Food Franchise

Posts Tagged ‘Business Model’

Franchising is a business model where a franchisee gets the permission start a branch that uses the name and methods of the franchisor in exchange for royalty fees. It differs a bit from starting your own business due to the fact that you are using the proven business strategy of an established company. An article by the Financial Times concluded that sales by franchises in the United States – if translated into gross national product – would rank in as the world’s 7th biggest economy.

1. Franchise Examples

- McDonald’s

- Kentucky Fried Chicken

- Wendy’s

- Burger King

- Swiss Chalet

- Food chains

2. Want To Be Royalty?

These large chains do not actually invest in new branches or outlets; they have interested franchisors to invest for them. In return they keep the income and instead pay back royalties on food sales (or other royalty schemes, depending on the franchise). Franchises are an appealing business to invest in because they already have an established business model that has been proven to be successful. So, it follows that investing in such businesses have a greater chance of success. Plus, you have the backing, training, and expertise of the franchise at your disposal.

If you are considering buying into such a business, you should consider the background of the franchise. This is in addition to the questions regarding the fees, organization, and support.

- Have many franchise owners gone through the branch you are planning to buy?

- Observe the way business in conducted at these branches

- Pay special attention to the customers and, if possible, interview them

- Do this with every branch you plan to buy or are considering to buy

3. Things to Consider

Some prospective owners look at the buying price of a franchise when considering buying into them. Unfortunately, they forget to factor in other expenses such as employee salaries and operating expenses. These factors are crucial in knowing if you can really make a profit out of the business. This problem is further compounded if the business requires more employees or if the business needs more managers. If you don’t consider these expenses, you might find yourself over your head in the budget department as the actual buying price plus salaries, operating expenses, and even debts could easily double your expected budget.

Don’t just jump into a franchise business; do an inventory of your goals and your strengths when considering which franchise you want to purchase. You might be considering buying into a fast food franchise when you do not have any interest in the food business. In some way, that could be suicide. Stick to your forte and use your strengths to your advantage.

4. Budget

Always, always work within budget. Remember you are either buying into an existing franchise or starting a new branch. It wouldn’t do well to start in debt. An accountant would come in handy when considering a franchise. Have them look at the numbers and analyze how the particular business is going. These professionals have experience in assessing and evaluating how that business is going. If they raise the red flag, you may want to reconsider buying into the business.

5. To Each His Own

Franchises do not suit everyone, however, they do present a relatively intriguing business prospect. As with any potential investment, make sure you do your homework diligently. Investigate with all your might. It is your hard earned money at stake here. If you do your job right, well, you may have a potential gold mine in your hands. Do not be complacent once you purchase a franchise. If you exerted effort when you still did not own the branch, you may have to exert more afterwards.

One of the toughest parts of choosing a home based business can be deciding which one is the right fit for your goals and skills. There are so many great options available that good research can often take weeks, months, or years before a person ever even gets to the point of purchasing a franchise. If that’s where you find yourself, interested in starting one of the many internet franchises available but unsure which to go with, then here is a shortened list of what may be the top 5 choices at your fingertips.

1. WSI Internet

This is possibly the single most impressive name in internet marketing consultation. This year, Entrepreneur Magazine deemed WSI Internet the #1 internet and technology franchise for the seventh straight year, something that few, if any other businesses can credit themselves with. Called the “white collar franchise,” WSI Internet serves the web marketing needs of small and mid-sized businesses around the country with a wide variety of marketing strategies. With a proven system for acquiring new clients while keeping long-standing business relationships intact, this franchise is designed to fit the franchisees needs by either remaining a home business or expanding into a larger, management operation with an office location. Whatever your business goals, WSI Internet has a means to get there.

2. Human Resources Rx

Specializing in providing human resources services to smaller businesses unable to do so for themselves, this work from home franchise is a step ahead of other consulting businesses because they provide 2 different ways to earn your living under their name. The first is the most straightforward: utilizing their full array of training and support resources to build a client base of small and mid-size businesses for whom you serve as their outsourced HR department. If, however, a franchisee wishes to take the business model a step further, the second option is becoming a master franchisee, bringing in and overseeing other franchisees in your exclusive area and profiting from their successes. Either way, the business is solid and in high demand.

3. Vehicle Tracking Solutions

One of the very few business opportunities in their field, Vehicle Tracking Solutions franchisees sell, install, and repair GPS tracking devices for use in various business vehicles, as well as all the associated software and hardware. Surprisingly, only 7% of the 20 million US business vehicles are equipped with tracking mechanisms, which means that the room for growth is beyond virtually any other industry. What’s more, Vehicle Tracking Solutions franchisees have 2 different streams of income. Regardless of how well a franchisee is doing at bringing in new clients at any given time, there is always revenue coming in from existing clients who pay for continued access to the Vehicle Tracking Solutions network services that keep their equipment useful. For a good salesman, this is the right business in the right market.

4. Air Advantage

Wireless internet is available everywhere these days: residential homes, schools, coffee shops, libraries, and even some busses. The only places left without wireless connectivity are farms and rural towns, but this franchise is poised and ready to change that. The only franchising business to be addressing the need for internet connection in rural America, Air Advantage has developed both a way to link farmers to the web wirelessly as well as a way to sell that service. Franchisees are given all the tools and ongoing support necessary to help the largest demographic of US citizens not currently online and make a profit doing it. It’s no wonder this business has won the US Chamber of Commerce Blue Ribbon 2 years in a row.

5. Virtuoso Music

Finally, this work at home franchise is just a solid business that can be started up virtually anywhere, because people everywhere love music, but not everyone can play an instrument. With the excellent training that this franchisor provides, franchisees are given everything necessary to find students seeking musical training as well as the local professionals who can teach them and put the two together. But they also do so much more; working with local schools and other public locations to arrange performances, recitals, festivals, and other events. In many ways, Virtuoso Music franchisees have the distinct privilege of working for the benefit of the community, with a musical slant, and making a living from it. Not many people are so lucky.

There are many opportunities to work from home in today’s market, and these are some of the best. If any stand out as being the right choice for you, dig around for further information. You may find that it’s not just one of the best, but more specifically, the best for you.