Food Franchise

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So, you want to own a franchise but are wondering what it would cost you to start one. Read on and get the scoop on the actual cost of owning a franchise. Like all things in life, you have to pay a price for owning a franchise – remember, there are no free lunches.

The price tags for franchises vary depending on the type of business you choose, with mobile and home-based business franchises being the most affordable category:

? hotel franchises: $4 million to $6 million

? full-service restaurants: $700,000 to $3.5 million

? fast food restaurants: $250,000 to $1 million

? auto repair: $200,000 to $300,000

There are different types of costs involved in owning a franchise. While some of these costs are typical expenses that you would expect to pay in any small business, there are other costs unique to franchises. This is the price to be paid for the added value a franchise presumably brings to your business venture.

You will incur both initial and ongoing costs. The initial or upfront costs include:

? Front-end franchise fees: You will have to pay an upfront fee for any franchise that you choose. This fee can range from $5,000 to $50,000 or more. In exchange for this fee, you receive the right to use the franchisor’s name and business concept. In most cases, you also receive a certain amount of training from the franchisor.

? Initial investment: Apart from the franchise fee, you will need to have some amount of money readily available to you to meet your initial setup and working capital expenses. Depending on your business, you may need as little as two to three months worth or as much as two to three years’ requirement of working capital. You can get an estimate from the franchisor as to how much this amount should be.

? Other expenses: You will have to pay professional fees for legal services and operating licenses; and things like insurance, employee training, inventory, rental and equipment will also cost money. Depending on the franchise, you may also have to pay up advertising costs upfront and buy signage packages from the franchisor.

The ongoing expenses include:

? Royalty Fees: In addition to the upfront franchise fee, many franchisors also require an ongoing royalty fee. This fee is assessed on a percentage basis and usually ranges from 5% to 10%. In return for the royalty fee, you are entitled to participation in national marketing campaigns, ongoing training and territory rights.

? Other expenses: Apart from the royalty fee, you will also incur regular ongoing expenses on advertising, equipment maintenance, employee salaries, insurance and inventory.

It is better to be prepared with complete knowledge before you take the plunge. Before you make the decision to buy into a franchise, make sure you have a thorough understanding of all the costs of ownership.

Resources

Street Smart Franchising (Paperback)

by Joe Mathews (Author), Don DeBolt (Author), Deb Percival (Author)

This straight-shooting franchise guide goes beyond the “how-to” to teach you what to expect when starting a franchise. Real-life stories from the trenches illustrate to you how to cope with the difficulties a franchise presents.

LegalMessenger.com™ is one of the leading online providers of business and personal legal forms and contracts. When you request a legal form or contract, LegalMessenger.com™ gives you all related legal documents on the same subject for FREE, providing you with a Complete and Total Protection of your rights.

Ladies and gentlemen as an entrepreneur ( A person who organizes, operates, and assumes the risk for a business venture. …) I think that there is much confusion on the Net today in regards to money making opportunities, systems, work from home, online businesses etc..etc. that are steering the average people, the inexperience, the naive, the financially challenged, those that are seeking just an additional income, perhaps yourself ,towards the wrong direction causing much of the needless frustration and deception and possibly into a greater financial distress.

Well, I can relate to all these factors, I’ve been in these situations myself and on top of all my personal challenges, searching for a way out caused me to close my eyes to reality and open them into “Virtual reality” making me an easy target for the cyber stalkers, meaning:

* Cyber stalking: preying on a victim via computer and the Internet. More on this topic later.
It’s a whole new world, a world of magical enticement, offering qualities that attract by seeming to promise some kind of reward for little to no effort at all.

Make no mistake about it, the Internet is still in the crawling stages and yet it has been making life a lot easier in more ways then one, for instance you are able to do your banking from home, no more commuting to the bank, saving you more time and money and actually helping our precious home ” Earth” by greatly reducing waste and energy. Shopping online has been growing by the minute, tons of malls, pharmacy …etc.You name it and it’s there with a click of a button.

Want to find your better half ?, did you know that more and more people are turning to date websites to look for a partner, they get to set their desired profile and just click the search button. After they screen their candidates they could choose to meet them in person without the fear of rejection or an awkward situation of a blind date.

Today there’s a new emerging generation ” The gotta have it now” generation, when they want something it has to be immediately(Instant Gratification), if they want music, softwares, books, games, ring-tons and the list goes on, all they need to do is download it and in seconds they’ll have it.

