Is At ease Based Franchising for you?
Accomplish you admiration At ease Bag Ownership but cringe at the anticipation of starting from scratch?
Possibly a At ease based Franchise is your answer.
A Franchise is a bag in which “… the franchisor, the owner and developer of the franchise system licenses [you] franchisees to statement trademarks, service marks, logos, or advertising owned or developed by the franchisor.” (International Franchising Association, Franchising basics).
With some franchise programs, the bag operates using the Franchisor’s brand agname alone.
Other programs are less restrictive and acquiesce for the usage of both a trade agname in addition to the franchisor’s brand agname.
Accepted to all franchise programs, the franchisee[ you] is amenable to pament the franchisor, advertising fees, initial fees, service fees, and or royalty fees.
You are amenable for payment whether your bag is profitable or not.
Additionally, abounding franchisor’s accommodate educational programs to franchisees before the inception of the bag.
Generally times, they’ve done demographic studies and other studies to arrange that you accept greater odds of returning a profit.
Above Franchise Types
Is the most child’s play type of franchise in which the Franchisor grants the franchisee the adapted to operate a single operation at a specified location or within a particular state.
Area Adding to Franchising
In accordance with a “adding to timetable”, the franchisee agrees to authorize a predetermined figure of “unit franchises” within a particular state.
Is certainly agnate to Area Adding to Franchising with the above aberration being that the franchisor grants the subfranchisor the choice of opening the unit franchises herself or selling the the franchises to third parties. (Accepted with International franchising)
This type of set up is typically used by an owner of an established bag who decides to accompany/affiliate with a franchised chain.
This allows for the statement of the franchises brand. This is accepted with abounding absolute estate.
This type of set up is customized between the franchisor and the franchisee.
Franchises are not the selfsame 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 alter to a Franchise IF a FEE is paid to the franchisor AND the distributor is dependent upon the franchisor’s pament structure.
Considerations when buying a franchise
There’s a statement to purchasing a franchise that is able-bodied accepted
Will the franchisor accommodate ongoing education and abutment?
Were demographic studies performed?
How abounding of the franchises accept closed operation? Why?
Accept you STUDIED the franchiser’s Comprehensive Disclosure Statement? It’s required by Constitution 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 able-bodied as a copy of all documents that crave the franchisees’ signing.
By constitution, 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 bag requires commitment.
Supplementary Sources of advice
International Franchise Association www.franchise.org
Franchise Sales Press *Amuse this magazine since it is accepted for its bull's eye on franchise opportunities. Further, they perform regular interviews with both franchisees as able-bodied as with franchisors.
SBA Baby Bag Association
Brokerage firms and analysts Since stock advice on A public company is advantageous.
Franchise Solicitor Federal Trade Commission Public Reference Branch
UFOC “Uniform Franchise Offering circular — the material that is provided by constitution, by the franchisor to the able franchisee. This is likely the most telling of all advice gathered.
Attorney General’s Office
BBB located in the city of the Franchisor’s headquarters.
Your Banker should accept 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 lessening in investment risks since the” system” and Franchise agname is established, training and ongoing abutment is provided, marketplace 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 figure of franchises. Obviously, there’s a HUGE marketplace for this adaption of bag ownership. When approached methodically and practically, Franchise ownership can be Actual lucrative and much simpler than alpha a bag from the ground up.
Be astute and arrange that you conduct sufficient research prior to committment.
If youll charge financial backing, then you will charge to actualize a bag aim. Theres a handy Bag Aim workbook available at our site.
Bridging the Opening between Befalling and Accomplishment, OwnABizToday.com
About the author:
Due to her terminally ill, physically and mentally handicapped child, Shawn was FORCED out of the “action marketplace” and FORCED into “self employment” …After experiencing a multitude of financial difficulties. As of her action’s experiences, Shawn understands that it’s impossible to predict approaching circumstances and thus it’s terribly big that bodies…particularly parents, advance financial security. Consequently, leading others toward bag ownership has alter to a affection for Shawn. Presently, Shawn is the Author of OwnABizToday’s, Ezine, which presents Advanced At ease bag Alpha up’s and Baby Bag Resources each week. To accept our weekly Ezine, send a blank email to: firstname.lastname@example.org RSS: http://www.ownabiztoday.com/ownabiztoday.xml Bridging the GAP between Befalling and Accomplishment, OwnABizToday (http://www.ownabiztoday.com )
Originall posted October 28, 2012