Many things can determine franchise business profitability, but there are specific key performance indicators (KPIs) that can help give a more accurate picture of how well your franchise is doing in terms of showing a profit.
•Are your living costs being met? In other words, do you have enough money…
Read More
Franchises are different; therefore, franchise agreements must by necessity be different in scope and tone. However, there are certain provisions that are or should be included in most franchise agreements.
•Obligations of both franchisors and franchisees concerning business operations must be spelled out, in as complete detail…
Read More
A Certified Franchise Executive (CFE) is a person who has chosen to take his career in franchise to the next level. He does this by taking a total of 3500 hours of continuing education classes which include courses in experience, participation, core, and electives. Experience and participation classes count for…
Read More
People often choose a franchise as a means of starting a small business. This is because much of the “groundwork”—finding a site, stocking the business, and other things, has already been done, making it easy for the franchisee, especially if it is someone who is just starting out, to get…
Read More
If you are considering investing in a franchise, there are quite a few things you are going to have to accomplish before you can even think about quitting your job. Some of them may be easier than others, but you should concentrate on having fulfilled them all before you turn…
Read More
There are distinct differences between franchising and licensing businesses. The chief one concerns establishment and operation costs, but there are others as well. It is important to know about as many of these differences as possible before deciding which one is best for you.
Let’s talk about the difference that…
Read More
Here is a concise, “pocket-guide” on How Franchising Works.
The Merriam-Webster dictionary defines a “franchise” as “the right or license granted to an individual or group to market a company’s goods or services in a particular territory”; also “a business granted such a right or license”.
A “franchisor” is defined…
Read More
You’re asking yourself, “What Franchise Makes the Most Money?” Good question.
A person can’t really point to a particular franchise and say, “There’s the money maker,” because the fact is any franchise can be profitable. So, instead of trying to determine which franchise will make you richer faster; look for…
Read More
The question of which franchise should you buy is definitely a personal one. Only you know what you do and don’t like to do, what you are good at, and what you will honestly admit that you absolutely stink at.
However, by answering the questions below, and of…
Read More
One of the most popular television shows recently has been “Who Wants to Be a Millionaire?” When it comes to deciding upon your “Final Answer” about your future and your franchise selection you need to study and do your home work. That is, you need to complete your due diligence,…
Read More
“When you’re hot you’re hot, and when you’re not, you’re not” according to the Jerry Reed classic song of the same name. No truer words have been spoken that could describe a multitude of franchising opportunities.
Practically everyone wants to be associated with the latest and greatest, the next big…
Read More
As President Franklin D. Roosevelt proclaimed in his first inaugural address: “…let me assert my firm belief that the only thing we have to fear is fear itself—nameless, unreasoning, unjustified terror which paralyzes needed efforts to convert retreat into advance.”
Think about that quote for a minute. Not only can…
Read More
One of the best reasons that many entrepreneurs enter the world of franchising would be that, in a broad sense of the word, it is perceived as a “turn-key” operation, given all of the marketing, branding, training and overall support you can receive from the franchisor.
Taking that “turn-key”…
Read More
You’re quite certain that buying a franchise business represents your ideal pursuit of happiness in business. One of the final questions remaining before you now is “What type of franchise arrangement will work best for me?”
As you mull your decision like Hamlet—“To be…
Read More
Double-digit unemployment, the highest in the U.S. since 1983, has led many people to consider buying a franchise. Being your own boss, getting off the corporate merry-go-round, and envisioning a better lifestyle sure sounds enticing. If you are one of those, however, the first thing you need to do is…
Read More
Some locations may look as though they were a perfect spot for a franchise to operate in, but further investigation may prove otherwise. Others may look as though they were the last place one would want to be located, but again looks can be deceiving.
So how do you…
Read More
Various Franchise Financing Options exist and the following table compares each option. Side-by-side comparisions for Small Business Administration programs; Micro loan, 504, Patriot Express and 7(a). Also, compare the differences in Home Equity financing verses using a 401(k) Conversion. While everyone has unique requirements and circumstances, this chart will lay…
Read More
Can you understand your Franchise Agreement?
Unless you are or were associated with the legal profession in the past, the answer to the first question is probably a resounding, “No!” That’s why you had an attorney to look it over and explain it to you.
Now, however, for some reason,…
Read More
The first thing you should know about franchise earnings claims is that they must meet certain specific requirements. These include, but are not limited to:
•They must be in writing
•A description of what the claim is based on, as well as any assumptions that were made must be…
Read More
•What is the FDD?
Franchise Disclosure Document (FDD) is a format for disclosing franchisor information to prospective franchisees. The purpose of the FDD is to protect the public by providing information about the franchise company.
Currently, franchise investment laws exist in 15 states. Those…
Read More
Everyone who owns or operates a franchise business wants to know how the competition is doing. You as a franchise owner can find out in a number of ways. Depending on the route you want to take, you can either have the research done by a professional…
Read More
You are interested in purchasing a franchise business, and are wondering how you can finance the “start-up” money or capital that you will need to finance a franchise purchase. You know that you will not be receiving an inheritance or lavish monetary gift anytime soon, so you…
Read More
You may be interested in a franchise purchase, but do not want to make a loan in order to raise the capital. There are other ways of raising capital; perhaps one of these can work for you.
