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        Buying a Franchise  

by G.Entp2

This guide will help you evaluate whether buying a franchise is right for you. It will help you understand your obligations as a franchise owner. Many people dream of owning and running their own business but are often let down by the reality of doing so. 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. A franchise typically enables you, the investor or "franchisee," to operate a business. By paying a franchise fee, which may cost several thousand pounds, you are given a format or system developed by the company ("franchisor"), the right to use the franchisor's name for a limited time, and assistance. While buying a franchise may reduce your investment risk by enabling you to associate with an established company, it can be costly. You also may be required to relinquish significant control over your business, while taking on contractual obligations with the franchisor. Outlined below are some of the main points you need to consider before buying a franchise: - Franchise fee: Your initial franchise fee, which may be non-refundable, may cost several thousand to several hundred thousand pounds. - Royalty payments: You may have to pay the franchisor royalties based on a percentage of your weekly or monthly gross income. You often must pay royalties even if your outlet has not earned significant income during that time. In addition, royalties usually are paid for the right to use the franchisor's name. - Advertising fees: You may have to pay into an advertising fund. Some portion of the advertising fees may go for national advertising or to attract new franchise owners, but not necessarily to target your particular outlet. - Controls: To ensure uniformity, franchisors typically control how franchisees conduct business. These controls may significantly restrict your ability to exercise your own business judgment. - Terminations and Renewal: You can lose the right to your franchise if you breach the franchise contract. In addition, the franchise contract is for a limited time; there is no guarantee that you will be able to renew it. A franchisor can end your franchise agreement if, for example, you fail to pay royalties or abide by performance standards and sales restrictions. If your franchise is terminated, you may lose your investment. Franchise agreements typically run for 15 to 20 years. After that time, the franchisor may decline to renew your contract. Before investing in a particular franchise system, carefully consider how much money you have to invest, your abilities, and your goals.

Choosing a Franchise Home Business Opportunity  

by Dennis Hampton

When you think of the word franchise, most people immediately conjure up a chain restaurant or similar store. However, there are actually several home based franchise opportunities that are currently available. These businesses have been proven to be money makers, but not all are created equal. Here's a quick guide to help you evaluate a franchise home based opportunity.

First, you will need to find out how long the company has been in business. This is very important, especially for first time business owners who are not familiar with creating solid revenue streams. An established franchise can be very beneficial in helping you get through the pivotal first two years of operation. This is the time period in which most home based businesses fail, and if you are working with a company that has a proven revenue stream, you can greatly reduce your risk of failure.

Next, you will need to determine how many similar businesses there are in your area. This may depend on the overall size of your city, but generally, if there are already several franchises in operation in your area, you would be better served with a different opportunity. It is important to find a home based franchise that will allow you to get started without having to worry too much about the competition. Granted, if you live in a very large city, this is not as large of an issue, particularly if there are no other similar companies within a 10 mile radius of your location.

After you have gone through the basics, you will need to move onto to how the franchise will help you run your home based business. Will they provide you with all the necessary equipment that you will need to get started or will you be responsible for providing your own equipment? This is very important since the start up costs for a new business can be quite high. Make sure that you understand exactly how much money you will need to spend before the business is ready to start.

It is also vital to determine who will be in control of the actual business. After all, you are starting your own home business so that you can be your own boss. You don't want to have to deal with a company that will be micromanaging your every move. However, at times, some guidance can be useful, so you will need to find the right balance that you are comfortable with.

Although the overall costs can be higher to start a franchise home based business, there are several benefits, such as being able to work with a proven revenue maker. This can be a very good starting point before you really go out on your own and start your own business from scratch. You can look at this as a training process, where you get what you need to get started, and the ability to learn how to run a successful business.

Quick guide to starting a franchise  

by Gianna Bruno and Ashley Gimour

Finding and exploring a franchise opportunity can be stressful. Finding the right franchise for your goals and objectives takes diligence and focus. Many prospective franchisees don't even know where to begin the process. A few key points to keep in mind when searching for a franchise opportunity is that are different steps you will come across. The exploring and curious phase, understanding franchise systems and operations, and beginning the process with confidence and knowledge will be some of the key factors.

Being exploratory and curious about franchises is very common. Many people are interested in franchises, but they don't know where to begin their search. The Franchise Market is an excellent source for interested franchisees as well as marketing franchisors. The Franchise Market offers a wide variety of franchise for sale listings. The Franchise Market also gives the franchisees detailed information on the franchise. In this process you can easily find information as well as get some contacts of franchisors to help you grasp a better concept of what this process might entail. Understanding franchise systems is very important because the process might seem a little abstract to begin with. Finding a place to research and find a franchise that fits you is important. After finding a franchise, you can begin the process of getting information from the franchisor. Franchisors are extremely helpful throughout the process. I strongly recommend asking questions and getting advice from successful and well established franchisors. Choose the perfect franchise for yourself. After intense time spent of finding information about franchises, you will get to the point where you know the right franchise for your situation. Once you choose a franchise, take the next steps as to sign a contract and proceed with your plan. A business plan is something to keep in mind not only when starting out, but also throughout your endeavors. Becoming a franchisee is a very positive step to take within the business process. Every successful entrepreneur takes advice from others with successful business opportunities. Although this process might be exhausting, keep in mind that moving forward in the franchise and business industry is crucial for survival.

Do plenty of homework and make sure the business model is right for you. Remember that the franchise system enables someone to start up on their own and lock-in to a huge support network. It eliminates much of the stress, worry and uncertainty of going it alone - which can often be a lonely and highly risky route. But also remember franchising is not a quick fix. It requires hard work and commitment. If you would like to enquire about a franchise opportunity, please contact Martin + Co.

