Food Franchise

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Buying a franchise enables you to promote a service or product that is already up and running and successful. Therefore it is the perfect way of starting up your own business without having to start from scratch independently. There are several advantages in operating a business franchise.

Companies sell franchises in order to expand the market share more rapidly and with lower costs. There is a wide variety of business franchises for you to choose from. The most common business format franchises are detailed in this article. These business format franchises allow the franchisee to sell their services and products and use the business techniques. Therefore the basic structure of the business is already set up for you unlike if you were to go at it alone. This is a very different and advantageous way of working compared to other types of franchises such as distributorships.

There are a number of additional advantages to owning a franchise. The main one that many people focus on is the way the business is already set up and therefore the pre-opening work is done for you. When you buy into a business format franchise you have the right to use their established business practices as well as sell their products and services. They may provide you with training and allow you to use their marketing strategies.

The products that you will be selling and the services that you will be providing are already well-recognized by the consumers and therefore they are easier to market and sell. This is another advantage of buying into a franchise. An example of this is if you opened a McDonald’s restaurant. If you were to open an independent hamburger restaurant then you would have to start all the marketing from scratch in order to obtain your customers. But McDonald’s already has a wide range of consumers and therefore the hard work is already done for you. All you would need to concentrate on is running the business and keeping the customers happy. Similarly the privilege of being able to use the company’s logo and other designs will also help you as it is usually already well-recognized. These provide the means of attracting more and more customers.

Many franchises will provide you with training when you buy into them. This is a great advantage over starting up your own business as you would have to train yourself and learn from your own mistakes.

The franchise will pay an initial fee to obtain the franchise rights and will also pay a percentage of gross sales to the parent company throughout your time in the business. The franchise will be expected to meet the quality controls that the parent company set and this will help to protect them from allowing below-par products or services to be sold through their franchised stores.

The way the store is run and the products that are sold are restricted. The business location and site appearance may also have to meet particular specifications when starting up the franchise.

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 it’s better you start a business from scratch or run an existing franchise. This article will explain the differences between the two.

Firstly, you can expect to pay significantly more if you buy a franchise. For example, you will need at least $500,000 to get a Mcdonald’s. Things may be cheaper if you decide to buy a lesser known franchise, but you will still need to pay in the hundreds of thousands. Compare this to the possibility that you may only need tens of thousands or even less when starting a business from scratch. If you are really ambitious yet poor, it is possible to start a business with absolutely zero dollars. You would have to do everything online and do a lot of marketing work through free advertising venues, but it is certainly possible.

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.

Lastly, when you run a franchise there is not much room for creative expression when it comes to the products you sell and/or the services you provide. This is because you must follow a set of franchise rules. While this may be annoying, without franchise rules the franchise loses the uniqueness that makes it a franchise in the first place. However, when you own your own business you can pretty much do what you want.

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.

What are the advantages and disadvantages of franchising?

You have decided to buy a franchise. Which one will you choose? There are so many out there. Are you going to go for a coffee shop or fast food outlet? What about an internet business, printing company or stationary?

There are distinct advantages in buying a franchise over starting your own business from scratch. The greatest advantage is that most franchises are still trading after 3 years whereas most new start ups have ceased trading.

What is a franchise?

With a franchise you benefit from a proven business model and the experience of a larger organisation. You have to pay a franchise fee and a license fee to the franchisor to have the right to run their business model.

In the UK companies like McDonalds, Prontaprint & KFC made franchising very popular in the 70s. Now you can find an outlet in nearly every town & city in the UK. Franchising is now one of the fastest growing areas of business in the UK.

Let’s examine the pros and cons of franchising

The advantages are:

1) You receive full training in the operation of your business

2) You are not reinventing the wheel

3) You receive support from the franchisor when you encounter a problem

4) You have a proven business model

5) It is in the franchisors interest for you to succeed

6) Accounting procedures and business systems are well established

7) You are part of a group of people all running the same business

You benefit from national marketing

The disadvantages are:

1) You have to pay the franchisor a percentage of your profits

2) You have to follow the guidelines laid down by the franchisor

3) The Franchisor controls the development of your business

4) The Franchisor dictates your supply chain

5) You have to market the business in a way that is approved by the Franchisor

6) You have to report back to the Franchisor at least annually

Before you jump in

Before you commit to a franchise make sure that you evaluate the following points:

1) Take professional advice from lawyer before signing any agreements

2) Take advice from an accountant to check the viability of the business

3) Carry out market research to see if the franchise is right for your area

4) Be prepared for hard work – running a business requires commitment

If you’re ready to make the commitment, franchising can be a rewarding, and often highly lucrative business.