•Use of Inheritance or Gift
If you have received or know for sure…
Read More
What is considered normal start-up costs for one franchise business may not be so for another. Many factors can be involved, but generally most franchises will have at least some of the ones mentioned in this article. Dollar figures may be vastly different, also, which is why…
Read More
Snowstorms in Atlanta and the Southeast are Good for Small Businesses.
With the down pouring of flakes, cities like Atlanta in the Southeast seem to freeze-up. Consumers likely to go to the mall or run a few errands are deciding to stay safe and keep inside.
How does this…
Read More
How do you really know the value of an existing franchise business? Some visible factors, such as volume of business, number of locations in a particular or region, and other things may be easy to see, while others may not be as apparent.
You can ask…
Read More
There are risks involved in every investment, and this holds true for starting a franchise business. And, just as each investment and franchise will have its own particular risks, so will the owner have his level of tolerance for dealing with such risks.
How much risk…
Read More
The old saying, “If you have to ask the price, then you can’t afford it” doesn’t necessarily always apply when it comes to deciding whether or not to buy a franchise.
Naturally, while we all have some type of limit to our financial resources, don’t let the cost of…
Read More
More than half of new businesses do succeed within the first two years of beginning operation. This is contrary to what was previously thought—that one out of three businesses will fail within the first two years.
This is encouraging, especially if you are considering or have just started…
Read More
A franchise accountant is an important member of your franchise team. In fact, a franchise accountant should be one of the first members of the team, even before the franchise agreement is entered into.
By obtaining the services of a good franchise accountant from the very beginning, you will…
Read More
Your first question may be: “Why do I even need a franchise business plan?” You may especially be thinking this if you are planning on investing in a highly-recognizable franchise with proven success.
One reason may be that your creditor or financial backer may require one. If they do,…
Read More
When you invest in a franchise opportunity you pay or have paid for the right to sell a particular franchise’s products or offer that particular franchise’s services. For this, you get permission to use a particular brand name. And, the more recognizable a brand name is, the more likely consumer…
Read More
Franchise co-branding is when two companies operate in conjunction with one another. Usually, both share the same building or piece of property, and both company’s brands or products are displayed.
An example of this is when a deli sandwich shop opens up in a truck stop, or a fast-food…
Read More
When you get ready to purchase a new car, you probably will not just pick out the first one you come to, make the financial arrangements, and drive it off the lot. Most likely, you are going to tell the salesman that you want this particular color, leather upholstery instead…
Read More
You have owned and operated a successful business for some time now. Your profit margin is good, your product and services have been well-received, and you are fortunate enough to have good employees. You were even able to open a second location, and it is also doing well.
Because of…
Read More
“Area developer” is a term that is used by franchisers to describe people who take on a unique challenge when it comes to franchising. Franchise area developers are not content to start with just one store or business. Instead, they choose a geographic area and obtain exclusive rights, through signing…
Read More
You are most likely already familiar with what a franchise business is. However, did you know that there are master franchises as well as regular franchises? When a company or organization operates a master franchise, the rights to operate that particular franchise for a complete geographical region,…
Read More
You may have heard about home-based franchises, and are wondering if investing in and starting such a business is something you might be interested in. The information in this article can help you in your decision, by presenting both sides of owning a home-based franchise.
First, let’s look at the…
Read More
An inquisitive child never seems to stop asking the question, “But, why…?” almost to the point of absurdity. As adults we sometimes need to remind ourselves of the value in this soul-searching methodology when it comes time for critical decision-making, such as “Why do I want to have my own…
Read More
You’ve convinced yourself that owning a franchise business is your goal. Now you are wondering, “Where do I start the process of finding the right one for me?”
More than likely, your best resource may not your brother-in-law, or old high school buddy or golf partner, but…
Read More
So, you want to be a franchise owner? Sounds ideal:
You’re the boss, sitting back with your feet on the desk, big car parked outside, well-tanned from a vacation in the islands. Ehhhhhhh!!! Wrong answer.
Wake up from your daydream and turn from reality television into a real vision for…
Read More
ABC News recently reported that the unemployment rate was 9.4 percent, the highest level since August 1983. Don’t become a statistic.
Perhaps you have been working for your company for many years, maybe you play a vital role in growth and expansion, and quite possibly you have earned the respect…
Read More
As you continue on your journey in purchasing a franchise, there are a number of factors you will need to know. Of the many, one that rises to the top is understanding the demand for your targeted franchises product or service. Knowing this one element, will help you avoid common…
Read More
Entering into a franchise agreement binds your relationship with the franchisor. It’s important to ensure the agreement addresses your requirements without jeopardizing future relationships with the franchisor. While it seems, in business, you would want the best position or outcome in any deal. In the realm of Franchises, that is…
Read More
One way the 2009 Stimulus Bill will help small businesses and franchises obtain SBA (Small Business Association) Loans, is by the creation of the Secondary Market Lending Authority. This Authority will establish an office in the SBA that is able to provide loans to Secondary Market Broker-dealers. The Secondary Market…
Read More
The American Recovery and Reinvestment Act of 2009, known as the 2009 Stimulus Bill, is important for current and prospective franchise owners. Sections pertaining to the Small Business Association (SBA) are particularly vital. These factors, if approved, will loosen credit and provide investors opportunities to buy franchises.