 Franchise Information You Need
By James Hunaban

If you are thinking about owning a franchise then there are some things that you must think about before starting out on the journey itself. It would actually be best to consider what's all involved with owning a franchise of a company before you actually contact the company you'll be working with because there may be a lot of hidden rules and regulations involved that it may not even be worth it in the first place. Nevertheless, though, if you are set in stone about wanting to purchase a franchise of a company name then there are definitely some issues that must be cleared with the company before you sign into any sort of agreement!

The Fees

The first and foremost issue that you'll probably want to take care of when entering into any franchise agreement is what fees you'll be paying. Most companies require that a franchise owner pay an initial fee to be able use the company's name and reputation whenever they want, but there are also some other fees that they must pay as well. For example, what is usually required is the franchise owners must pay a percentage of their profit to the company itself in return for being a franchise. Even though this percentage may only be 1-2%, it still could take a big chunk out of the profits. What you may want to get in writing is exactly how much you'll pay to the company, whether it will be a percentage of the gross or net profits, and whether or not any fees will be required the first year considering that many businesses do not even turn a profit until the second or third year!

Renewal Agreements

When signing into a contract with a company for a franchise one of the things you may be required to agree upon is exactly how long that contract will be and how long subsequent contracts will also be. Most companies require that a franchise owner sign a contract for at least 10-15 year agreement, but then make subsequent contracts half of the duration that the first one is signed for. However, you may also want to know what exactly will happen if you somehow breach the contract and bankrupt the franchise before the contract is up. There may be hefty fines and fees involved, but getting all of the specifics in writing is the best route any franchise owner can take!

Location

One important issue with franchises and all company branches is the location of each one. Many companies have stipulations that are set so that no company branch can be in the way, or in a physical location that is close to another of the same branch. This rule of thumb probably also goes for franchise businesses, but this is an issue that you'll want to discuss as well!

There are plenty of other things that you must discuss with the company headquarters itself before jumping on any bandwagon or riding on cloud nine! Securing your franchise is very important and making sure you know all the rules and regulations goes along with that!

Financing your Franchise

About ninety percent of new franchisees seek bank or alternative financing to get their businesses off the ground. There are many funding options to consider outside of the traditional banks such as credit unions, government programs, state programs and other niche programs designed especially for minority groups

Getting Started on Your Business Plan
The writing of a business plan can be a daunting process, especially for those who aren’t very confident about their writing skills. Nevertheless, every new business venture, including franchises, requires a business plan to be written at the early stages of the franchising process.

Creating the Business Plan
Piecing together the various section of a business plan will take time, patience, and a lot of thinking and re-thinking about your franchise venture and its future success. Whether you are writing your plan from scratch, following an established format, or using a computer-generated template, the anatomy your business plan should contain these seven key sections.

An Overview of the Small Business Administration (SBA) & Loan Programs
The SBA was founded in 1953 and is the largest government-backed funding agency in the United States, providing an array of financial assistance programs to small businessess, including specialized programs for women, minorities and armed forces veterans. There are three loan options to fund your franchise venture.

SBA Basic 7(a) Loan Program: Guidelines
The 7(a) loan is the most basic and most common type of SBA loan available to all start-up businesses, including franchises. Lenders who participate in offering this loan do so as per guidelines of the SBA who in turn issues a guaranty to the lender for a portion of the loan.

SBA Microloan Program: Guidelines
The Microloan Program provides small businesses with loans of up to $35,000 for start-up or ongoing funding needs. Under this program, the SBA makes funds available to local, nonprofit community-based lenders (called intermediaries) who re-distribute the funds to eligible borrowers.

SBA Prequalification Program: Guidelines
The Prequalification Program uses intermediary organizations to assist borrowers with their loan application packages and making them suitable for submission to lenders. This program targets low-income and disabled individuals, new and emerging businesses, veterans, exporters, rural, and specialized industries.

Funding Your Franchise in Canada: The Canadian Small Business Financing Program
The Canada Small Business Financing Program was established in 1999 and its goal is to increase the availability of loans and capital leases to assist and improve Canadian small businesses. Funded by the majority of financial institutions and select leasing companies, the federal government guarantees 85% of the lender’s losses in the event of borrower default.

Has Your Franchisor Registered With the Franchise Registry?
The Franchise Registry is a service that benefits both franchisors and franchisees, provided by FRANData, an organization that supplies objective information and analysis on and about the franchise industry. The Registry lists names of franchise companies whose franchisees enjoy the benefits of a streamlined review process for SBA loan applications.

Franchising for Veterans: The VetFran Program & the VBOC
For veterans retiring from duty, the transition from military to civilian life can be unsettling and frustrating. While many veterans in the past may have considered buying a franchise, the uncertainty, unfamiliarity, and financial requirements of business life can quickly strike franchising off the list – until now.

GE Franchise Finance
GE Franchise Finance is a leading lender for the dynamic franchise market in the U.S. and Canada, providing financing for many nationally known concepts in the restaurant, hospitality, petroleum and automotive industries.

Butler Capital
Butler Capital is a national, direct lender offering competitive fixed-rate loans and leases for amounts that generally range from $25,000 to $1.5 million – all with uniquely flexible terms. Unlike conventional lenders, brokers, or government agencies, at Butler Capital you’ll receive credit decisions typically in 72 hours or less.

Edlo Leasing
Established in 1993, Edlo has been providing leasing and financing options for franchise concepts and general business equipment leasing since 1994.

Popular Leasing
Popular Leasing offers small business financing, franchise and municipal real estate loans with the quality, service, and simplicity of a leasing company. With their bank partnership, they can assist you with a wide spectrum of products so all your needs can be fulfilled from one source. 

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