies, inventory, uniforms andeverything else youll need on an ongoing basis.

9 & 10. Risk Avoidance. This one is so important that well call it both 9 and 10! Thebiggest reason to buy a franchise is that, if youre smart, it will help you avoid much of

the risk of starting a new business. Make no mistakeyou have to do your due diligence,but if you do, you can determine with a fair amount of certainty what happen if youbecome a new franchisee.

As you look at this list, it not only shows a number of reasons to think about getting afranchiseit also shows you just some of the major challenges youll face if you have tocreate all these things yourself in an independent business. You do have to pay fees in afranchise that you could avoid in an independent business, but its kind of like the guy inthe Fram Oil Filter commercials who says, You can pay me now or you can pay melater. You can pay the franchisor the fees, or you can pay for many expensive mistakesby not learning the lessons of others that have gone before you. Using a franchise to meet

your goal of starting a new business is a wonderful approach for most people, for allthese reasons and many more.

Jeff Elgin is the Buying a Franchise coach at Entrepreneur.com and has 25 years of

experience in franchising, both as a franchisee and a senior franchise companyexecutive. Hes currently the CEO ofFranChoice Inc., a company that providesfree

consultingto consumers looking for a franchise that best matches their needs.

The franchise is the agreement or license between two legally independent partise whichigives:aperson or group of people (franchisee) the right to market a product or service using the

trademark or tradename of another business (franchisor) Franchising is not a business itself, but a way of doing business.It is essentially a marketing concept an innovative method of distributing goodsand services. It is also an extremely successful and rapidly growing aspect ofAustralia's small business sector.Franchising is a business relationship in which the franchisor (the owner of thebusiness providing the product or service) assigns to independent people (thefranchisees) the right to market and distribute the franchisors goods or service,and to use the business name for a fixed period of time. The InternationalFranchise Association defines franchising as a continuing relationship in whichthe franchisor provides a licensed privilege to do business, plus assistance in

organising training, merchandising and management in return for a considerationfrom the franchisee."Franchising" is used to describe a number of business models, the mostcommonly identified of which is business format franchising. But there areother models which are also dependent on franchise relationships. These include:1. Manufacturer-Retailer Where the retailer as franchisee sells the franchisor'sproduct directly to the public. (eg. New motor vehicle dealerships).2. Manufacturer-Wholesaler Where the franchisee under license manufactures
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and distributes the franchisor's product (eg. Soft drink bottling arrangements).3. Wholesaler-Retailer Where the retailer as franchisee purchases products forretail sale from a franchisor wholesaler (frequently a cooperative of the franchiseeretailers who have formed a wholesaling company through which they arecontractually obliged to purchase. (eg. Hardware and automotive product stores).

4. Retailer-Retailer Where the franchisor markets a service, or a product, undera common name and standardised system, through a network of franchisees. Thisis the classic business format franchise.The first two categories above are often referred to as product and tradenamefranchises. These include arrangements in which franchisees are granted the rightto distribute a manufacturer's product within a specified territory or at a specificlocation, generally with the use of the manufacturer's identifying name ortrademark, in exchange for fees or royalties.The business format franchise, however, differs from product and tradenamefranchises through the use of a format, or a comprehensive system for the conductof the business, including such elements as business planning, management