Here are some…
Read More
There are only four ways to go into business. You can start a business from scratch. You can buy and existing business. You can become a consultant. You can buy a franchise business. The later, buying a franchise, is the option which allows you to buy a…
Read More
American Association of Franchisees and Dealers (AAFD)
American Franchisee Association (AFA)
Canadian Franchise Association (CFA)
Franchise Registry
International Franchise…
Read More
Franchise Financing Resources
American Capital
BeneTrends, Inc.
Guidant Financial
IRA Rollover Solutions
UPS Capital
Wells Fargo Business
With the sweeping wave of layoffs and the shrinking values in the stock market. Many are faced with a dilemma of finding the money to buy a franchise. Franchise seekers are looking in all areas for cash, including retirement funds.
The question that’s most asked is, “Can I purchase a…
Read More
Currently, there are 15 states that maintain Franchise Laws that require franchisors to give pre-sale disclosure to potential franchise investors.
If you are considering purchasing a franchise in one of the following states, please contact the State’s Agency responsible for regulating Franchise Sales for registration information of individual franchises.…
Read More
VetFran is a program that offers financial incentives to honorably discharged U.S. veterans. The official name is, Veterans Transition Franchise Initiative.
As a voluntary effort of the International Franchise Association (IFA) and its member companies, the VetFran program provides direction and assistance to veterans. Helping those…
Read More
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 Read More
The daily economic data and headlines are scaring people into a “wait and see” mode. Unless you live in a cave, you are aware of what has transpired and this is having an impact on business development.
As you know the more people who are unemployed due to massive layoffs,…
Read More
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…
Read More
The word Franchise comes from old French meaning privilege or freedom. In the middle ages a franchise was a privilege or a right. In those days, the local sovereign or lord would grant the right to hold markets or fairs, to operate the local ferry or to hunt on his…
Read More
The growth of the franchise business is inevitable, because of the inescapable logic of the underlying concept. Franchising clearly offers aspiring, new business owners the best possible chance of succeeding with the least risk. Within a decade or less, franchising will comprise over 50% of the retail…
Read More
The following benefits provide a good rationale for going into business by purchasing a franchise business. These must be balanced by the costs or disadvantages.
Lower Risks. Most business experts agree that a franchise operation has a lower risk of failure than an independent business. The statistics…
Read More
Franchise Statistics
• Franchise businesses account for nearly 50% of all retail sales in the United States.
• Franchise businesses employ more than 14 million Americans
• There are an estimated 5,000 franchise companies operating in the U.S. doing business through nearly 500,000…
Read More
In a sense, the franchise business model whose primary purpose is risk minimization. Every study ever done on the success rate of new (non-franchise) business startups concludes the same thing. Starting up a new non-franchised business has a much higher failure rate than starting a franchised business. …
Read More
In response to changes in technology and market conditions, after 12 years of rulemaking proceedings on January 22, 2007 the Federal Trade Commission approved (by a 5-0 vote) a substantially revised FTC Franchise Rule (16 C.F.R. Part 436), our only federal franchise sales regulation. This regulation…
Read More
Most often in the United States, when the topic of Franchising is brought up, McDonald’s, the most-recognized name in franchising, is mentioned. Why is this? Let’s first talk about what franchising is and then how McDonald’s shaped the franchise business industry.
Essentially franchising is a very specific…
Read More
To break down a large goal into manageable tasks is neccessary to be able to confidently complete any project. It is no different for finding a franchise business that meets your goals. We’ve broken down the process of buying a franchise into 3 simple steps: Exploration, Evaluation…
Read More
Being able to quickly identify the type of franchise business that meets your interests and objectives will save you time and money not ot mention headaches. By understanding the basic franchise characteristics you will be able to make better choices. Franchises types fall into five basic categories.…
Read More
When you begin your franchise due diligence process of determining whether a particular franchise is right for you, you will need to contact current and past franchise business owners. This part of the process is referred as validation. During validation you speak with…
Read More
The entire process of franchise due diligence, for both a Franchisor and a Franchise Candidate, should be about determining whether there is unified thinking. The best advice is to step back at the end of your due diligence process and ask yourself the following question: Did…
Read More
Franchise Disclosure Document (FDD), formerly called the Uniform Federal Offering Circular, (UFOC) provides prospective franchise investors with information about a prospective franchise. Company history, background information, risk factors and financial statements are just a few of the items covered.
To protect and inform the investor, the Read More
©2008-2010 FranFinders, LLC | About Us | Privacy Statement | Sitemap | Terms Of Use | Contact Us | Disclosures
