Getting Started in Franchising
You've made the decision to start a business and perhaps franchising is the way to go but you're not sure. Here is a primer on buying a franchise and some of the basic terms, concepts, and issues that you will encounter when you're ready to start the franchising process.
What is a Franchise?
The word franchise has become a common word in our modern day vocabularies. Even though we don’t use it as often as the word “business,” “venture,” or “opportunity,” a franchise can be all the above – and more.
The word franchise has become a common word in our modern day vocabularies. Even though we don’t use it as often as the word “business,” “venture,” or “opportunity,” a franchise can be all the above – and more.
The Difference Between a Franchise and Business Opportunity
All franchises are business opportunities, but not all “business opportunity” ventures qualify as franchises. While both these entitles have disclosure requirements, business opportunities have a number of distinctions that limit the scope of the opportunity being offered.
All franchises are business opportunities, but not all “business opportunity” ventures qualify as franchises. While both these entitles have disclosure requirements, business opportunities have a number of distinctions that limit the scope of the opportunity being offered.
Royalties: Why Are Franchisees Required to Pay Them?
Royalties are an integral component of the financial structure of a franchise. They are usually paid monthly by franchisees to the franchisor and are based on a franchise outlet’s gross or net revenues. Without a royalty structure, a franchise system will not have the financial resources to sustain operations or support its franchisees.
Royalties are an integral component of the financial structure of a franchise. They are usually paid monthly by franchisees to the franchisor and are based on a franchise outlet’s gross or net revenues. Without a royalty structure, a franchise system will not have the financial resources to sustain operations or support its franchisees.
The Pros and Cons of Buying a Franchise
If you’re set to start a business venture, you have likely gone back and forth on the dilemma of buying a franchise versus going out on your own. Regardless of your decision, the advantages and disadvantages are equally weighted for both business options.
If you’re set to start a business venture, you have likely gone back and forth on the dilemma of buying a franchise versus going out on your own. Regardless of your decision, the advantages and disadvantages are equally weighted for both business options.
Why You Should Consider Buying a Franchise
Although there are more than ten good reasons to invest in a franchise opportunity, your decision to go into business has a lot to do with lifestyle and financial benefits. Whether a home-based, service, retail, or fast-food opportunity, franchising is one of safest, dynamic, and progressive business concepts you can invest in.
Although there are more than ten good reasons to invest in a franchise opportunity, your decision to go into business has a lot to do with lifestyle and financial benefits. Whether a home-based, service, retail, or fast-food opportunity, franchising is one of safest, dynamic, and progressive business concepts you can invest in.
Levels of Support You Can Expect From the Franchisor
One of the advantages to buying a franchise is the initial and ongoing support you will receive from the franchisor. The level of support you can expect to receive will be outlined in the franchise agreement. The larger the franchise system, the more sophisticated the support system should be.
One of the advantages to buying a franchise is the initial and ongoing support you will receive from the franchisor. The level of support you can expect to receive will be outlined in the franchise agreement. The larger the franchise system, the more sophisticated the support system should be.
Should You Buy From a Franchise Broker?
Franchise brokers are not franchise consultants even though many people confuse these two roles. A franchise consultant offers unbiased advice on purchasing a franchise whereas a franchise broker is like a commissioned salesperson, representing a franchisor client list.
Franchise brokers are not franchise consultants even though many people confuse these two roles. A franchise consultant offers unbiased advice on purchasing a franchise whereas a franchise broker is like a commissioned salesperson, representing a franchisor client list.
How Safe is Franchising?
Owning a franchise makes you an entrepreneur, a small business owner. While no guarantees can be made in any business venture, franchising is one of the safest investments you can make to succeed as a small business owner.
Owning a franchise makes you an entrepreneur, a small business owner. While no guarantees can be made in any business venture, franchising is one of the safest investments you can make to succeed as a small business owner.
Franchising as a Career Alternative
It isn’t the norm for students graduating college to consider franchising as an alternative to pursuing corporate success. But, with the competitive challenges in the modern workplace to achieve an executive position and high-paying salary, seeking entrepreneurship through franchising may be a viable option.
It isn’t the norm for students graduating college to consider franchising as an alternative to pursuing corporate success. But, with the competitive challenges in the modern workplace to achieve an executive position and high-paying salary, seeking entrepreneurship through franchising may be a viable option.
Franchisee Placement Test: Is Franchising Right for You?
The franchisee placement test is a personal assessment quiz that addresses your level of compatibility with franchise ownership. Let’s face it, you may have become so enamored with the concept that you forget to assess whether you'd be a suitable franchisee. In other words, you may be better suited to run your own show, on your terms, using your creative input, vision, and innovation.
The franchisee placement test is a personal assessment quiz that addresses your level of compatibility with franchise ownership. Let’s face it, you may have become so enamored with the concept that you forget to assess whether you'd be a suitable franchisee. In other words, you may be better suited to run your own show, on your terms, using your creative input, vision, and innovation.