system, location, appearance and image, and quality of goods.Standardisation, consistency and uniformity across all aspects are hallmarks of thebusiness format franchise.Business format franchising is today the fastest-growing segment of franchisingand has spread to virtually every sector of the economy in Australia. It hassignificantly more franchise systems, more outlets, more employees and moreopportunities than product and tradename franchises.Business format franchising requires a unique relationship between the franchisor(the owner of the system) and the franchisee (the owner of the individual outlet),which is commonly referred to as a "commercial marriage".This ongoing business relationship includes the product, service and trademark, aswell as the entire business concept itself from marketing strategy and plan,operational standards, systems and formats, to training, quality control andongoing assistance, guidance and supervision.In short, it provides small business (the franchisee) with the tools of big business(provided by the franchisor).It is also a Win-Win relationship where the franchisor is able to expand its marketpresence without eroding its own capital, and the franchisee gains through accessto established business systems, at lower risk, for their own commercialadvantage.The "commercial marriage" between franchisor and franchisee is ultimately alegal relationship, with the full obligations and responsibilities of both partiesoutlined in a highly detailed franchise agreement. This commercial contract variesin length and conditions from one system to the next, such that it would be almostimpossible for any two franchise systems to have identical agreements.By nature of the relationship, the franchise agreement will be imbalanced infavour of the franchisor, as the franchisor must at all times remain in control overcertain standards critical to the ongoing success of the business format.

Franchise l phng thc kinh doanh m theo , Bn nhng quyn (Franchisor,


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doanh nghip sn xut hoc mua bn hoc dch v) cho php Bn nhn quyn(Franchisee, doanh nghip kinh doanh c lp) s dng nhn hiu hng ha, khuhiu kinh doanh v b quyt kinh doanh hoc quy trnh vn hnh h thng kinhdoanh. Ngc li, Bn nhn quyn phi tr ph ban u, gm: ph nhng quyn(Franchise fee), ph lnh th (territorial fee) trong trng hp k hp ng qua

Bn nhng quyn ca khu vc) v ph bn quyn (royalty fee) khi kinh doanhhoc cng c mt s h thng nhng quyn thu ph c nh tr mt ln trongthi gian nhng quyn.Bn nhng quyn s em li cho bn nhn quyn s dng nhn hiu. Nhngtrong mt s trng hp, Bn nhn quyn vn phi chu s kim sot trong qutrnh kinh doanh di nhn hiu ng k.

Advantages Of The Franchise Business And Why They Are ConsideredSuch Great Opportunities.

The first advantage to business franchises is that you will have a rather high chanceof success. This is because when you buy a franchise business, you will be buyingan established concept that is already successful. It is a proven fact that as afranchisee, you will have a better success rate than people who choose to start oftheir own businesses.

Apart from that, the kind of support you will receive when you invest in a franchiseopportunity is invaluable. You won't just get help starting a franchise business. Withthe right group, you will be receiving continued support to ensure that yourbusiness does well. Plus, with a big name backing your business, you will alsoreceive the best in marketing and benefit from their large scale marketingcampaigns. Whether it's help with training, business know-how or just equipment,the kind of support you will get from investing in a business franchise can't beattained anywhere else.

Picking up a franchise is also considered a great business opportunity because youwill have the buying power of the parent company. Supplies can be bought in bulkand you will be saving a lot. Another advantage of being part of a franchise ishaving the franchisor's brand name. With a big brand name, you will have instantrecognition and a large customer base to start off with.

Due to all franchise advantages, it is considered extremely profitable especiallywhen you sign up with a big franchise business. Unfortunately, with all theadvantages there are a few disadvantages as well. Some of you may prefer to beyour own boss and certain franchise business insists on running the entire show. Ina sense, it can be their way or the highway which does cause a certain amount offrustration.

The royalty costs for a franchise business can also be considered a disadvantagebecause they will be taking a cut out from your profit every month. And dependingon your contract the franchisor may decide to charge additional fees for servicessuch as advertising and so on. So before you sign your contract, check for any fineprint on additional costs as it is one of the major disadvantages of buying afranchise

Hot Franchise Opportunities


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A franchise is a license to use a trademark in exchange for payment of fees orroyalties and involves some material assistance from the trademark owner. Thetypical business franchise provides the franchisee with a complete operatingsystem that includes all of the systems, techniques, practices and sometimesequipment that the franchisee needs to get up and running and continue running.Usually, the franchisor also provides a marketing program and other support

services.Franchise businesses account for about one third of total retail sales in the UnitedStates, 10% of all fulltime businesses with employees, and franchises provideemployment to over 7 million Americans. The average investment, before realestate expenses in over 75% of franchises, is less than $250,000. For this reasonalone, franchises are appealing to many entrepreneurs.