News or newspaper?, people are canceling their newspaper drop every single day, when all they have to do is go online whenever they want and have the world at their fingertips.

Well, I could go on here forever but I’m just trying to give you a glimpse to where we are headed, now think about it, all these things are being created to make life a lot easier and at the same time creating many businesses opportunities.
Not long ago wanting to be your own boss you would go out and start a retail store, a restaurant, a beauty salon etc or buy into a successful franchise with a proven SYSTEM to minimize your risk.

The Small Business Administration (SBA) reported that 30% of independent, non-franchise companies fail during their first year,
and that about 5% of franchises fail their first year and the numbers are increasing due to many factors.
1-Bad location 2- Marketing/advertising 3- Competition 4- Slow economy 5-Unrealistic expectations

Unrealistic expectation, I think is the leading cause, why? Because it all starts with a dream and if you get carried away that dream turns into to a nightmare due to lack of planning.

New franchisees are known for having very high expectations. It may take 2-3 years before you see a profit and if you don’t plan for that, you may sink before you have a chance to swim. If you don’t like dealing directly with people you should not get into a franchise or any other business that requires that from you and if you want to make it, you must put in long hours and work with all
kinds of personalities. Some people are more difficult to interact with than others. As a business owner you need to be able to interact well with people from all walks of life. The ability to manage employees also is essential to the success of your business.

Unless you are loaded with cash and don’t mind paying $10k to 20K in rent, thousands more on employees, insurance, utilities, accountants, maintenance, marketing…etc not to mention the initial start-up cost, while you are making next to nothing hoping that someone drops in and spend a few bucks , then by all means knock yourself out.

Today we are facing recession, inflation…. everyone is tightening their belts, how long are we in for this? what can we expect for the future? unemployment rate is on the rise again, businesses are closing, thousands of families are losing their homes, their cars and most importantly their health due to an overwhelming amount of stress and heart ache.

We must create our own economy, we can’t depend on social security and government to fill in the gaps and our needs. While many are in financial distress there are those that are making tons of money and if you do your homework you’ll find those people on the Internet.
The future is online ,

According to the Internet World Stats that collects its data from Nielson//NetRatings and the International Telecommunications Union (ITU) as of September 18, 2006 there are 1,086,250,903 people on the Internet world-wide and 229,138,706 people in the United States on the Internet.

Are you concerned with competition…? If you must fear competition fear having a burger joint in some corner where there are at least 5 others in a mile stretch with only a few thousands of people passing by per day and who knows? half of those people may be, vegetarians, on a diet or on a tight budget.

According to the Pew Internet & American Life Project, fewer than one in seven Americans were online in 1995. Today, the majority of Americans are surfing the Web, exchanging e-mail, reading bank statements and ball scores, checking the weather.
Today, Pew says, two out of every three Americans spend time online.
The World Wide Web has transformed the way people live, work and play and the transformation has just begun.

Now, you may ask, Do you have any idea why then, so many people fail on the Internet?

1-Well, in the beginning I mentioned the cyber stalker commonly known as scammers, they play a great role on failures, you see these individuals see the potential in making money online but they want it even faster ( The gotta have it now generation) and they’ll do whatever it takes, so what most of them do is copy a legitimate business (Copycats) to a certain extent and by that I mean they leave out the main part which is the support and training,the heart of any business and add a bunch of fluff that gets the ” Newbie” all fired up and ready to dump their money in their laps. Without a clue to what to do next and no one to call, no one to help they end up quiting and sometimes for good, thinking everyone on the Net is a scammer. You must understand that scammers are all over, not just on the Net, you’ll find them or should I say they’ll find you by mail, door fliers, radio and even TV .

They’ll promise you the world and since your present situation is requiring a miracle you may be tempted to give it a try.

Usually these business opportunities like to bad mouth and bash other businesses giving you “the Newbie” the impression that they are looking out for you using pitches like , ” Our system is better than xyz” or ” We do all the work and you make all the money”
Well, you know the drill. It is imperative for you to know that anything worthwhile is worth something whether it’s money, time and energy , most likely all.

2- Most people WANT success but don’t realize how much work will be required from them once they are in. When they find out what it will take, most are not willing to take action on the necessary steps to ensure success.
If MacDonald’s offered you their duplicatable Proven System for next to nothing and told you they would do all the work and you would just stop by to collect the cash and a few burgers, would you believe that? Hope not.

