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Posts Tagged ‘Buying A Franchise’

In today’s rapidly changing economy, college graduates realize that embarking on a steady career that will last many years with one company is a reality of the past. More likely than not, college graduates will change jobs multiple times over the course of their professional lives, and job security will be something they only dream of. As a result, more and more young men and women entering the workforce are exploring options outside of the traditional “9-5” job. For the entrepreneurial thinker, buying a franchise will rank high on this list of possibilities. Yet, despite the inarguable success of numerous franchises and countless franchise owners across the country and around the world, is venturing into the franchise business the right choice for a recent college graduate?

Persuasive cases exist on both sides of the issue, and in order for each individual to make the best personal decision on whether to pursue a franchise opportunity, he or she should take time to evaluate several factors involved in franchise business opportunities. The following are several pros and cons of making the college-to-franchise transition.

The Pros

1) No Experience… No Problem

Because franchises succeed based on a proven system of operation, capitalizing on franchise opportunities requires little to no previous experience. Rather, established franchises provide the tools necessary to make your business profitable, including training manuals, marketing and PR, and full support for your endeavor. Consider, for example, any popular restaurant franchise. The franchise owner does not need to spend time or energy on advertising and marketing, as the parent corporation ensures the development and implementation of marketing strategies. In the same way, the franchise owner does not need to research best business practices to determine how to operate his or her particular store. He or she needs only to follow the tried and true pattern of operation that is already in place.

2) Early Independence with Less Risk

Few things are more gratifying than building a business in which you work for yourself and are able to see and keep the fruits of your labor. With interest in entrepreneurship increasingly on the rise, more and more young professionals are looking for ways to generate an income and create a lifestyle while working for themselves. Because of the systems of success already in place with franchise business opportunities, young entrepreneurs can minimize business start-up risks while maximizing their potential for success.

3) Organizational Support

Today’s young business owners are not alone in navigating the at-times-rough waters of entrepreneurship. Organizations such as the Small Business Administration in the United States (http://www.sba.gov/smallbusinessplanner/index.html) and the Young Entrepreneurs Association in Canada (http://www.yea.ca) provide useful information, tools, and resources to help business owners on the path to success.

As positive as the pros are, however, as with any decision, it is equally important to weigh the cons. When determining whether a business franchise is right for you, consider the following.

The Cons

1) Leadership Skills

As a recent college graduate, you may have extensive by-the-book business knowledge and be able to foresee assets and liabilities without a blink of the eye. But many franchise opportunities also require the ability to lead a staff of people. It is important to ask yourself if you know the principles of hiring and firing, and if you are comfortable managing people even if difficult and stressful situations. Some experts recommend that before you step into the role of employer, you might benefit from first spending some time as an employee, particularly in the franchise industry which you are planning to pursue.

2) Financial Capabilities

Even when it pays off in the long run, up-front franchise financing can be a costly endeavor, and it is not uncommon for franchises to take at least a year or longer to break even. In fact, it is uncommon for them not to. Do you have the resources to fund your franchise venture while still being able to provide for your basic needs such as food and shelter? And, are you willing to stick with your franchise even through any early difficult days and see it through to the profitable days ahead?

3) Industry Interest

As with any business endeavor, to become successful in a franchise business opportunity, you must be committed to persevering for the long haul. Have you done enough research to ensure as much as possible that the franchise you have chosen is one that you will be able to enthusiastically devote yourself to for several years to come? Are you letting your passion dictate the franchise you choose, or are franchise opportunities dictating your passion? To be successful, be sure that it is the former and never the latter.

The franchising market is strong and growing larger by the day. From 2004 to 2005 along, there was an 11% increase in the number of franchise units! Given the incredible growth of this industry, it is natural that it will remain a serious consideration for any young college graduates seeking to reap the benefits of free enterprise. And with the many types of business available, franchise opportunities offer numerous industries to fit with individual interests and talents. Honestly considering the above pros and cons will help you in your decision on whether starting a franchise business straight out of college is right for you.

Looking seriously at running your own business? Got a passion for something that makes you want jump out of bed and race into work to do it? Got the dream but worried about starting a business from the ground up? It’s not for the faint-hearted. However there is another option – the franchise.

There are a number of valid reasons to buy a franchise. The first of which is that, you don’t have to build the name and reputation of your business. By having a franchise contract you buy into a company with an existing brand and name.

You then also benefit from advertising that the company already does which is great news if it is nationwide. You get advertising for a product that is already well-known. You don’t need to develop your own advertising campaign. Radio and commercial scripts are already written for you. Not only will you be able to benefit from the marketing that the company does, but you will also receive ongoing training. When you start your own business, it’s a hard slog learning everything on your own.

Franchises have already got a proven track record and are successful for franchisees essentially because they create partnerships. Buying a franchise allows you to own and manage your own business and have the guidance of a mentor, someone who has trodden the boards and knows how to make it work.

You essentially buy a business model that works with the product, structure and business know-how all ready for you to manage.

Franchises exist in all kinds of areas. There’s McDonald’s. There’s Burger King, Wendy’s, Dunkin Donuts, and many more. But maybe your passions are less high profile and not about food! Maybe your passions are of a health-conscious even spiritual nature. Do franchise opportunities exist here? Yes they do!