There are a few franchises that are new, up-and-coming and are hot in thefranchise offerings right now.

Health Career Agents provides healthcare providers with unique employmentplacement services through independent channels. The capital requirement neededto invest is $27,900.

Right at Home is a company that offers in home care and assistance and isdedicated to improving the quality of life for its clients. The capital requirement toinvest is $50,000 - $60,000.

FranNet is the world's largest network of franchise consultants. Consultants atFranNet assist new franchisees with every step of setting up their own franchisebusiness. The capital requirement needed to invest is $30,000.

Altoids gum is being sold from designer candy machines. You can own these gumdispensers as a franchising opportunity. The capital requirement needed to invest is$16,000.

Diet Center is advertising that it is ideal for the female entrepreneur population.They are a leader in the weight loss industry. The capital requirement to invest is$29,292 - $55,374.

Mathnasium is a learning center that focuses purely on improving student's mathskills. The capital requirement to invest is $41,000 - $65,200.

Vendstar vending machine sells to individuals who are interested in businessopportunities. The capital requirement needed to invest is $2,500 - $25,000depending on how many machines you want to own and operate.

Ace Hardware has been in business for over eight decades and is still on the hot listof franchise opportunities. The capital requirement needed to invest is $150,000.

Protect Painters provides painting services to residential and light commercialcustomers. The capital requirement needed to invest is $38,000 - $44,250.

Discount Boxes, Inc. supplies moving supplies and boxes to people who are moving.The capital requirement needed to invest is $15,000.

Clix is a unique retail portrait and on-location digital photography event company.Capital requirement needed to invest is $237,000 - $298-000.


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Ubuildit assists owner-builders to complete their self-managed new construction orsignificant remodel project. The capital requirement needed to invest is $100,000 -$225,000.

SmartBox is a portable storage company similar to PODS. The capital requirement

needed to invest is $350,000 and you must own 5 units.360 Degree Solutions LLC provides workshops, leadership training and offersbusiness development consulting. The capital requirement needed to invest is$10,000 - $25,000.

Of course there are franchise opportunities out there that will fit your skills,interests, passions and budget. Think of the success of McDonalds and Burger Kingand other restaurant franchises. If you're interested in becoming your own boss,and making money for yourself, then perhaps owning a franchise is for you.

A franchise can present a great opportunity for business.

A lucrative option for starting your own business is that ofopening a franchise. For a set fee, you purchase the rightsto offer specified goods or services, according to setguidelines, in a set location, for a specified timeframe.

In purchasing franchise rights, you have bought a provenmethod for operating a business and that method has beentried and proven to be successful in certain markets andgeographic locations. When purchasing franchise rights, youhave to sign a contract to offer the specific goods orservices, according to the contract specifications.

McDonalds, Wendys, Burger King and KFC are widelyrecognized and popular franchises in the food industry.Franchises are not limited to the food industry. There arefranchises available in almost every industry.

Molly maid and Roto Rooter are only two of the manyfranchises available in the home repair and serviceindustry. Franchises can also available in the car serviceindustry. You can find every kind of franchise businessfrom car washes and oil change businesses to gas stationsand convenience stores.

Because all of the groundwork is already done, and themethodologies are proven, Franchises are a great way to gointo business. The formula is already verified to besuccessful, which means that if you follow the specificsteps, and adhere to the agreement, youre bound to achievethe same level of success.

A few things you have to know when you are considering thepurchase of franchise rights include: How much money will you have to invest? Thepurchase the franchise rights can be expensive and you mayneed to get a loan.


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Are there monthly or annual franchise fees involved? Will you be granted exclusive territorial rights tothe area? Will you receive support from the corporate officeand, if so, how much?

