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Other Added - Home Based Franchising
Moving into a new job always involves some degree of uncertainty. You should do your best to find out all you can about a prospective employer, starting right from the pre-interview stage.Here are some things to look out for. If one or more of these warning signs are present, you need to be doubly careful about joining that organization.1. The company is in the midst of mergers and acquisitions, or there is a major reorganization taking place, staff cutbacks are on the anvil or some other major flux is occurring.2. The company you are considering is not undergoing problems like those described above, but many other companies in that industry are. That could be an indication that trouble may spread
•Attorney General's Office
•BBB located in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.
Be wise and
The other type of business organization is the limited liability organization. These entities can take many forms. These forms are: (1) a limited liability partnership; (2) a limited liability company; (3) a limited liability limited partnership; and (4) a corporation. Note that there are various forms of corporations (such as an S-corporation, a close corporation, and a closely-held corporation), but these are conversations for another day.Like the unlimited liability entities, these limited liability entities have pros and cons. First, and most obviously, these limited liability companies, as the name suggests, limits your liability. You are liable (some exceptions apply such as piercing the corporate ve
Do you desire Home Business Ownership but cringe at the thought of starting from scratch?
Possibly a Home based Franchise is your answer.
A Franchise is a business in which "... the franchisor, the owner and developer of the franchise system licenses [you] franchisees to use trademarks, service marks, logos, or advertising owned or developed by the franchisor." (International Franchising Association, Franchising basics).
With some franchise programs, the business operates using the Franchisor's brand name only.
Other programs are less restrictive and allow for the usage of both a trade name in addition to the franchisor's brand name.
Common to all franchise programs, the franchisee[ you] is responsible to pay the franchisor, advertising fees, initial fees, service fees, and or royalty fees.
You are responsible for payment whether your business is profitable or not.
Additionally, many franchisor's provide educational programs to franchisees before the inception of the business.
Often times, they've done demographic studies and other studies to ensure that you have greater odds of returning a profit.
Major Franchise Types
• Unit Franchising
Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a specified location or within a particular territory.
• Area Development Franchising
In accordance with a "development schedule", the franchisee agrees to establish a predetermined number of "unit franchises" within a particular territory.
• Subfranchising/Master franchizing
Is quite similar to Area Development Franchising with the major difference being that the franchisor grants the subfranchisor the option of opening the unit franchises herself or selling the the franchises to third parties. (Common with International franchising)
• Affiliate Franchising
This type of set up is typically used by an owner of an established business who decides to join/affiliate with a franchised chain.
This allows for the benefit of the franchises brand. This is common with many real estate.
• NonTraditional
This type of set up is customized between the franchisor and the franchisee.
Franchises are not the same as Dealerships and distributorships
A dealership or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products usually from the manufacturer at wholesale prices.
Note however, that a dealership can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure.
Considerations when buying a franchise
• There's a benefit to purchasing a franchise that is well known
• Will the franchisor provide ongoing education and support?
• Were demographic studies performed?
• How many of the franchises have closed operation? Why?
• Have you STUDIED the franchiser's Comprehensive Disclosure Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing.
By law, each of the above must be provided at least 2 weeks prior to purchase date.
• I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment.
Additional Sources of information
•Success Magazine
•International Franchise Association www.franchise.org
•Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors.
•SBA Small Business Association
•Brokerage firms and analysts Since stock information on A public company is useful.
•Franchise Lawyer
•Federal Trade Commission Public Reference Branch
•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.
•Attorney General's Office
•BBB located in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.
Be wise and
Recently a group of franchise attorneys had come across a purported violation of the New York franchise rules and regulations when an unregistered franchisor had delivered a Uniform Franchise Offering Circular or UFOC to a New York resident, which was not in compliance with FTC rules and regulations or the State of New York.The attorneys and decided that perhaps they should turn in the franchisor who made the mistake. Well I have a problem with all this. Why not simplify the process, educate all the new entrants and remove the barriers to entry? No we cannot do that, what would the Lawyers have to do? All this over regulation was created by lawyers, but now we can study it for a law journal?Why not have
Major Franchise Types
• Unit Franchising
Is the most simple type of franchise in which the Franchisor grants the franchisee the right to operate a single operation at a specified location or within a particular territory.
• Area Development Franchising
In accordance with a "development schedule", the franchisee agrees to establish a predetermined number of "unit franchises" within a particular territory.
• Subfranchising/Master franchizing
Is quite similar to Area Development Franchising with the major difference being that the franchisor grants the subfranchisor the option of opening the unit franchises herself or selling the the franchises to third parties. (Common with International franchising)
• Affiliate Franchising
This type of set up is typically used by an owner of an established business who decides to join/affiliate with a franchised chain.
This allows for the benefit of the franchises brand. This is common with many real estate.
• NonTraditional
This type of set up is customized between the franchisor and the franchisee.
Franchises are not the same as Dealerships and distributorships
A dealership or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products usually from the manufacturer at wholesale prices.
Note however, that a dealership can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure.
Considerations when buying a franchise
• There's a benefit to purchasing a franchise that is well known
• Will the franchisor provide ongoing education and support?
• Were demographic studies performed?
• How many of the franchises have closed operation? Why?