There is a growing trend towards exploring more relaxing and healthy ways to enjoy life and relieve the stresses of life. This is particularly occurring in Australia. Spas particularly offer a way to combine your passions for spa products and philosophy and make a significant contribution to promoting healthier ways of living and being. Got you thinking? Read on

10 great reasons to buy a Spa franchise in Australia

1. Australia – along with the rest of the world is on the crest of wave of a `wellness` boom. This ‘Wellness Revolution’ is a significant move towards good living, healthy eating, prevention-not-cure philosophy, which will be worth billions of dollars in Australia in the next 10 years.

2. Shoppers are becoming product conscious, reading labels, avoiding chemicals and being prepared to pay good money for products free of pesticides and preservatives. The serious slog in the gym is out and peace and relaxation at the spa is in.

3. Spas enjoy constant, positive, media coverage. Pick up a magazine anywhere, in the doctors` surgery, on the plane you will see spas featured. Today’s spas are more than bubble baths, they offer products and services for the soothing of body and mind delivered by professionals who are skilled and committed to customer service.

4. Visits to spas in Australia are said to be growing at a rapid rate. Figures for instance from Victoria’s Spa and Wellness Tourism Action plan 2005-10 showed an average growth rate of 13.8 per cent per annum over the period 2001-2004. It can only get better

5. The baby boomers are the wealthiest generation to ever hit retirement. They are not afraid to indulge their passion for the fountain of youth, including spas.

6. Workers with very little downtime want to milk every available minute of relaxation from it. Where else but in the spa.

7. A visit to a spa is no longer a treat reserved exclusively for holidays, business trips and the rich. Trends suggest a move towards local residents using spas on main streets and shopping malls.

8. On holiday they are no longer a luxury they are an expected part of the service.

9. Spas and health retreats are becoming popular places for companies to hold company meetings and discuss business plans.

10. Women do not have the monopoly on spa visitations. Many spas offer packages for males and have seen a trend towards increased male pampering.

It’s easy to see that people see a great need for spa products and services and that the trend is likely to continue. Do you want to be a part of this exciting development? Do you have a passion for bringing healthy and relaxing services to customers? Do you have the drive and creativity to make this a successful business? Have we got you interested? If so check out spa franchises in Australia. Live your passions and make a contribution!

If you’re thinking of buying a franchise, but don’t know where to start, it’s probably a good thing you chose to read this. Starting a franchise is a big decision for any entrepreneur and a lot of thought and planning must go into it.

You need to consider several factors before starting a franchise business – this process might make the difference between success and failure.

Let’s see what we’re talking about.

Set your goals: This is what it’s all about. Make a list of the reasons why you want to enter this business. What do you expect to get in terms of return on investment or annual income? Most important, do you have the commitment to go the distance?

Identify your investment capability: Estimate how much capital is required and how much you can afford to invest for starting a franchise of your choice. Hence you need to know the initial franchise fee, royalty payment terms and other expenses beforehand. You also need to decide if you want to go it alone or rope in some partners.

Know your abilities: As with any business, the success of a franchise will depend on whether you have the requisite skills. Take a long, hard look at your previous achievements and experience and focus on your areas of strength. For instance, you may be good at managing people or a sales whiz or great with computers! To become a franchisee of Subway® chain of restaurants, you need to pass a test in math and English. Choose a franchise opportunity that can leverage your strong points.

Do your homework: Look at the franchisor’s track record before taking up that offer of a franchise. Is the brand doing well? How are franchisees treated? What support services and training resources do they provide? An absolute must do – talk to other franchisees before you make that call.

Understand scope of business: Find out if there are pre-conditions regarding outlet size, operations methodology, restrictions on territory or any other. Know what you can and cannot expect.

Read the fine print: Once you have zeroed in on the franchise you want to buy, ask to see the inevitable Franchise Agreement. The agreement will list out the rights and obligations of both parties, and will govern the terms of your relationship. Be sure to take a professional legal opinion.

Also ask for a copy of the franchisor’s disclosure document, called Franchise Offering Circular. This will help you assess the franchisor’s financial stability and general business acumen and predict if the company is financially capable of delivering its promises. Under the Federal Trade Commission’s Franchise Rule, you must receive this document at least 10 business days before you sign up.

Ask yourself: Finally, ask yourself the following questions before starting a franchise:

§ Do I need any start up training?

§ Which location is best suited for starting a franchise business?

§ What equipment is needed?

§ How many people do I need to begin operations?

§ Have I considered all the risks?

Remember, due diligence is essential, and some professional guidance might come in handy.

For many the ultimate American dream is attaining financial independence. However, the easiest methods of making money, (which entails getting a job), may not offer the type of financial independence people are looking for. In fact, most people who have made it rich have done so by starting their own businesses or buying a franchise. If you would like to be one of these types of people, you will need to decide whether its better you start a business from scratch or run an existing franchise. This article will explain the differences between the two.Speaking of advertising much less has to be done when you get a franchise. This is because the name of the franchise pretty much markets itself, especially if it is widespread. Yet, this can offer a potential disadvantage too, one that is not evident with a new business. When you have a franchise name, you gain all of the publicity associated with it. For instance, if your franchise in general has been accused of using child labor in other countries, your business could be affected even though your store or restaurant never did such things. Compare this to a new business, which starts off with a fresh reputation. You determine your own publicity rather than inheriting it.In conclusion, the main factors that need to be considered when deciding whether to buy a franchise over owning a new business are: price, advertising concerns and creative expression. All in all it will generally be harder trying to get a franchise over starting a new business, but the monetary reward will be much greater. However, if you are unable to start a franchise right now, you can always start a smaller business and once it builds up then move into franchising. By doing things this way you can go about achieving the American Dream through two financially independent venues.