Why would one believe that online businesses would have such a sweet deal? Granted, there are all kinds of opportunities some require more work than money, some more money than work, it will depend on your accessibility to either one or both to make your decision but still there must be something in the barrel or you will just be shooting blanks.

3- Most Home based systems rely to much on the individual, whom usually has little to no experience with cold calling, selling and marketing. Plus they don’t have a lot of time to devote to the business because they are working a full time J0B. It is very important for a person to write down their Goals, besides money what are you looking to accomplish with a home based business?

* How many hours a day will you have to work this business?

* Will it be something you’ll enjoy doing?

* What kind of income are you searching for ( Be realistic, if you want a million by next week, try the lottery)

* Will you enjoy talking to people?

* Are you willing to educate yourself?

* Are you persistent?

These are just a few questions you may want to ask yourself, first you must know what you want in order to find a business that matches your expectations and only then make your decision., See most people try businesses just because it sounds good and there’s nothing wrong with that as long as your willing to do whatever it takes to succeed. Some people like to have jobs, work from
8 to 5, go home pay their bills and hope for the best. Some people like to be bossed around and make other people money. The way I see it .., as long as they’re happy that’s what counts! But with such a mind set, these are the people that are part of the 98% failure rate.

For those that are interested in a legitimate online business , that’s been successfully growing for 2 years, that has a great system in place and that will take you step by step to financial freedom, if you are willing, work with a team of people with a business mind set that are succeeding I welcome you to request more information and I’ll gladly show you around and by that I mean you’ll be able to take a free trial, no commitment and see if this business fits your circumstances and expectations, you’ll be able to see and hear what we are doing and most importantly how we are doing it, that and much more in your back office,plus, you’ll be able to attend our training classes live for as long as you feel necessary, leaving nothing to chance and guess work. Yes we are here to make money,like everyone else but we do it with integrity, honesty and we tell it like it is and we can’t succeed if we don’t teach you how to succeed and provide you with the necessary skills and tools. That is why our company has grown successfully for the past 2 years.

If after you reviewed all the information and participated in our training webinars, still have questions? you’ll have access to my personal phone number and also the owner of the Company, no sales pressure, no commitment just plain facts.
I do ask that only those that are serious about starting an online business and start making some serious money from home request more information.

Thank you for taking the time to read this article, I hope it has been helpful.

Luiz A.

“Everyone has the power for greatness. Not for fame but for greatness, because greatness is determined by service. ”
- Rev. Dr. Martin Luther King, Jr.

Every once in a while comes the opportunity of a lifetime. An opportunity that gives you the chance to please yourself and others is hard to find. When you decide to open up a coffee shop you may want to go on your own and try to do everything or you may want to consider a coffee shop franchise to get yourself started. There are several pros and cons to a coffee shop franchise opportunity and you have the choice to weigh your options and go with the best opportunity for you. If an opportunity is knocking, you do not want to pass it up.

Pros of a coffee shop franchise opportunity
When you choose to go with a coffee shop franchise you will not be alone in your new business venture. The coffee shop franchise company wants to see you succeed and to do that they will coach you and help you every step of the way. They will teach you about all the products they offer, how to manage employees, how to handle all the business activities, ordering supplies, and what to look for or avoid. Your franchise manager or coach can make your new business run as smooth as can be while giving you all the information that you will need in order to continue after they leave. A franchise will usually provide you with one week to two weeks of training. First you will experience the business opportunity by visiting one of the successful franchises already established. Then a coach or manager will come to your location and help you during the first few days or week.

The cons of a coffee shop franchise opportunity
There are always good points and bad points to any business. The bad points are that each franchise will usually have their own set of rules and regulations. The main downfall, of course, is the amount of money you need up front before your business even begins. Then you have additional expenses as well. Sometimes it makes you feel as though things would have been a lot less expensive if you went on your own but you don’t have the support that will benefit your business in the long run. When you go with a coffee shop franchise, there are several regulations which must be adhered to including declaring the amount of earnings. You must have a certain amount of employees maintained at all times and the business must be run the way that they specify.

Each coffee shop franchise usually has their own site that lists the major rules and regulations so you can get a first hand look at what may be required. This will help you determine if you want to peruse this franchise more or if you feel you would be better off if you went to another franchise.

Coffee shop franchise opportunities are there to help those who want to be their own boss get started with some type of guidance. The benefit of coffee shop franchises helping you is it also gives them a cut of the profit as well. It is a situation where both companies win, the franchisor and the franchisee.