• Have you STUDIED the franchiser's Comprehensive Disclosure Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing.
By law, each of the above must be provided at least 2 weeks prior to purchase date.
• I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment.
Additional Sources of information
•Success Magazine
•International Franchise Association www.franchise.org
•Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors.
•SBA Small Business Association
•Brokerage firms and analysts Since stock information on A public company is useful.
•Franchise Lawyer
•Federal Trade Commission Public Reference Branch
•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.
•Attorney General's Office
•BBB located in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.
Be wise and
Today's world is highly competitive. Regardless of whether you are in business or in the workforce you have to ward off competition each and every day. But there is something that you can do to keep ahead of the field so that your competition does not threaten you.The best thing you have going for you when it comes to beating the competition is the habits that your competition live by day in and day out. Because most people and most businesses have poor habits then it is easy for you to distinguish yourself and stay ahead of the pack.One of the habits that distinguish top performers from the rest is the habit of going the extra mile.Going the extra mile doesn't mean putting in long hours, many of
• NonTraditional
This type of set up is customized between the franchisor and the franchisee.
Franchises are not the same as Dealerships and distributorships
A dealership or distributorship differs from a franchise in that there is no FEE involved. Dealers purchase products usually from the manufacturer at wholesale prices.
Note however, that a dealership can become a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor's pay structure.
Considerations when buying a franchise
• There's a benefit to purchasing a franchise that is well known
• Will the franchisor provide ongoing education and support?
• Were demographic studies performed?
• How many of the franchises have closed operation? Why?
• Have you STUDIED the franchiser's Comprehensive Disclosure Statement? It's required by Law that prospective Franchisee's are provided Comprehensive Disclosure, a copy of the franchisor's Standard Franchise Agreement, Audited statements, a list of the names of all of the Franchisees, as well as a copy of all documents that require the franchisees' signing.
By law, each of the above must be provided at least 2 weeks prior to purchase date.
• I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment.
Additional Sources of information
•Success Magazine
•International Franchise Association www.franchise.org
•Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors.
•SBA Small Business Association
•Brokerage firms and analysts Since stock information on A public company is useful.
•Franchise Lawyer
•Federal Trade Commission Public Reference Branch
•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.
•Attorney General's Office
•BBB located in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.
Be wise and
Some companies track a monthly ‘complaints and compliments ratio’ for each branch, store, department, country or station. This approach has a fundamental flaw. Here’s why:A complaints and compliments ratio encourages staff to actively avoid or suppress written complaints from customers. After all, every written complaint will impact the ratio to their disadvantage.For example, if your station gets 3 compliments and 0 complaints, and my station has 6 compliments and 3 complaints, whose station has a better ratio? Yours has, of course.But which station is gathering more written feedback from customers? Which station is harnessing more input, suggestions, responses and reactions for detailed review?
By law, each of the above must be provided at least 2 weeks prior to purchase date.
• I've heard the saying, "if you buy a McDonald's, be prepared to eat burger's for breakfast lunch and dinner." In other words, your business requires commitment.
Additional Sources of information
•Success Magazine
•International Franchise Association www.franchise.org
•Franchise Sales Press *Get this magazine since it is known for its focus on franchise opportunities. Further, they perform regular interviews with both franchisees as well as with franchisors.
•SBA Small Business Association
•Brokerage firms and analysts Since stock information on A public company is useful.
•Franchise Lawyer
•Federal Trade Commission Public Reference Branch
•UFOC "Uniform Franchise Offering circular -- the material that is provided by law, by the franchisor to the qualified franchisee. This is likely the most telling of all information gathered.
•Attorney General's Office
•BBB located in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.
Be wise and
If you were like me – total ignorance on fire - when I started my business from home, then this story might sound familiar. I did what the leaders did to pave the way, and they were getting the results that I wanted so I did what they did. I placed $1,000’s on newspaper classifieds. Spent three grand PLUS on a fancy lead capture splash page. I purchased THOUSANDS of leads to "keep in flow" only to discover that those lead generation companies resell and resell so all you are doing is calling people who have been contacted many times before, and frankly they don't even remember looking for an opportunity. This sucky marketing nearly bankrupted me financially and emotionally. What I didn’t know (and I don’t even know if
•Attorney General's Office
•BBB located in the city of the Franchisor's headquarters.
•Your Banker should have access to the Dunn and Bradstreet Report on the particular Franchisor.
•Contact the franchisor's franchisee's listed in UFOC. *** Prepare a list of relevant questions prior to calling.
Purchasing a franchise usually equates to a reduction in investment risks since the" system" and Franchise name is established, training and ongoing support is provided, market research has been conducted... Conversely…
franchise ownership can be costly. Consequently, it is critical that you investigate the franchise thoroughly prior to purchasing.
There is a continual rise in the number of franchises. Obviously, there's a HUGE market for this method of business ownership. When approached methodically and practically, Franchise ownership can be Very lucrative and much simpler than beginning a business from the ground up.
Be wise and ensure that you conduct sufficient research prior to committment.
If you’ll need financial backing, then you will need to create a business plan. There’s a handy Business Plan workbook available at our site.
Bridging the Gap between Opportunity and Success, OwnABizToday.com
Copyright 2005 Shawn Price
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