If you are interested in buying a franchise business, it may behoove you to do so through a franchise broker. You should also consider utilizing the advice of a professional franchise consultant.

So, What Exactly is a Franchise Broker?
A franchise broker is simply someone who acts as a liaison between franchisors and franchisees. He gets the two parties together and has the sale of a franchise as his ultimate goal.

Empirebb compares a franchise, or business broker to a real estate broker because, essentially, a business broker does the same thing. The only difference is that instead of selling houses, the franchise broker is selling businesses. He assists the seller in preparing the business for sale and also prepares and delivers necessary documents. He will facilitate the closing of a deal and earn a commission on each sale.

The franchise broker’s knowledge of available business opportunities can greatly aid you in your own search.

Some Functions of Franchise Brokers
Empirebb provides this list of the various roles of a business broker:

* Listing businesses available for sale
* Assisting owners in the appraisal of their businesses
* Gathering and/or requesting all the relevant documents for the sale of the business
* Producing description sheets, which promote the businesses
* Promoting those franchises which he has listed
* Guiding/qualifying prospective franchisees
* Acting as an intermediary between franchisor and franchisee
* Setting up contacts for both parties with professionals such as lawyers and accountants who will be instrumental in completing the sale
* Assisting both franchisor and franchisee throughout the sales process

Well, What About a Franchise Consultant?
A franchise consultant provides professional advice to entrepreneurs interested in franchising. US FranchiseNews suggests a list of things you, as a potential franchisee, should expect from a professional franchise consultant.

This list includes matching you with a franchise that will best suit your individual needs based on finances and personality. The consultant should find, within your selected industry, a franchise with a “creditable track record.” You should be advised by the consultant of what a particular franchise agreement will expect of you, so you can make comparisons through your own research. A consultant should assist the prospective franchisee in acquiring all pertinent information about a franchise and explain how you can research the franchise on your own. Finally, the consultant should aid in the review of legal documents and help you understand various financing options.

And What are the Advantages of this?
You might ask what the advantage could be in paying for this type of advice. After all, you are capable of doing research on your own. Well, there are many benefits associated with the acquisition of professional knowledge.

Starting a franchise (or any business) is a monumental decision that requires many cogs to work together in one machine, and, frankly, seeking the advice of an expert in the field just makes good sense.

The use of a franchise consultant will also exponentially increase your chances of locating that one business opportunity that is just perfect for you. A professional consultant will be well-acquainted with the plethora of opportunities available. And, with business opportunities ranging from investment-only to part-time ventures to even multiple unit chains in industries ranging from fast-food to retail sales to tax preparation, the expertise of a franchise consultant could greatly reduce the time you must personally spend researching to find the best fit. It just means you’ll be opening the doors of your own business that much quicker.

All this being said, there are a few factors to consider when choosing a consultant or broker. First, a potential franchisee should bear in mind that other than factual information such as financial data or litigation history, all the advice provided by a professional will be subjective. This means that you should consider the philosophies of a franchise consultant and whether they coincide with your own.

For example, some consultants may believe that the product itself is the key to success, so a franchise that offers a product or service in high demand will be an automatic success; however, a different franchise consultant might truly feel that brand awareness is the best indicator of future success and so advise you to seek out a well-known franchise.

Therefore, as a prospective franchisee, you should evaluate your own philosophies about the keys to success in business, so you can make an advantageous selection when it comes time to choose a franchise broker or consultant.

This way, you assure yourself that your broker or consultant will be presenting you with business opportunities with a strong potential to be a good match for you.

And remember that success in franchising is measured by reaching your personal goals within your personal timeframe. It isn’t necessarily based exclusively on profits.

A good franchise broker or consultant will weigh all the elements of your personality, needs and unique desires in order to locate a business opportunity that will be rewarding to you in each of these areas and exhibit the best possible potential for allowing you to achieve your business goals.

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.