Research is a must if youre considering buying in to afranchise to start your business. There are many otherthings involved and that must be considered before you makeyour decision.

While franchises can be great business opportunities, youhave to do your homework in preparation. You should nevergo into a franchise deal without taking the properprecautions and finding an opportunity that gels with youand your personality. Derrick Kaldenbach is the webmaster and developer ofFranchise Ins , a practical resource for Franchise information. For more informationabout buying, owning, and running a franchise, go to http://www.franchiseins.com/

Seven Secrets to Buying a Franchise

There are great benefits to owning a franchise. You often can sell goods andservices that have instant name recognition and can obtain training and ongoingsupport to help you succeed.

But be cautious before you sign on the dotted line.

1. Know How Much You Can Invest - A franchisor may tell you how much you canafford to invest or that you can't afford to pass up this opportunity. Beforebeginning to explore investment options, consider the amount you feel comfortableinvesting and the maximum amount you can afford.

2. Know What Type of Business is Right for You - A franchisor may attempt toconvince you that an opportunity is perfect for you. Only you can make thatdetermination. Consider the industry that interests you before selecting a specificfranchise system. Ask yourself the following questions: Have I considered workingin that industry before? Can I see myself engaged in that line of work for the nexttwenty years?

3. Realistically Evaluate Your Own Background and Skills - If the industry does notappeal to you or you are not suited to work in that industry, do not allow afranchisor to convince you otherwise. Spend your time focusing on those industriesthat offer a more realistic opportunity.

4. Take the Time to Comparison Shop -- Talk to or visit several franchisors engagedin the type of industry that appeals to you. Get answers to the following questions:* How long has the franchisor been in business? * How many franchised outletscurrently exist? * Where are they located? * How much is the initial franchise feeand any additional start-up costs? * Are there any continuing royalty payments? *How much? * What management, technical, and ongoing assistance does thefranchisor offer? * What controls does the franchisor impose?

5. Get Substantiation for Any Earnings Representations -- Some franchisors may tellyou how much you can earn if you invest in their franchise system or how currentfranchisees in their system are performing. Be careful. The FTC requires that
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franchisors who make such claims provide you with written substantiation. Makesure you ask for and obtain written substantiation for any income projections, orincome or profit claims. If the franchisor does not have the required substantiation,or refuses to provide it to you, consider its claims to be suspect.

6. Avoid High Pressure Sales Tactics -- You may be told that the franchisor's offering

is limited, that there is only one territory left, or that this is a one-time reducedfranchise sales price. Do not feel pressured to make any commitment. Legitimatefranchisors expect you to comparison shop and to investigate their offering. A gooddeal today should be available tomorrow.

7. Study the Franchisor's Offering -- Do not sign any contract or make any paymentuntil you have the opportunity to investigate the franchisor's offering thoroughly.The FTC's Franchise Rule requires the franchisor to provide you with a disclosuredocument containing important information about the franchise system. Study thedisclosure document. Take time to speak with current and former franchisees abouttheir experiences. Because investing in a franchise can entail a significantinvestment, you should have an attorney review the disclosure document andfranchise contract and have an accountant review the company's financialdisclosures.

Franchise Opportunity and Franchise Opportunities

Franchise opportunities are becoming more appealing to people who want to runtheir own business. People who have heard of a franchise opportunity usually findout about them through their friends and/or business classes. The people who aremost interested in franchise opportunities are ones that know what chains aresuccessful and which are going to make worthy investments. No one wants to puthis or her money on a franchise opportunity that is going to go belly up in sixmonths. If you are considering franchise opportunities, make sure you consultbusiness owners who run them and how to be successful when doing it.

Franchise opportunities might not come easily, but they don't have to be extremelydifficult at the same time. Though it is very beneficial to have background andexperience under your belt when it comes to a franchise opportunity, doesn't meanit is necessary. For example, if you are familiar with working at a popular fast foodchain, you know the moneymaking abilities that can take place when you take holdof franchise opportunities. When you make a franchise opportunitya reality, thepossibilities are endless and can make you more successful than you everimagined. After all, you know what people like-the food, the taste, what makes thechain of restaurants so popular, and why people would want to come back for more.You would probably consider the chain you have experience from when workingwith franchise opportunities.

Think about it, people in America love to eat. It is part of the American way andculture. People express themselves through fellowship and food. It is a great part ofwho we are, so to take this concept and run with it, would be to take a franchiseopportunity and make it work. Maybe you live in a small town where restaurantsare limited. Maybe you have a desire to see your favorite restaurant thrive in yourlittle town, but no it won't be making any headway soon. Why not start your ownrestaurants through franchise opportunities instead of waiting for something thatmight not happen later down the road?

Put your best foot forward and take a chance with a franchise opportunity. Talk withpeople who are in charge of their own franchises and see how they made the
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franchise opportunities work for them. Ask them to be honest about the ups anddowns of a franchise opportunity and what it all entails. Be sure to know that takinga franchise opportunity is not going to make you money overnight. Just likeanything else, in order for franchise opportunities to blossom, it takes hard work,dedication, and perseverance. You may have a rough start, but if you include Godin on your plan and allow Him to lead you in your franchise opportunity endeavors,

you may start to see the fruit of your labor. Good luck with your franchiseopportunities!

More About Franchise

Many people have been considering owning and managing their own business. Gettinginto business is their way of achieving their financial goals and needs. Some are alsoconsidering getting into the franchising field.

What is franchising? It is the method of entering a franchise agreement wherein twoparties agree to do business with contractual provisions. The setting would be, one party

has an idea of the business while the second party will do the business of the other partyand pay for its name and reputation.

Many prefer franchising than setting up their own name. That is because they do benefitfrom it. One benefit it provides is the speed of expansion that one may get once he hasentered the franchising world. There is already a brand image since the company willhave one common system that will be followed.

Franchisees may also enjoy from discounts on the supplies and raw materials needed inoperating the business. Franchise networks buy in bulk, which makes more room forgreater discounts among franchisees. Therefore, if the supplies and raw material are

cheaper it will be easier to compete with other establishments.There is also a greater opportunity for a higher profit. The return of investment is highersince the return of revenue will be lower. This means that the percentage of pure profit ishigher.

Franchisees that are within the network are able to offer knowledge that has been learnedbased on their experiences in the field. This is a knowledge that is not learned in businessschools. Getting connected with experienced franchisees can also help in expanding thebusiness overseas where there are greater opportunities.

Here are some tips to consider when getting into the franchising business.1. Franchising as a business is a different kind of business opportunity. It is onlyrecommended that a person ask questions first before entering franchising. It is alsoadvised to attend workshops and seminars before entering it. The person should gatherenough information regarding the business he would like to franchise.


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2. Seek some advice. When in workshops and seminars, the person should grab theopportunity to seek advice from those who have enough experience with franchising.Seminars are a good way to connect with many franchisees and they can help a lot ingiving advices that is based on their experiences.

3. A person that is considering the franchise business should also beware of scams.People who enter this field should be aware of the pitfalls and challenges that may beencountered in the process. There may be many offers for franchise once they havelearned that the person is interested in it. However, he should be careful enough inchoosing which business to franchise. A research on the stabilty of a certain company isrecommended. He can also try a background check of the person offering the deal.

4. The person should be able to learn lessons from past decisions made in this field.Lessons learned might not be from him but from others who have encountered wrongdecisions. One major lesson that has been learned by franchisees is that big companiesand brand names offer limited and flexible negotiations in the franchise system.

When entering into the franchise business, there will be a lot of opportunities for greaterprofit. However, one should also be prepared on the challenges that may be encountered.It is important that one is dedicated and prepared in order for the franchise business to besuccessful.

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